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CA Foundation Company Accounts — practice questions — page 2

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 31–60 of 90.

A bonus issue needs authorisation in a general meeting on whose recommendation?Read the answer and worked solution →A company that has defaulted on interest on fixed deposits can make a bonus issue:Read the answer and worked solution →A company with 6,00,000 shares of Rs 10 gives 1 bonus share per 2 held. Amount capitalised:Read the answer and worked solution →A bonus issue of 2 shares for every 5 held on 2,50,000 shares gives how many new shares?Read the answer and worked solution →Bonus shares are distributed to shareholders in what way?Read the answer and worked solution →Why is a bonus issue not an economic event for shareholders?Read the answer and worked solution →A bonus share issue is very similar to which corporate action?Read the answer and worked solution →A company announcing a bonus issue also announces which date to fix eligible owners?Read the answer and worked solution →Which term is another name for a bonus issue?Read the answer and worked solution →With a scrip dividend, shareholders can choose cash or shares. Under a bonus issue they:Read the answer and worked solution →A holder of 500 shares gets one scrip share per ten held. Total shares held after:Read the answer and worked solution →Existing shareholders are offered new shares under a rights issue in proportion to their:Read the answer and worked solution →A rights offer must allow acceptance for a period of at least how many days (general rule)?Read the answer and worked solution →The time allowed to accept a rights offer cannot exceed:Read the answer and worked solution →A shareholder offered rights shares may usually:Read the answer and worked solution →A rights offer notice must be dispatched at least how many days before the issue opens?Read the answer and worked solution →An investor holds 100 shares costing Rs 400 each and takes up 1:1 rights at Rs 200. Average cost is:Read the answer and worked solution →In a rights issue, what is the role of an underwriter?Read the answer and worked solution →An over-subscription privilege lets investors buy:Read the answer and worked solution →A shareholder with 10,000 shares gets rights 1:5 at Rs 80. Money payable if fully taken up:Read the answer and worked solution →Rights under a rights issue may be transferable, so holders can:Read the answer and worked solution →The ban on voting rights applies to which security of a company?Read the answer and worked solution →Debentures convertible into shares need approval by:Read the answer and worked solution →A debenture trustee is mandatory if an offer is made to more than how many persons?Read the answer and worked solution →A debenture trustee's duty is to protect the interests of the:Read the answer and worked solution →If a company fails to redeem debentures on maturity, who can direct redemption?Read the answer and worked solution →A debenture is mainly a debt instrument to borrow money at a:Read the answer and worked solution →Debenture holders, unlike equity holders, generally have no right to:Read the answer and worked solution →Debentures that can be turned into equity shares are called:Read the answer and worked solution →Compared to convertible ones, non-convertible debentures usually carry:Read the answer and worked solution →

Worked practice questions

A bonus issue needs authorisation in a general meeting on whose recommendation?

  1. Auditors
  2. Registrar
  3. The Board
  4. SEBI
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Correct answer: C. The Board

The Board recommends the bonus and the general meeting authorises it, besides authority in the articles.

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A company that has defaulted on interest on fixed deposits can make a bonus issue:

  1. Freely at any time
  2. Only with SEBI nod
  3. Not while default exists
  4. After a one-year wait
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Correct answer: C. Not while default exists

Having no default on interest or principal of deposits or debt securities is a condition for capitalising reserves.

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A company with 6,00,000 shares of Rs 10 gives 1 bonus share per 2 held. Amount capitalised:

  1. Rs 60,00,000
  2. Rs 15,00,000
  3. Rs 20,00,000
  4. Rs 30,00,000
Show answer and solution

Correct answer: D. Rs 30,00,000

Bonus shares are 3,00,000 and at Rs 10 each the amount capitalised is Rs 30,00,000.

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