CBSE Class 12 (Commerce) Accounting for Share Capital — practice questions
70 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 12 (Commerce) Accounting for Share Capital in the app →A company is best described as an artificial person created by:The maximum amount of capital a company is authorised to raise, as stated in its Memorandum, is the:That part of the issued capital which the public has agreed to subscribe is the:The portion of the subscribed capital that the company has asked shareholders to pay is the:Shares that carry a preferential right to dividend at a fixed rate are called:Shares that get dividend only after preference shareholders and carry voting rights are:When a share of face value ₹10 is issued for ₹10, it is said to be issued:When a share of face value ₹10 is issued for ₹13, the extra ₹3 is the:Cancelling the shares of a member who fails to pay the call money is known as:A debenture represents a:Holders of equity shares are regarded as the ___ of the company:If applications received exceed the number of shares offered, the issue is said to be:The liability of the shareholders of a company limited by shares is limited to:What acts as the official signature of a company, an artificial person?In a company limited by shares, a member's liability is limited to theA private company can have at most how many members, excluding employees?Who alone can form a One Person Company in India?Why does a company keep one common Share Capital Account?Authorised capital is the amount a company may issue as stated in itsAuthorised capital is also called nominal capital orThe part of authorised capital actually offered to the public is calledAuthorised capital that is not offered for public subscription is calledA Rs. 10 share has Rs. 7 called. On 1,000 such shares, called up capital isPaid up capital equals called up capital minusUncalled amount to be called only on winding up is known asReserve capital of a company is available only toWhen applications exceed shares offered, allotment is made equal toPreference shareholders get dividend before which group is paid?Preference and equity shares are defined in which Section of the Companies Act, 2013?A share with no preferential right to dividend or capital repayment isDividend on equity shares isMinimum subscription cannot be less than what share of the issued amount?Refund delayed beyond 8 days after the list closes carries interest atShares issued at exactly their nominal value are issuedA Rs. 100 share issued at Rs. 105 is issued at a premium ofSecurities premium is shown in the balance sheet underPremium on shares is generally called with the amount due onOn allotment, premium due is credited to Share Capital and to which account?Which situation allows a company to issue shares at a discount?Besides reissue of forfeited shares, shares may be issued at a discount asShares issued to vendors for assets they sold are issued for considerationA building costing Rs. 5,40,000 is paid for in Rs. 100 shares at par. Shares issued?Unpaid amount on allotment or calls from a shareholder is calledIn the balance sheet, calls in advance appear underA company treats calls in advance received from shareholders as aMoney received before a call is due is credited toMoney received on rejected share applications must beThe Share Application Account is closed on allotment because it is only aThe ASBA method for paying application money was developed byAllotment in the same proportion to all applicants is calledShares applied for are fewer than the shares offered. This isA company offers 2,00,000 shares but gets applications for 1,90,000. It allotsAuthorised capital is 4,00,000 shares of Rs. 10 and 2,00,000 shares are offered. Issued capital is2,00,000 shares of Rs. 10 have Rs. 8 called and Rs. 6,000 is in arrears. Paid up capital isA company has 25,000 promoter shares and offers 2,00,000 Rs. 10 shares to the public. Issued capital isCancelling shares for unpaid calls and keeping the money already paid isWho may forfeit shares for non-payment of calls under the articles?On forfeiture, Share Capital A/c is debited with theDiscount allowed on reissue of forfeited shares is debited toBalance of Share Forfeiture A/c after reissue is transferred to200 forfeited Rs. 10 shares had Rs. 600 received. Maximum discount on reissue is200 forfeited Rs. 10 shares (Rs. 600 received) are reissued as fully paid for Rs. 1,800. Debit to Forfeiture AIn the same case, how much of the forfeiture balance moves to Capital Reserve?200 Rs. 100 shares are forfeited for an unpaid final call of Rs. 30. Forfeiture A/c is credited withCapital profit on reissue arises on which shares?Members of a company limited by guarantee become liable only whenWhy can a company sue and be sued in its own name?Shares of a public limited company are generallyApplication money is deposited with aThe last instalment on shares is described by adding the word