MCQ Class 12 Accountancy Chapter 1 Accounting for Share Capital

Check the below NCERT MCQ Class 12 Accountancy Chapter 1 Accounting for Share Capital with Answers available with PDF free download. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Accounting for Share Capital Class 12 Accountancy MCQs Questions with answers which will help students to revise and get more marks in exams

Accounting for Share Capital Class 12 Accountancy MCQs Questions with Answers

Refer below for MCQ Class 12 Accountancy Chapter 1 Accounting for Share Capital with solutions. Solve questions and compare with the answers provided below

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

Question: The portion of the authorised capital which can be called-up only on the liquidation of the company is called
a) Reserve capital
b) Authorised capita
c) Issued capital
d) Called up capital

Question: The following statements apply to equity/preference shareholders. Which one of them applies only to preference sharehoders?
a) Shareholders risk the loss of investment
b) Shareholders bear the risk of no dividends in the event of losses
c) Shareholders usually have the right to vote
d) Dividends are usually given at a set amount in every financial year.

Question: Premium on the issue of shares should be shown :
a) On the Assets side of balance sheet
b) On the Equity & Liabilities side of balance sheet
c) In profit & loss Statement
d) None of the Above

Question: Section 591of Act states this type of company is incorporated outside India but has established business in India, Called
a) Private company
b) Government Company
c) Foreign Company
d) Limited company

Question. ESOP offered by company will create / retain :
(a) A sense of belongingness employees
(b) High caliber
(c) High Productivity
(d) All of these

Question: Deepak Ltd. offered for subscription 5,50,000 equity shares of Rs. 10 each.The public applied for 5,00,000 shares.
The call ( Rs. 8 per share) was received except from Gopal, who holds 4,000 shares has not paid after application money of Rs. 2 per share and from Shyam who holds 1,000 shares has paid only Rs. 6 per share. Gopal’s shares were forfeited. The amount of subscribed capital to be disclosed in the Balance Sheet is
(a) Rs.39,96,000.
(b) Rs.39,74,000.
(C) Rs.49,46,000.
(d) Rs.49,74,000.

Question: Which of the following statement in false
a) No bonus issue shall be made within 12 months of any public or right issue.
b) Bonus issue is made out of free reserves or securities premium collected in cash only
c) Bonus shares can be issued out revaluation profit.
d) Company can issue bonus shares in any ratio

Question: If a share of Rs. 100 on which Rs.60 has been paid, is forfeited, it can be re-issued at the minimum price of:
a) Rs. 60
b) Rs.100
c) Rs. 40
d) Rs.140

Question: Preference shares, in case the holders of these have a right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called :
a) Cumulative Preference Share
b) Non-cumulative Preference Share
c) Convertible Preference Share
d) Non-convertible Preference Share

Question: A Company offered 50,000 shares of ?10 each at par payable as to ?3 on applications, ?5 on allotment and the balance on final call. Applications were received for 60,000 shares and the allotment was made pro-rata. The excess application money was to be adjusted on allotment and call. How much amount will be transferred from Share Application A/c to Share Allotment A/c?
a) ₹1,80,000
b) ₹30,000
c) ₹1,50,000
d) ₹50,000

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

Answer: Any Number of members

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

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

Question: Which of the following is not a statistical book of a company?
a) Register of debenture holders
b) Share application and allotment book
c) Register of share warrants
d) Register of shares and debentures transferred

Question: A new company set up by existing companies with five year track record can issue share at premium provided:
a) All of the options
b) Participation of existing companies are not less that 50%
c) Prospectus contains justification for issue price
d) The issue price is made applicable to all new investors uniformly.

Ques. Shareholders receive from the company :
(A) Interest
(B) Commission
(C) Profit
(D) Dividend

Ques. The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders?
(A) Shareholders risk the loss of investment
(B) Shareholders bear the risk of no dividends in the event of losses
(C) Shareholders usually have the right to vote
(D) Dividends are usually given at a set amount in every financial year.

Question: Section 591of Act states this type of company is incorporated outside India but has established business in India, Called
a) Foreign Company
b) Government Company
c) Private company
d) Limited company

Question: It is that part of uncalled capital which the company reserve to be called only upon winding up of company
a) Reserve Capital
b) Share capital.
c) Called up Capital
d) Called up Capital

Question: When Second instalment paid
a) On allotment
b) On Application
c) Both
d) None of the options

Question: If the loss on reissue on shares is less than the amount forfeited, the surplus is transferred to
a) Capital Reserve
b) Revenue Reserve
c) Current liabilities
d) None of the options

Ques. ……………. is transferred to Capital Reserve.
(A) Profit from sale of fixed assets
(B) Premium on issue of shares
(C) Profit on forfeiture of shares
(D) All of the Above

Ques. If a shareholder does not pay his dues on allotment, for the amount due, there will be a
(a) Credit balance in the Shares Allotment Account.
(b) Debit balance In the Shares Forfeiture Account.
(c) Credit balance in the Shares Forfeiture Account.
(d) Debit balance in the Shares Allotment Account,

Question: The capital of a company is divided into a number of equal parts, Each part is called
a) Share
b) Debenture
c) General Reserve
d) None of the options

Question: What is the limit of Securities Premium on the issue of shares?
a) Unlimited
b) 0.1
c) 0.15
d) 0.2

Ques. If a share of Rs. 10 issued at a premium of Rs.3 on which the full amount has been called and Rs.8 (including premium) paid is forfeited the capital account should be debited with :
(A) Rs. 5
(B) r 8
(C) Rs.10
(D) Rs.13

Ques. Metacaf Ltd. issued 50,000 shares of Rs.100 each payable Rs.20 on application (on 1st May 2012); Rs.30 on allotment (on 1st January 2013); Rs.20 on first call (on 1st July 2013) and the balance on final call (on 1st February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date. The second call was made and Shankar paid the first call amount along with the second call. All sums due were received.
Total amount received on 1st February was :
(A) Rs. 15,00,000
(B) Rs. 16,00,000
(C) Rs. 10,00,000
(D) Rs. 11,00,000

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