{"id":18677,"date":"2021-02-15T12:14:40","date_gmt":"2021-02-15T06:44:40","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=18677"},"modified":"2021-02-15T12:23:59","modified_gmt":"2021-02-15T06:53:59","slug":"mcq-questions-for-class-12-accountancy-chapter-6","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/mcq-questions-for-class-12-accountancy-chapter-6\/","title":{"rendered":"MCQ Questions for Class 12 Accountancy Chapter 6 Accounting for Share Capital with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 6 Accounting for Share Capital with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers<\/a>. You can also verify your answers from our provided Accounting for Share Capital Class 12 MCQs Questions with Answers. So, ace up your preparation with MCQ on Accounting for Share Capital Class 12 Objective Questions.<\/p>\n

Accounting for Share Capital Class 12 MCQs Questions with Answers<\/h2>\n

State which of the following is correct:<\/span><\/p>\n

Question 1.
\nA Joint stock company has:
\n(a) Common Seal
\n(b) Limited Liability
\n(c) Separate Legal Entity
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Question 2.
\nPrivate company is one which:
\n(a) Restrict the right of members to transfer shares
\n(b) Prohibits any invitation to the public to subscribe
\n(c) Limit the number of members to two hundred
\n(d) All of the above.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of the above.<\/p>\n<\/details>\n

\n

Question 3.
\nMinimum number of members in a public company:
\n(a) 2
\n(b) 7
\n(c) 50
\n(d) No limit.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) 7<\/p>\n<\/details>\n

\n

Question 4.
\nMinimum number of members in a private company:
\n(a) 2
\n(b) 7
\n(c) 50
\n(d) No limit.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) 2<\/p>\n<\/details>\n

\n

Question 5.
\nMaximum number of members in a private company:
\n(a) 7
\n(b) 50
\n(c) 100
\n(d) 200.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) 200.<\/p>\n<\/details>\n

\n

Question 6.
\nMaximum number of members in a public company:
\n(a) 2
\n(b) 7
\n(c) 50
\n(d) No limit.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) No limit.<\/p>\n<\/details>\n

\n

Question 7.
\nEquity shareholders are the _______ of the company.
\n(a) Owners
\n(b) Creditors
\n(c) Money lenders
\n(d) Customers.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Owners<\/p>\n<\/details>\n

\n

Question 8.
\nDebenture holders are the ______ of the company.
\n(a) Owners
\n(b) directors
\n(c) Moneylenders
\n(d) Customers.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Moneylenders<\/p>\n<\/details>\n

\n

Question 9.
\nPreference shareholders are the _______ of the company.
\n(a) First Owners
\n(b) Second Owners
\n(c) Money lenders
\n(d) Customers.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Second Owners<\/p>\n<\/details>\n

\n

Question 10.
\nCompanies in India are governed by companies Act:
\n(a) 1912
\n(b) 1976
\n(c) 1932
\n(d) All of these.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these.<\/p>\n<\/details>\n

\n

Question 11.
\n_________ is the fractional part of the total Capital of the company.
\n(a) Share
\n(b) Debenture
\n(c) Bond
\n(d) All of these.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Share<\/p>\n<\/details>\n

\n

Question 12.
\n______ shares have to be repaid by the company after a specified period.
\n(a) Equity
\n(b) Preference
\n(c) Both equity and preference
\n(d) All of these.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Preference<\/p>\n<\/details>\n

\n

Question 13.
\nRate of return is not fixed on _______.
\n(a) Preference share
\n(b) Equity share
\n(c) Debentures
\n(d) All of these.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Equity share<\/p>\n<\/details>\n

\n

Question 14.
\n_________ enjoys the rights of voting.
\n(a) Equity share holder
\n(b) Preference share holder
\n(c) Debenture holder
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Equity share holder<\/p>\n<\/details>\n

\n

Question 15.
\n________ can not be redeemed during the life time of a company.
\n(a) Equity shares
\n(b) Preference shares
\n(c) Debentures
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Equity shares<\/p>\n<\/details>\n

\n

Question 16.
\nShares can be issued at:
\n(a) Par
\n(b) Discount (sweat equity)
\n(c) Premium
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Question 17.
\n_______ capital is the sum mentioned in capital clause of Memorandum of Association.
\n(a) Nominal
\n(b) Authorised
\n(c) Registered
\n(d) All of these<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of these<\/p>\n<\/details>\n

\n

Question 18.
\n________ capital is that portion of uncalled share capital which shall not be called except in the event and for the purpose of the company wound up.
\n(a) Nominal
\n(b) Called up
\n(c) Paid up
\n(d) Reserve.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Reserve.<\/p>\n<\/details>\n

\n

Question 19.
\nIssued capital can never be more than _______ capital.
\n(a) Subscribed
\n(b) Nominal
\n(c) Paid up<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Nominal<\/p>\n<\/details>\n

\n

Question 20.
\nWhen the number of shares applied for is less than the number of shares offered, is called ______ subscription.
\n(a) minimum
\n(b) over
\n(c) under
\n(d) par<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) under<\/p>\n<\/details>\n

\n

Question 21.
\nWhen the number of shares applied for is more than the number of shares offered, is called ______ subscription.
\n(a) minimum
\n(b) over
\n(c) under
\n(d) par<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) over<\/p>\n<\/details>\n

\n

Question 22.
\nApplication money never is less than ________ of face value.
\n(a) 5%
\n(b) 10%
\n(c) 25%
\n(d) 100%<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) 5%<\/p>\n<\/details>\n

\n

Question 23.
\nMinimum subscription amount must be received within _____ subscription list.
\n(a) 10
\n(b) 120
\n(c) 30
\n(d) 7<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) 30<\/p>\n<\/details>\n

\n

Question 24.
\nMaximum paid-up capital in case of OPC is restricted to rupees ______.
\n(a) \u20b9 2,00,000
\n(b) \u20b9. 5,00,000
\n(c) \u20b9 50,00,000
\n(d) \u20b9 2,00,00,000<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) X 50,00,000<\/p>\n<\/details>\n

\n

Question 25.
\nCalls amount should not exceed _______ of the face value.
\n(a) 30%
\n(b) 25%
\n(c) 90%
\n(c) 10%<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) 25%<\/p>\n<\/details>\n

\n

Question 26.
\nSection ______ of Companies Act provide those conditions which must be followed if share are issued at discount.
\n(a) 52
\n(b) 53
\n(c) 54
\n(d) 79.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) 54<\/p>\n<\/details>\n

\n

Question 27.
\nInterest on calls arrears will be charged@ _______ pa.
\n(a) 5%
\n(b) 6%
\n(c) 10%
\n(d) 12%.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) 10%<\/p>\n<\/details>\n

\n

Question 28.
\nInterest on calls in advance will be allowed @ ______ p.a.
\n(a) 5%
\n(b) 6%
\n(c) 10%
\n(d) 12%.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) 12%.<\/p>\n<\/details>\n

\n

Question 29.
\nAmount received for security premium will be credited to:
\n(a) Cash Account
\n(b) Share Capital Account
\n(c) Capital Reserve
\n(d) Security Premium Account.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Security Premium Account.<\/p>\n<\/details>\n

\n

Question 30.
\nDiscount (Loss) allowed on Re-issue of shares will be debited to:
\n(a) Share Discount A\/c
\n(b) Share forfeiture A\/c
\n(c) Profit and Loss A\/c
\n(d) Share Capital A\/c.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Share forfeiture A\/c<\/p>\n<\/details>\n

\n

Question 31.
\nAmount of security premium may be called along with:
\n(a) Application
\n(b) Allotment
\n(c) Calls
\n(d) Any of a,b,c<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Any of a,b,c<\/p>\n<\/details>\n

\n

Question 32.
\nThe balance of share forfeiture account after re-issue is transferred to:
\n(a) Share Capital
\n(b) Capital Reserve
\n(c) General Reserve
\n(d) Security Premium.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Capital Reserve<\/p>\n<\/details>\n

\n

Question 33.
\nJoy Ltd. issued 1,00,000 equity shares of \u20b9 10 each. The amount was payable as follows:
\nOn application -\u20b9 3 per share.
\nOn allotment – \u20b9 4 per share.
\nOn 1st and final call balance.
\nApplications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire amount due including the amount due on first and final call on the 750 shares allotted to him along with allotment. The amount received on allotment was:
\n(a) \u20b9 3,80,000
\n(b) \u20b9 3,78,000
\n(c) \u20b9 3,80,250
\n(d) \u20b9 4,00,250 (CBSEDelhi 2015)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) \u20b9 3,80,250<\/p>\n<\/details>\n

\n

Question 34.
\nNirman Ltd. issued 50,000 equity shares of \u20b9 10 each. The amount was payable as follows:
\nOn application – \u20b9 3 per share
\nOn allotment – \u20b9 2 per share On first and final call – The balance
\nApplications for 45,000 shares were received and shares were allotted to all the applicants. Pooja, to whom 500 shares were allotted, paid her entire share money at the time of allotment, whereas Kundan did not pay the first and final call on his 300 shares. The amount received at the time of making first and final call was:
\n(a) \u20b9 2,25,000
\n(b) \u20b9 2,20,000
\n(c) \u20b9 2,21,000
\n(d) \u20b9 2,19,500<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) \u20b9 2,21,000<\/p>\n<\/details>\n

\n

Question 35.
\nMetacaf Ltd. issued 50,000 shares of \u20b9 100 each payable \u20b9 20 on application (on 1 st may 2012) \u20b9 30 on allotment (on 1st January 2013) \u20b9 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.
\n(a) \u20b9 15,00,000
\n(b) \u20b9 16,00,000
\n(c) \u20b9 10,00,000
\n(d) \u20b9 11,00,000<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) \u20b9 16,00,000<\/p>\n<\/details>\n

\n

Fill in the blanks with correct word:<\/span><\/p>\n

Question 36.
\nA portion of share capital that is reserved by the company and will be utilized only on the happening of winding up of the company is called _______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Reserve Capital<\/p>\n<\/details>\n

\n

Question 37.
\nCompany is an _____ person.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: artificial<\/p>\n<\/details>\n

\n

Question 38.
\nCompany is _______ under the provisions of Companies Act 2013.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: incorporated<\/p>\n<\/details>\n

\n

Question 39.
\nCompany is an artificial person created by _______.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Law<\/p>\n<\/details>\n

\n

Question 40.
\nLiability of members of a company is _______ to the extent of the value of shares held by him.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Limited<\/p>\n<\/details>\n

\n

Question 41.
\nA joint State company has a ______ seal.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Common<\/p>\n<\/details>\n

\n

Question 42.
\nReserve capital is the part of _______ capital.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 5 Uncalled<\/p>\n<\/details>\n

\n

Question 43.
\nPublic Ltd. companies arc required to write ________ after their name.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Limited<\/p>\n<\/details>\n

\n

Question 44.
\nPrivate Companies are required to use _____ after their names<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Private Limited<\/p>\n<\/details>\n

\n

Question 45.
\nPublic Ltd. Company imposes ______ on the transfer of share.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: No restriction<\/p>\n<\/details>\n

\n

Question 46.
\nShares come into existence when ______ money is demanded.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: allotment<\/p>\n<\/details>\n

\n

Question 47.
\nThere is no fixed rate of dividend on ______ .<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: equity shares<\/p>\n<\/details>\n

\n

Question 48.
\nOn cumulative preference shares, arrears of dividend _________ automatically.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: accumulate<\/p>\n<\/details>\n

\n

Question 49.
\n______ shareholders don\u2019t have normal voting rights.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: preference<\/p>\n<\/details>\n

\n

Question 50.
\nShares which are not preference shares are called __________ shares.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Equity<\/p>\n<\/details>\n

\n

Question 51.
\nAt the time of forfeiture of shares, ________ will be debited.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Share Capital Account<\/p>\n<\/details>\n

\n

Question 52.
\nShares cannot be issued at ___________ to the public.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Discount<\/p>\n<\/details>\n

\n

Question 53.
\n________ Capital is not a part of balance sheet.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Reserve<\/p>\n<\/details>\n

\n

Question 54.
\nThe purpose of creating __________ capital is to assure security to unsecured creditors.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Reserve<\/p>\n<\/details>\n

\n

Question 55.
\nSection _______ of the Companies Act., 2013 provides issue of sweat equity shares.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 54<\/p>\n<\/details>\n

\n

Question 56.
\nSection ________ of Companies Act. 2013 provides for ESOP.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 62.<\/p>\n<\/details>\n

\n

State whether the following statements are true or false:<\/span><\/p>\n

Question 57.
\nMinimum number of members in a private limited company is three.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 58.
\nMaximum number of directors in a company can be fifteen.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 59.
\nOne person company is the extension of sole proprietorship with limited liability.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 60.
\nIrredeemable preference shares carry the same features as that of equity shares.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 61.
\nFixed dividend is allowed on equity shares.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 62.
\nPreference shareholders have no normal voting rights.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 63.
\nEquity shareholders are owner of the company.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 64.
\nCompany have perpetual succession.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 65.
\nIf shareholders are unable to pay their dues then company can forfeit their shares.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 66.
\nCompany can forfeit shares without any notice.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 67.
\nThere is no difference between private company and public company.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 68.
\nTable F deals with calls in arrears.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 69.
\nPrivate placement refers to issue of shares privately without disclosing the facts on issue.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 70.
\nCalled up capital may be greater than issued capital.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 71.
\nCompany can exceed the limit of nominal capital through alteration in the memorandum of association.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 72.
\nReserve capital and capital reserve are same in nature.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 73.
\nThere is lot of difference between minimum subscription and under subscription.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 74.
\nIssue of shares at discount can be issued only to directors and employees of a company.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 75.
\nSecurities premium reserves can be used to issue bonus shares to the equity shareholders.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 76.
\nCalled up value on share cannot be more than 25% of the face value of a share.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

One Word Questions:<\/span><\/p>\n

Question 77.
\nWhat is meant by over subscription of shares? (CBSE Compt. 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Oversubscription of shares means that the company receives applications for more than the number of shares offered to the public for subscription.<\/p>\n<\/details>\n

\n

Question 78.
\nWhat is meant by \u2018par value\u2019 of a share? (CBSE Compt. 2019)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Par value is the nominal value or the face value of the share.<\/p>\n<\/details>\n

\n

Question 79.
\nIs Reserve Capital a part of Unsubscribed Capital or Uncalled Capital? (CBSE Delhi 2018)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Yes.<\/p>\n<\/details>\n

\n

Question 80.
\nA company issued 25,000 equity shares of \u20b9 10 each but received applications for 30,000 shares. Name the case of subscription.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Over subscription<\/p>\n<\/details>\n

\n

Question 81.
\nNeelam Limited has the following balances appearing in the balance sheet:<\/p>\n\n\n\n\n\n
Securities Premium Reserve<\/td>\n\u20b9 22,00,000<\/td>\n<\/tr>\n
9% Debentures<\/td>\n\u20b9 1,20,00,000<\/td>\n<\/tr>\n
Underwriting Commission<\/td>\n\u20b9 10,00.000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The company decided to redeem its 9% debentures at a premium of 10%. You are required to state how much securities premium amount can be used for redemption of debentures.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: \u20b9 12,00,000.<\/p>\n<\/details>\n

\n

Question 82.
\nOn 1.1.2016 the first call of \u20b9 3 per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money. Arjun a shareholder holding 1000 shares paid the second and final call of \u20b9 5 per share along with the first call.
\nPass the necessary journal entry for the amount received by opening \u2018Calls-in-arrears\u2019 and \u2018Calls-in- advance\u2019 account in the books of the company.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer:
\n\"MCQ<\/p>\n<\/details>\n

\n

Question 83.
\nWhere will you show call in arrears in the balance sheet?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: As deduction from the subscribed but not fully paid share capital.<\/p>\n<\/details>\n

\n

Question 84.
\nWhere will you show call in advance in the balance sheet?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It is shown under other current liabilities.<\/p>\n<\/details>\n

\n

Question 85.
\nAt what rate of interest, interest on call in arrears, is charged?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: 10%p.a.<\/p>\n<\/details>\n

\n

Question 86.
\nAt what rate interest on calls-in-advance is paid by the company according to Table F of Companies Act, 2013? (CBSE Delhi Compt.2014)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: As per Table F, company is required to pay interest on the amount of calls in advance @ 12% p.a.<\/p>\n<\/details>\n

\n

Question 87.
\nHow would you deal in a situation where the value of purchase considerations is more than the value of net assets while acquiring a business?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It would refer to loss.<\/p>\n<\/details>\n

\n

Question 88.
\nHow will you deal in a situation where the value of net assets is more than the value of purchase consideration while acquiring a business?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: It would refer to gain.<\/p>\n<\/details>\n

\n

Question 89.
\nWhich account will you debit while issuing the shares to the promoters of a company against their services?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Goodwill Account or Incorporation Expenses Account.<\/p>\n<\/details>\n

\n

Question 90.
\nWhen can shares held by a shareholder be forfeited? (CBSE Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: On the non-payment of call money due.<\/p>\n<\/details>\n

\n

Question 91.
\nAn Ltd forfeited a share of 100 issued at a premium of 20% for non-payment of first call of 30 per share and’ final call of 10 per share. State the minimum price at which this share can be reissued. (CBSE Sample Paper 2016)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: \u20b9 40 per share<\/p>\n<\/details>\n

\n

Question 92.
\nGive the meaning of forfeiture of share.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Cancellation of shares.<\/p>\n<\/details>\n

\n

Question 93.
\nAt the time of forfeiture of shares, what amount is credited to share forfeiture account?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: The amount already received.<\/p>\n<\/details>\n

\n

Question 94.
\nWhere will you show the share forfeited account in the balance sheet of a company?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: As an addition in the subscribed capital.<\/p>\n<\/details>\n

\n

Question 95.
\nWhat amount of share capital is debited when the shares are forfeited?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Called up money.<\/p>\n<\/details>\n

\n

Question 96.
\nWhat amount of share capital is credited when the forfeited shares are reissued?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Paid up capital of shares at the time of reissue.<\/p>\n<\/details>\n

\n

Question 97.
\nY Ltd. forfeited 100 equity shares of \u20b9 10 each for the non-payment of first call of \u20b9 2 per share. The final call of ? 2 per share was yet to be made.
\nCalculate the maximum amount of discount at which these shares can be re-issued. (CBSE Delhi 2017)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: \u20b9 6 per share or \u20b9 600.<\/p>\n<\/details>\n

\n

Question 98.
\nIf a question is silent on the question of excess money received with application, how would you treat it?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: In the absence of any information, excess money over the amount due on allotment shall be refunded.<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 12 Accountancy Chapter 6 Accounting for Share Capital with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 12 Accountancy Accounting for Share Capital MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 6 Accounting for Share Capital with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers. You can also verify your answers from our provided Accounting for Share …<\/p>\n

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