This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Accountancy > Class 12 Accountancy Chapter 4 Accounting For Companies Issue Of Shares – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 4 Accounting For Companies Issue Of Shares Quiz 2 (34 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following will define, when appropriation of a certain number of shares is made to an applicant in response to his application? A) Share allotment. B) Share forfeiture. C) Share trading. D) Share Purchase. Show Answer Correct Answer: A) Share allotment. 2. Maximum Number of Members in a private Company A) 7. B) 200. C) 20. D) 150. Show Answer Correct Answer: B) 200. 3. A Company may issue the shares: A) By Private Placement of Shares. B) By Public Subscription of Shares. C) For Consideration other than cash. D) By All of the Above. Show Answer Correct Answer: D) By All of the Above. 4. A Company allotted 20, 000 shares to applicants of 50, 000 shares after rejecting 10, 000 applications. The ratio in which company allotted the share will be A) 5:3. B) 5:2. C) 2:1. D) 3:1. Show Answer Correct Answer: C) 2:1. 5. The portion of authorized capital which can be called up only on the liquidation of the company:- A) Authorised capital. B) Reserve capital. C) Issued capital. D) Called up capital. Show Answer Correct Answer: B) Reserve capital. 6. Which of the following capital is not shown in the company's Balance Sheet ' A) Authorised capital. B) Issued &subscribed capital. C) Called-up & paid up-capital. D) Reserve capital. Show Answer Correct Answer: D) Reserve capital. 7. Dividends are usually paid on: A) Authorised Capital. B) Issued Capital. C) Called up Capital. D) Paid Up Capital. Show Answer Correct Answer: D) Paid Up Capital. 8. Ralph Ltd. issued 150, 000 shares at Rs. 10 per share with a premium of Rs. 2 per share payable Rs. 3 on application, Rs. 5 on allotment (including premium) and balance on the first call. Applications were received for 120, 000 shares. Calculate the amount received by Ralph Ltd. on application. A) Rs. 360, 000. B) Rs. 600, 000. C) Rs. 750, 000. D) Rs. 450, 000. Show Answer Correct Answer: A) Rs. 360, 000. 9. Which shareholders have a right to receive the arrears of dividend from future profits: A) Convertible Preference Shares. B) Redeemable Preference Shares. C) Participating Preference Shares. D) Cumulative Preference Shares. Show Answer Correct Answer: D) Cumulative Preference Shares. 10. Preference shareholders have A) Preferential right as to dividend only. B) Preferential right in the management. C) Preferential right as to repayment of capital at the time of liquidation of the company. D) Preferential right as to dividend and repayment of capital at the time of liquidation of the Company. Show Answer Correct Answer: D) Preferential right as to dividend and repayment of capital at the time of liquidation of the Company. 11. Which one does not belong to the features of company A) Legal Person. B) Perpetual Succession. C) Body Corporate. D) Sole Ownership. Show Answer Correct Answer: D) Sole Ownership. 12. Which format of the Financial Statements is followed by companies today? A) Schedule III of the Companies Act, 1956. B) Schedule III of the Companies Act, 2013. C) Schedule II of the Companies Act, 2013. D) Schedule II of the Companies Act, 1956. Show Answer Correct Answer: B) Schedule III of the Companies Act, 2013. 13. The share of profit a shareholder will receive is called A) Net profit. B) Retained profit. C) Dividend. D) Surplus. Show Answer Correct Answer: C) Dividend. 14. Equity Shares of ₹ 10 each were issued at 8% premium to Purchase P&M. Which account will be debited? A) Share Capital A/c. B) P&M A/c. C) Bank A/c. D) Security premium A/c. Show Answer Correct Answer: B) P&M A/c. 15. If vendors are issued fully paid shares of ₹ 1, 25, 000 in consideration of net assets of?1, 50, 000, the balance of ₹ 25, 000 will be credited to A) Statement of Profit and Loss A/c. B) Goodwill A/c. C) Securities Premium A/c. D) Capital Reserve A/c. Show Answer Correct Answer: C) Securities Premium A/c. 16. When the issue price and face value are same, the issue is termed as ..... A) Issued at Premium. B) Issued at Par. C) Issued at Discount. D) All of the Above. Show Answer Correct Answer: B) Issued at Par. 17. Persons who start a company are called ..... A) Auditors. B) Shareholders. C) Promoters. D) Directors. Show Answer Correct Answer: C) Promoters. 18. Minimum notice for paying call is of A) 24days. B) 20days. C) 10days. D) 14days. Show Answer Correct Answer: D) 14days. 19. A Company is created by: A) Companies Act. B) Members. C) Special act of the Parliament. D) Investors. Show Answer Correct Answer: A) Companies Act. 20. What is the minimum amount of shares that has to be subscribed in an IPO? (Initial Public Offer) A) 90%. B) 80%. C) 100%. D) 95%. Show Answer Correct Answer: A) 90%. 21. Minimum number of directors in Public Ltd. Company are A) 7. B) 5. C) 3. D) 2. Show Answer Correct Answer: C) 3. 22. Shares Application &Allotment A/c is a:- A) Personal. B) Real. C) Nominal. D) None of the above. Show Answer Correct Answer: A) Personal. 23. The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders? A) Dividends are usually given at a set amount in every' financial year. B) Shareholders risk the loss of investment. C) Shareholders bear the risk of no dividends in the event of losses. D) Shareholders usually have the right to vote. Show Answer Correct Answer: A) Dividends are usually given at a set amount in every' financial year. 24. Figure out the Order-1. Issued Capital2. Subscribed Capital3. Authorised Capital4. Paid Up Capital5. Called Up Capital A) 2, 3, 5, 1, 4. B) 3, 2, 1, 4, 5. C) 3, 1, 2, 5, 4. D) 2, 1, 3, 5, 4. Show Answer Correct Answer: C) 3, 1, 2, 5, 4. 25. When a public limited company raises capital from public, it needs to issue ..... to the public A) Prospectus. B) Letter of Offer. C) Letter of Invitation. D) None of the Above. Show Answer Correct Answer: A) Prospectus. 26. The portion of issued capital which is subscribed by the public is called ..... A) Called-up Capital. B) Subscribed Capital. C) Paid-up Capital. D) Nominal Capital. Show Answer Correct Answer: B) Subscribed Capital. 27. ..... is transferred to Capital Reserve. A) Profit from sale of fixed assets. B) Premium on issue of shares. C) Profit on forfeiture of shares. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 28. Promotion Expenses are also known as- A) Capital Expenses. B) Preliminary Expenses. C) Answer is not among the Options. D) Revenue Expenses. Show Answer Correct Answer: B) Preliminary Expenses. 29. Share application a/c Dr to share capitalwhat does this entry mean? A) Receipt of application money. B) Refund of application money. C) Transfer of application money. D) None of the above. Show Answer Correct Answer: C) Transfer of application money. 30. When the shares are issued for consideration other than cash which account will be debited A) Share Capital A/c. B) Vendor A/c. C) Capital Reserve A/c. D) Securities Premium. Show Answer Correct Answer: B) Vendor A/c. 31. When the call money is received by the company, ..... account is credited A) Share Call Account. B) Cash Account. C) Share Capital. D) None of the Above. Show Answer Correct Answer: A) Share Call Account. 32. Amount of discount given at the time of reissue of shares should be debited to: A) Shares Capital. B) Discount on Shares. C) Share Forfeiture A/c. D) Calls-In-Areas A/c. Show Answer Correct Answer: C) Share Forfeiture A/c. 33. Issue of shares at a price lower than its face value is called: A) Issue at a Profit. B) Issue at a Loss. C) Issue at a Premium. D) Issue at a Discount. Show Answer Correct Answer: D) Issue at a Discount. 34. Ltd company took over assets worth Rs. 10, 00, 000 and liabilities of Rs. 3, 00, 000 for purchase consideration worth Rs. 12, 00, 000 how much amount will be debited to goodwill account A) Rs. 5, 00, 000. B) Rs. 3, 00, 000. C) Rs. 10, 00, 000. D) Rs. 12, 00, 000. Show Answer Correct Answer: A) Rs. 5, 00, 000. ← PreviousRelated QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Accountancy Chapter 4 Accounting For Companies Issue Of Shares Quiz 1Class 12 Accountancy Chapter 1 Accounting For Partnership Firms Fundamentals QuizClass 12 Accountancy Chapter 2 Accounting For Partnership Firms Admission Of A Partner QuizClass 12 Accountancy Chapter 3 Accounting For Partnership Firms Retirement Death Of A Partner QuizClass 12 Accountancy Chapter 5 Accounting For Companies Issue Of Debentures QuizClass 12 Accountancy Chapter 7 Financial Statements Of Companies QuizClass 12 Accountancy Chapter 8 Analysis Of Financial Statements QuizClass 12 Accountancy Chapter 9 Computerised Accounting System Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books