MCQ Questions Chapter 1 Accounting for Share Capital Class 12 Accountancy

Please refer to MCQ Questions Chapter 1 Accounting for Share Capital Class 12 Accountancy with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 12 Accountancy issued for the current academic year. We have provided MCQ Questions for Class 12 Accountancy for all chapters on our website. Students should learn the objective based questions for Chapter 1 Accounting for Share Capital in Class 12 Accountancy provided below to get more marks in exams.

Chapter 1 Accounting for Share Capital MCQ Questions

Please refer to the following Chapter 1 Accounting for Share Capital MCQ Questions Class 12 Accountancy with solutions for all important topics in the chapter.

MCQ Questions Answers for Chapter 1 Accounting for Share Capital Class 12 Accountancy

Question. Rajan Limited issued 50,000 shares at a price lower than the nominal value of the share. The sharesissued are called:
(a) Sweat equity shares
(b) Redeemable Preference shares
(c) Equity shares
(d) Bonus shares

Question. E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, applicationmoney on another 6000 shares was refunded .The amount payable on the application was Rs.2. Sitaramanapplied for 420 shares . The number of shares allotted to him will be:
(a) 60 shares
(b) 340 shares
(c) 320 shares
(d) 300 shares

Question. Maximum limit of premium on shares is :
(a) 32%
(b) 20%
(c) No limit
(d) 100%

Question: Maximum number of members in a Private Company
(a) 60
(b 70
(c) 50
(d) 100

Question: Maximum number of members in a Public Company
(a) 50
(b) 60
(c) None of the options
(d) Any Number of members

Question: Minimum Capital of a Private Company
(a) 1 Lakh
(b) 2 Lakh
(c) 3 Lakhs
(d) None of the options

Question: Interest on calls in advance
(a) 6% P.A
(b) 5% P.A
(c) 9% P.A
(d) No Interest

Question: Minimum number of members in a Private Company
(a) 2
(b) 5
(c) 7
(d) 1

Question: Minimum number of members in a Public Company
(a) 7
(b) 2
(c) 5
(d) 3

Question: Minimum application money in case of public limited company
(a) 5% of the nominal face value
(b) 10% of the nominal face value
(c) 15% of the nominal face value
(d) None of the options

Question: Minimum Capital of a Public Company
(a) 1 Lakh
(b) 2 Lakh
(c) 5 Lakh
(d) None of the options

Question: Maximum Rate of discount
(a) 10% of the nominal value of share
(b) 5% of the nominal face value
(c) 15% of the nominal face value
(d) None of the options

Question: Issue of share at a discount
(a) Section 79
(b) Section 78
(c) Section 76
(d) None of the options

Question: Interest on calls in arrear
(a) 5% P.A
(b) 6% P.A
(c) 9% P.A
(d) No Interest

Question: Which of the following statement is false:
(a) A company is a legal entity quite distinct from its members.
(b) A company can buy its own share
(c) Same person can agent and creditor of the company
(d) A shareholder is the agent of the company

Question: Which of the following are the characteristics of a company
(a) Liability of the members is limited upto the face value of shares held by them
(b) It is a voluntary association of persons.
(c) A company is a separate body can sue and be sued in its own name
(d) All of the above

Question: Formed by special act of the legislature or parliament Called
(a) Statutory Company
(b) Guarantee company
(c) Chartered companies
(d) None of the options

Question: Minimum subscription in case of public company
(a) 75% of the entire issue
(b) 90% of the entire issue
(c) 50% of the entire issue
(d) None of the options

Question: Incorporated under special charter by the king or sovereign
(a) Chartered companies
(b) Statutory Company
(c) Guarantee company
(d) None of the options

Question: Minimum number of directors in Pvt. Ltd company
(a) 3
(b) 4
(c) 2
(d) No limit

Question: Minimum number of directors in Ltd company
(a) 3
(b) 2
(c) 4
(d) No limit

Question: Which of the following capital is not shown in companys balance sheet:
(a) Reserve Capital
(b) Authorised capital
(c) Issued and Subscribed capital
(d) Called and paid up capital

Question: Permission from central government to issue share capital is required if Nominal capital exceeds
(a) 1 Crore
(b) 2 Crore
(c) 1 Lakh
(d) 2 Lakh

Question: Issue of share at a premium
(a) Section 78
(b) Section 79
(c) Section 76
(d) None of the options

Question: Liability of the member is limited upto the amount he guaranteed to contribute in the event of winding up.
(a) Guarantee company
(b) Statutory Company
(c) Chartered companies
(d) None of the options

Question: Securities premium account is shown on the liabilities side of the balance sheet under the head:
(a) Share capital
(b) Current liabilities
(c) Reserves and surplus
(d) None of the options

Question. 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
(d) Shown as current asset.

Question. Arrange the following in proper sequence as types of “Share Capital”
(a) Paid up capital
(b) Issued capital
(c) Subscribed capital
(d) Called up capital   

Question. Following amounts were payable on issue of shares by a company : Rs.3 on application , Rs.3 onallotment , Rs.2 on first call and Rs.2 on final call . X holding 500 shares paid only application andallotment 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

Question. 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

Question. When nominal (face) value of a share is called up by the company but as some shareholders didnot pay the money, the shares are forfeited . The share capital is shown in the balance sheet (notes) of acompany 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

Question. Zee Ltd issued 15,000 equity shares of Rs.20 each at a premium of Rs.5 payable Rs.5 onapplication,Rs.10 on allotment (including premium) and the balance on first and final call. The companyreceived applications for 22,500 shares and allotment was made pro rata. Bittoo to whom 1,200 shares werea 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

Question. Zen Ltd purchased the sundry assets of M/s Surat Industries for Rs.28,60,000 payable in fully paidshares 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
(d) 26,000

Question.The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 each. There were no callsin arrear till the final call was made. The final call made was paid on 97,500 shares. The calls in arrearamounted to Rs.87,500.The final call on share :
(a) Rs.20
(b) Rs.35
(c) Rs.25
(d) Rs.45

Question.These shares which in addition to the fixed preference dividend, carry a right to participate in thesurplus 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

Question.T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro rata basis. The amountpayable on application is Rs.2. Manoranjan applied for 450 shares. The number of shares allotted and theamount 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

Question. A company forfeited 3,000 shares of Rs.10 each(which were issued at par) held by Kishore fornonpayment of allotment money ofRs.5 per share.The called up value per share was Rs.8.On forfeiture, theamount debited to share capital:
(a) Rs.30,000
(b) Rs.24,000
(c) Rs.15,000
(d) Rs.6,000

Question. Z limited issued shares of Rs.100 each at a premium of 10%. Mr. Q purchased 500 shares and paidRs.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
(b) Rs. 3500
(c) Rs. 1650
(d) Rs. 3000

Question.Daisy Limited forfeited 200 shares Rs.10 each who had applied for 500 shares, issued at apremium of 10% for nonpayment of final call of Rs.3 per share. Out of these 100 shares were issued as fullypaid up for Rs.15. The profit on reissue is :
(a) Rs. 700
(b) Rs. 6400
(c) Rs. 300
(d) Rs. 400

Question.Mithas Limited was formed with share capital of Rs. 50,00,000 divided into 50,000 shares ofRs.100 each. 9,000 shares were issued to the vendor as fully paid for purchase consideration of a furnitureacquired. 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

Question. Faltu Limited invited application for 2,00,000 shares of Rs.10 each. These shares were issued atpremium of Rs.11 each which was allowed at the time of allotment. All money was called and duly receivedexcept 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 theamount 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

Question. Mahima limited has an authorised capital of Rs. 1,00,00,000 divided into 1,00,000 equity sharesof Rs .100 each . If offered 90,000 equity shares Rs.10 each at a premium of Rs.8 .The public applied for81,000 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.………. is the amount of Share capital to be shown in the balance sheet of the company.  

Question. Out of total face value, liability of a shareholder is limited to …………… value of the shareallotted to him.  

Question. 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

Question. Mr. X purchased business from Y Ltd. By payingRs.15 lakh for the assets worth Rs.18 lakh and liabilities worth Rs.4 lakh. Then _______ A/c will be credited by Rs. 1 lakh.  

Question. X Ltd purchase the running business of Y Ltd consist total asset of Rs. 10,00,000 liabilities of Rs. 2,00,000. X Ltd paid Rs. 2,00,000 immediately in cash and balance by issuing 7,000 share of Rs. 100 each at a premium of Rs. 20 per share. The goodwill A/c will be debited by Rs._______.

Question. Beta ltd. issued 10,000 shares of Rs.10 each at 20% premium which was over-subscribed to the extent of 5,000 shares. All money to be paid on application only and shares were allotted on pro-rata basis. The company will refund________.

Question. Alpha ltd. forfeited 200 equity shares of Rs. 10 each on which Rs. 6 was paid (including Rs. 1 premium). On reissue, the company can allow Rs.______as discount.

Question. Rock ltd. Issued 10,000 equity shares of Rs.10 each out of which 2,000 shares were offered to the promoters stands debited to___________

Question. Rock ltd. Forfeited 2,000 equity shares of Rs. 10 each(called up Rs.7 each)for non-payment of Rs. 3 per share on allotment out of which company reissued 1,000 shares for Rs.9 each ,Amount of share capital will be credited by Rs.________.

Question. A company issued 50,000,12% preference shares of Rs.100 each. Company received applications for 70,000 shares. This will be known as ________of shares.

True/False:

Question. Equity shares we get interest and on debenture we get dividend 

Question. Reserve capital is the capital which will be called up by the company only at the event of winding up of the company.

Question. Subscribed capital can be more than issued capital.

Question. Securities premium money can be utilized to pay dividend to shareholders.

Question. Reserve capital A/c is the account where excess amount of forfeited shares is transferred.

Question. Maximum amount of discount allowed at the time of reissue of forfeited shares should not exceed the forfeited amount.

Question. True/False-Share application amount is in the nature of Real account

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