MCQ on Accounting for Issue of Shares: Check the below Corporate and Management Accounting MCQ on Accounting for Issue of Shares with Answers Pdf free download. Corporate and Management Accounting MCQ on Accounting for Issue of Shares Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Accounting for Issue of Shares with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Accounting for Issue of Shares Questions with Answers based on the latest syllabus.

MCQ on Accounting for Issue of Shares

1. Amount received as calls-in-advance is a of the company.
(A) right
(B) asset
(C) debt
(D) revenue

2. If authorized by the company may receive from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.
(A) Memorandum of Association (MOA)
(B) Articles of Association (AOA)
(C) Prospectus
(D) Securities Exchange Board of India

3. ______ paid on calls-in-advance.
(A) Share of company’s profit can be
(B) Dividend can be
(C) No dividend is
(D) None of above

4. Interest on calls-in-advance is paid for the period from the –
(A) Date of receipt of application money to the date of appropriation
(B) Date of receipt of allotment money to the date of appropriation
(C) Date of receipt of calls-in-advance to the date of appropriation of the call
(D) Date of appropriation to the date of dividend payment

5. Premium on issue of shares must be treated as ______.
(A) Revenue Receipt
(B) Deferred Revenue Receipt
(C) Capital Receipt
(D) Capital Loss

6. Amount due on calls made but not paid is known as –
(A) Calls-in-Advance
(B) Calls-in-Arrear
(C) Unpaid amounts
(D) Defaulting amounts

7. Balance of interest on the calls-in-arrear account is transferred to at the end of the year.
(A) Share capital account
(B) Calls in advance account
(C) Securities premium account
(D) Profit & loss account

8. Balance of interest on calls-on- advance account is transferred to the at the end of the year.
(A) Share capital account
(B) Calls in advance account
(C) Securities premium account
(D) Profit & loss account

9. As per Table F of Schedule I of the Companies Act, 2013, interest on calls in advance can be paid at p.a.
(A) 8%
(B) 10%
(C) 12%
(D) 15%

10. Premium on issue of shares must be credited to a separate account called
(A) Share Premium Account
(B) Securities Premium Account
(C) Discount on Issue of Shares
(D) Securities Profit Account

11. If the number of shares issued is more than the number of shares applied the shares are said to be –
(A) Oversubscribed
(B) Undersubscribed
(C) Minimum subscription
(D) None of above

12. A company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and debited.
(A) Preliminary expenses account
(B) Goodwill account
(C) Capital reserve account
(D) Suspense account

13. _____ may be said to be the compulsory termination of membership by way of penalty for non-payment of allotment and/or any call money.
(A) Surrender of shares
(B) Forfeiture of shares
(C) Transfer of shares
(D) Transmission of shares

14. R Ltd. forfeited 300 equity shares of ₹ 10 fully called-up, held by Mr. X for non-payment of the first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share and allotment money @ ₹ 3 per share. These shares were reissued at ₹ 10 each. Amount to be transferred to Capital Reserve Account =?
(A) ₹ 1,500
(B) ₹ 3,000
(C) ₹ 600
(D) ₹ 900

15. Securities premium account must be shown separately on the liabilities side of the balance sheet under the heading
(A) Share Capital; Shareholders Funds
(B) Reserves & Surplus; Shareholders Funds
(C) Secured Loan; Reserves & Sur-plus
(D) Unsecured Loan; Profit or Loss

16. If the number of shares applied for is more than the number of shares issued the shares are said to be –
(A) Oversubscribed
(B) Undersubscribed
(C) Minimum subscription
(D) None of above

17. T Ltd. forfeited 500 equity shares of ₹ 10 fully called-up, held by Mr. Ram for non-payment of allotment money of ₹ 5 (including ₹ 2 premium), the first call of ₹ 2 and final of ₹ 3 each. However, he paid application money @ ₹ 2 per share. These shares were reissued at ₹ 9 each. On reissue amount to be transferred to capital reserve account =?
(A) ₹ 1,500
(B) ₹ 2,500
(C) ₹ 500
(D) ₹ 1,000

18. As per Table F of Schedule I to the Companies Act, 2013, interest on calls in arrear can be received at p.a.
(A) 10%
(B) 12%
(C) 15%
(D) 8%

19. In case of oversubscription of shares each applicant receives the shares in some proportion, it is known as –
(A) Bonus allotment
(B) Right allotment
(C) Per applicant allotment
(D) Pro-rata allotment

20. Which of the following Table of Schedule I to the Companies Act, 2013 contains the provisions relating to Calls-in-Advance & Calls-in-Arrears?
(A) Table F
(B) Table A
(C) Table C
(D) Table G

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By Team Learning Mantras