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AP Intermediate 2nd Year Accounting for Share Capital — practice questions

Explore 28 free Accounting for Share Capital questions in AP Intermediate 2nd Year Accountancy. Open each question or exercise to read its content, reference answers and available explanation.

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Accounting for Share Capital questions and exercises with answers

Showing questions 1–28 of 28.

What acts as the official signature of a company, an artificial person?Read the answer and worked solution →In a company limited by shares, a member's liability is limited to theRead the answer and worked solution →A private company can have at most how many members, excluding employees?Read the answer and worked solution →Who alone can form a One Person Company in India?Read the answer and worked solution →Why does a company keep one common Share Capital Account?Read the answer and worked solution →Authorised capital is the amount a company may issue as stated in itsRead the answer and worked solution →Authorised capital is also called nominal capital orRead the answer and worked solution →The part of authorised capital actually offered to the public is calledRead the answer and worked solution →Authorised capital that is not offered for public subscription is calledRead the answer and worked solution →A Rs. 10 share has Rs. 7 called. On 1,000 such shares, called up capital isRead the answer and worked solution →Paid up capital equals called up capital minusRead the answer and worked solution →Uncalled amount to be called only on winding up is known asRead the answer and worked solution →Reserve capital of a company is available only toRead the answer and worked solution →When applications exceed shares offered, allotment is made equal toRead the answer and worked solution →Preference shareholders get dividend before which group is paid?Read the answer and worked solution →Preference and equity shares are defined in which Section of the Companies Act, 2013?Read the answer and worked solution →A share with no preferential right to dividend or capital repayment isRead the answer and worked solution →Dividend on equity shares isRead the answer and worked solution →Minimum subscription cannot be less than what share of the issued amount?Read the answer and worked solution →Refund delayed beyond 8 days after the list closes carries interest atRead the answer and worked solution →Shares issued at exactly their nominal value are issuedRead the answer and worked solution →A Rs. 100 share issued at Rs. 105 is issued at a premium ofRead the answer and worked solution →Securities premium is shown in the balance sheet underRead the answer and worked solution →Premium on shares is generally called with the amount due onRead the answer and worked solution →On allotment, premium due is credited to Share Capital and to which account?Read the answer and worked solution →Which situation allows a company to issue shares at a discount?Read the answer and worked solution →Besides reissue of forfeited shares, shares may be issued at a discount asRead the answer and worked solution →Shares issued to vendors for assets they sold are issued for considerationRead the answer and worked solution →

Worked practice questions

What acts as the official signature of a company, an artificial person?

  1. Its own common seal
  2. The company prospectus
  3. The annual balance sheet
  4. The company memorandum
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Correct answer: A. Its own common seal

A company cannot sign by itself, so its own seal serves as its official signature.

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In a company limited by shares, a member's liability is limited to the

  1. Nominal value of shares held
  2. Annual turnover of the company
  3. Total assets of the company
  4. Personal property of directors
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Correct answer: A. Nominal value of shares held

A member who has fully paid the nominal value of his shares owes nothing more towards the company's debts.

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A private company can have at most how many members, excluding employees?

  1. 200
  2. 100
  3. 250
  4. 50
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Correct answer: A. 200

The articles of a private company limit its membership to 200, not counting employees.

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