List of top Accountancy Questions on Accounting for Share Capital asked in CUET (UG)

Nominal share capital is ?

200 shares of Rs.100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs.60 per share including premium. The first and final call of Rs.20 per share on these shares were not made. The forfeited shares were reissued at Rs.70 per share as fully paid-up. Find the amount of capital reserve.

A Limited issued 5000, 10% debentures of Rs. 100 each, at a premium of Rs. 10 per debenture payable as follows:
On application Rs. 25, On allotment Rs. 45 (including premium), On first and final call Rs. 40.
The debentures were fully subscribed and all money was duly received.
Select the correct journal entries related to the above case from the following.
(A)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	10% Debenture Allotment A/c Dr.		2,25,000
	To 10% Debentures A/c			1,75,000
	To Securities Premium Reserve A/c			50,000

(B)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		1,25,000
	To 10% Debenture Application A/c			1,25,000

(C)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		2,00,000
	To 10% Debenture First & Final Call A/c			2,00,000

(D)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		2,20,000
	To 10% Debenture Allotment A/c			2,20,000

Choose the correct answer from the options given below:

H Ltd. purchased machinery worth Rs.99,000 from P Ltd. The payment was made by issue of 12% debentures of Rs.100 each. Pass the necessary journal entries for the issue of debentures when debentures are issued at 10% discount in the books of H Ltd.

In addition to the purchase of own shares by a company and to issue fully paid bonus shares, for which of the following purposes security premium account balance could be used?
(A) To write-off preliminary expenses of the company.
(B) To pay premium on the redemption of preference shares or debentures of the company.
(C) To write-off the expenses of, or commission paid, or discount allowed on any securities of the company
(D) To pay the issue price of debentures.
Choose the correct answer from the options given below:

Arrange the following in a sequence related to the issue and redemption of shares
(A) Forfeiture of shares
(B) Reissue of shares
(C) Calls in arrears
(D) Transfer of share forfeited account balance to capital reserve A/c
Choose the correct answer from the options given below:

Raj Ltd. purchased a machine from Anuj Tech Ltd. for Rs.1,90,000. As per purchase agreement, Rs. 10,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued to Anuj Tech Ltd., if the shares issued at 20% premium.

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

On Bearer debentures, Interest is paid to a person who produces the ................... attached to such debentures?

Match List-I with List-II

List-I	List-II
(A) Debentures issued for consideration other than cash	(I) A company issues debentures at a price lower than their face value.
(B) Debentures issued as Collateral Security	(II) A company purchases assets from vendors and make payment by debentures
(C) Debentures issued for cash	(III) The company may issue its own debentures to the lenders in addition to some other assets already pledged
(D) Debentures issued at discount	(IV) A company invite the public to apply for debentures by issue of prospectus

Choose the correct answer from the options given below:

"Members may come and go, but the company continues. Even an atom bomb can't end a company".

Which feature of a company is highlighted in the above statement?

For one person company, Rule 3 of the Companies (Incorporation) Rules, 2014 provides that its average annual turnover of three years does not exceed ...................

Who are entitled to share the distributable profits of the company after satisfying the dividend rights of the preference shareholders?

Minimum subscription of capital cannot be less than ................... amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000.

If a company fails to receive minimum subscription within 120 days from the date of issue of the prospectus, in how many days should company refund the amount of application money from the date of issue of prospectus?

Which account is credited at the time of reissue of forfeited shares?

A company forfeited 200 equity shares of \$10 each, fully called up, on which application and allotment money of \$6 per share was paid. Out of these, 150 shares were reissued as fully paid up for \$8 per share. What exact amount must be transferred to the Capital Reserve Account?

Money received in advance from shareholders before it is actually called-up by the directors is

400 forfeited shares were reissued at ₹9 per share fully paid-up. Face value of each share was ₹10. What is the amount of discount on reissue?

XYZ Ltd. forfeited 500 shares of ₹10 each issued at par for non-payment of final call ₹2 per share. How much amount was forfeited?

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to: A. the price of any property purchased, or to be purchased, which has to be met wholly or partly out of the proceeds of issue;
B. preliminary expenses payable by the company and any commission payable in connection with the issue of shares
C. working capital;
D. any other expenditure required for the usual conduct of business operations Choose the correct answer from the options given below:

If a company fails to receive minimum subscription within 120 days from the date of issue of the prospectus, in how many days should company refund the amount of application money from the date of issue of Prospectus?

While issuing the share capital for public subscription where there is no Articles of Association of its own, the following provisions of Table A will apply: (A) A period of one month must elapse between two calls.
(B) The amount of call should not exceed 25% of the face value of the share.
(C) A minimum of 7 days' notice is given to the shareholders to pay the amount.
(D) Calls must be made on a uniform basis on all shares within the same class.
Choose the correct answer from the options given below:

On Reissue of 500 forfeited shares as fully paid at Rs. 8 per share, what amount will be debited to Shares Forfeiture Account?

What is the amount of Profit on reissue of Forfeited Shares Accounts transferred to Capital Reserve?