Class 12th
Accountancy-Accounting for Share Capital
PRACTICE SHEET – 1
MCQs ISSUE OF SHARES
Ques.1 True/False:
According to the below given information the final call per share is Rs.22.
The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is
Rs.100 each. There were no calls in arrear till the final call was made . The final call made
was paid on 77,500 shares only . The balance in the calls in arrear amounted to Rs.55,000.
Ques.2 True/ False :
Securities premium received on issue of shares cannot be used for the purpose of buy back of
shares.
Ques.3 True/False-Share application amount is in the nature of Real account
Ques.4. Arrange the following in proper sequence as types of “Share Capital”
i) Paid up capital
(ii.) Issued capital
(iii) Subscribed capital
(iv.) Called up capital
Ques.5 Maximum limit of premium on shares is :
(A.) 32%
(B.) 20%
(C.) No limit
(D.) 100%
Ques.6 Amount of money not received out of called up capital is :
(A.) Added to share capital
(B.) Subtracted from share capital
(C.) Shown as current liabilities
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(D.) Shown as current asset
Ques.7 Following amounts were payable on issue of shares by a company : Rs.3 on
application , Rs.3 on allotment , Rs.2 on first call and Rs.2 on final call . X holding 500
shares paid only application and allotment money whereas Y holding 400 shares did not pay
final call . Amount of calls in arrear will be:
(A.) 3,800
(B.) 2,800
(C.) 1,800
(D.) 6,200
Ques.8 Rajan Limited issued 50,000 shares at a price lower than the nominal value of the
share. The shares issued are called:
A) Sweat equity shares
B) Redeemable Preference shares
C) Equity shares
D) Bonus shares
Ques.9 E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis,
application money on another 6000 shares was refunded .The amount payable on the
application was Rs.2. Sitaraman applied for 420 shares . The number of shares allotted to him
will be:
(A.) 60 shares
(B.) 340 shares
(C.) 320 shares
(D.) 300 shares
Ques.10 A company issued 4,000 equity shares of rupees 10 each at par payable as under:
On application rupees 3 , on allotment rupees 2; on first call rupees 4 and on final call rupees
1 per share. Applicants were received for 16,000 share . Application for 6,000 shares were
rejected and pro-rata allotment was made to the applicants for 10,000 shares . How much
amount will be received in cash on first call,when excess application money is adjusted
towards amount due on allotments and calls :
(A.) Rupees 6.000
(B.) nil
(C.) Rupees 16,000
(D.) Rupees 10,000
Ques.11 A company issued 4000 equity shares of rupees 50 each at par payable as under:
On application rupees 20%, on allotment 40% ; on first call 10% ; on final call -balance
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Applications were received for 10,000 shares . Allotment was made pro-rata . How much
amount will be received in cash on allotment?
A) Rupees 6.000
(B.) nil
(C.) Rupees 16,000
(D.) Rupees 20,000
Ques.12. Which one of the following is not a part of subscribed capital:
A) Equity shares issued to vendor
B) Preference shares of convertible type
C) Forfeited shares
D) Bonus shares
Ques.13. When nominal (face) value of a share is called up by the company but as some
shareholders did not pay the money, the shares are forfeited . The share capital is shown in
the balance sheet (notes) of a company under the following heading:
A) Subscribed and fully paid up
B) Subscribed but not fully paid up
C) Subscribed and called up
D) Subscribed but not called up
Ques.14.Zee Ltd issued 15,000 equity shares of Rs.20 each at a premium of Rs.5 payable
Rs.5 on application,Rs.10 on allotment (including premium) and the balance on first and final
call. The company received applications for 22,500 shares and allotment was made pro rata.
Bittoo to whom 1,200 shares were allotted, failed to pay the amount due on allotment. All his
shares were forfeited after the call was made. The forfeited shares were reissued to Dheeraj at
par. Assuming that no other bank transactions took place, the bank balance of the company
after the above transactions is :
A) Rs.6,85,000
B) Rs.3,60,500
C)Rs.3,78,000
D)Rs.6,34,000
Ques.15.Zen Ltd purchased the sundry assets of M/s Surat Industries for Rs.28,60,000
payable in fully paid shares of Rs.100 each. State the number of shares issued to vendor when
issued at premium of 10%.
A)28,000
B)31,778
C)28,600
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D)26,000
Ques.16.The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 each. There
were no calls in arrear till the final call was made. The final call made was paid on 97,500
shares. The calls in arrear amounted to Rs.87,500.The final call on share :
A)Rs.20
B)Rs.35
C)Rs.25
D)Rs.45
Ques.17. These shares which in addition to the fixed preference dividend, carry a right to
participate in the surplus profits, if any, after dividend at a stipulated rate has been paid to the
equity share holders are called:
A) Participating preference shares
B) Convertible preference shares
C) Redeemable preference shares
D) Cumulative preference shares
Ques.18.T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro rata basis.
The amount payable on application is Rs.2. Manoranjan applied for 450 shares. The number
of shares allotted and the amount carried forward for adjustment against allotment money due
from him is:
A) 150 shares,Rs.375
B) 375 shares,Rs.150
C) 400 shares,Rs.100
D) 300 shares,Rs.300
Ques.19.A company forfeited 3,000 shares of Rs.10 each(which were issued at par) held by
Kishore for nonpayment of allotment money ofRs.5 per share.The called up value per share
was Rs.8.On forfeiture, the amount debited to share capital:
A)Rs.30,000
B)Rs.24,000
C)Rs.15,000
D)Rs.6,000
Ques.20. Z limited issued shares of Rs.100 each at a premium of 10%. Mr. Q purchased 500
shares and paid Rs.20 on application but did not pay the allotment money of Rs.30. If the
company forfeited his 30% shares, the forfeiture account will be credited by :
A) Rs. 4500
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B)Rs. 3500
C) Rs. 1650
D) Rs. 3000
Ques.21. Daisy Limited forfeited 200 shares Rs.10 each who had applied for 500 shares,
issued at a premium of 10% for nonpayment of final call of Rs.3 per share. Out of these 100
shares were issued as fully paid up for Rs.15. The profit on reissue is :
A ) Rs. 700
B) Rs. 6400
C) Rs. 300
D) Rs. 400
Ques.22. Mithas Limited was formed with share capital of Rs. 50,00,000 divided into 50,000
shares of Rs.100 each. 9,000 shares were issued to the vendor as fully paid for purchase
consideration of a furniture acquired. 30,000 shares were allotted in payment of cash on
which Rs.70 per share was called and paid . State the amount of subscribed capital :
A) Rs. 50,00,000
B) Rs. 30,50,000
C) Rs. 30,00,000
D) Rs. 20,00,000
Ques.23. Faltu Limited invited application for 2,00,000 shares of Rs.10 each. These shares
were issued at premium of Rs.11 each which was allowed at the time of allotment. All money
was called and duly received except on 10,000 shares on which only application money of
Rs.3 per share was received.
The company forfeited all the shares. 7000 of forfeited share where re-issued at Rs.13per
share. State the amount of securities premium to be shown under the head -Reserve and
surplus.
A) Rs.20,00,000
B) Rs.11,11,000
C) Rs.8,11,000
D) Rs.21,11,000
Ques.24. Mahima limited has an authorised capital of Rs. 1,00,00,000 divided into 1,00,000
equity shares of Rs .100 each . If offered 90,000 equity shares Rs.10 each at a premium of
Rs.8 .The public applied for 81,000 equity shares. Till 31st March 2018, Rs.17 (including
premium) was called . An applicant holding 5000 shares did not pay first call of Rs.2per
share.
As per the above given information:
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………. is the amount of Share capital to be shown in the balance sheet of the company.
Ques.25. Out of total face value, liability of a shareholder is limited to …………… value of
the share allotted to him.
Ques.26. Match the following :
a) Cumulative Pref. Share i)Repaid after some time
b) Participating Pref. Share ii) converts into equity shares
c) Redeemable Pref. shares iii) Dividend accumulates if not paid
d) Convertible Pref. shares iv) Gets share in surplus profit
The correct match is:
A) a-ii ,b-i, c-iii, d-iv
B) a-iii, b-iv, c-i, d-ii
C) a-iii, b-iv, c-ii ,d-i
D) a-ii, b-iv, c-iii, d-i
Answers:
1. True
2. False
3. False
4. Issued, Subscribed, Called –up, Paid-up.
5. C
6. B
7. B
8. A
9. D
10. A
11. D
12. C
13. A
14. C
15. D
16. B
17. A
18. B
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19. B
20. D
21. A
22.C
23. D
24. Rs.7,19,000
25. Called up
26. B
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