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CA Foundation Company Accounts — practice questions

Explore 90 free Company Accounts questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Company Accounts questions and exercises with answers

Showing questions 1–30 of 90.

Match each book or statementRead the answer and worked solution →True or false: the accounting processRead the answer and worked solution →Premium on shares issued above face value is credited to:Read the answer and worked solution →For reduction of capital, the securities premium account is treated as if it were what?Read the answer and worked solution →A permitted use of the securities premium account is:Read the answer and worked solution →Securities premium can provide for redemption premium on:Read the answer and worked solution →Under the Companies Act 2013, issue of shares at a discount is generally:Read the answer and worked solution →A share issued by a company at a discount is treated as:Read the answer and worked solution →If shares are issued at a discount, refund of money is with interest at what rate per year?Read the answer and worked solution →Sweat equity shares must be authorised by which kind of resolution?Read the answer and worked solution →Sweat equity shares can be issued only of a class of shares that is:Read the answer and worked solution →Holders of sweat equity shares rank in what way with other equity shareholders?Read the answer and worked solution →A company limited by shares can have share capital of how many kinds?Read the answer and worked solution →Equity share capital is defined as all share capital that is not:Read the answer and worked solution →Preference share capital carries a preferential right to dividend and to:Read the answer and worked solution →Equity shares may carry differential rights as to dividend and what else?Read the answer and worked solution →After the 2013 Act, a company limited by shares may issue preference shares that are:Read the answer and worked solution →What is the general maximum redemption period for preference shares?Read the answer and worked solution →A preference share period beyond twenty years is allowed for which projects?Read the answer and worked solution →Preference shares can be redeemed from profits or from:Read the answer and worked solution →Which preference shares can be redeemed?Read the answer and worked solution →Preference shares of Rs 5,00,000 are redeemed at par wholly from profits. Transfer to CRR is:Read the answer and worked solution →Rs 8,00,000 preference shares are redeemed with a fresh issue of Rs 3,00,000. CRR needed:Read the answer and worked solution →The Capital Redemption Reserve can be applied in paying up:Read the answer and worked solution →Redemption premium on preference shares is provided for:Read the answer and worked solution →Unredeemed preference shares can be replaced by new ones with the consent of holders of:Read the answer and worked solution →Bonus shares cannot be issued by capitalising which reserve?Read the answer and worked solution →Bonus shares may come from free reserves, CRR or:Read the answer and worked solution →Bonus shares must not be issued in lieu of what?Read the answer and worked solution →Before a bonus issue, partly paid shares outstanding must be made:Read the answer and worked solution →

Worked practice questions

Match each book or statement

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Matching pairs
  1. Left
    Journal
    Right
    The book of original entry for transactions
  2. Left
    Ledger
    Right
    Where entries are grouped account by account
  3. Left
    Trial balance
    Right
    Totals from the ledgers, checked for balance
  4. Left
    Balance sheet
    Right
    What the business owns and owes at a date
Instructions
Tap an item on the left, then tap what it is for.
_Source: ICAI CA Foundation Accounting Ch2 Accounting Process, CHAPTER 2 ACCOUNTING PROCESS_

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True or false: the accounting process

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Questions
  1. Statement is true
    Yes
    Statement
    Every transaction has a two-fold aspect, debit and credit.
  2. Statement is true
    Yes
    Statement
    The journal is the book of original entry.
  3. Statement is true
    Yes
    Statement
    A trial balance draws its totals from the ledger accounts.
  4. Statement is true
    No
    Statement
    A transaction can be recorded with only a debit and no credit.
Instructions
Decide whether each statement about the accounting process is true or false.
_Source: ICAI CA Foundation Accounting Ch2 Accounting Process, CHAPTER 2 ACCOUNTING PROCESS_

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Premium on shares issued above face value is credited to:

  1. General reserve
  2. Revaluation reserve
  3. Capital reserve
  4. Securities premium
Show answer and solution

Correct answer: D. Securities premium

Section 52 requires an amount equal to the premium received to be moved to a securities premium account.

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