5 - Accountancy Share Capital

Q.1. Which one of the following items is not a part of subscribed capital?

• (A) Equity Shares

• (B) Preference Shares

• (C) Forfeited Shares

• (D) Bonus Shares

Q.2. At the time of forfeiture of shares the share capital account is debited with

• (A) Face value

• (B) Called up value

• (C) Paid up value

• (D) Issued value

Q.3. Voluntary return of shares for cancellation by the shareholders is called

• (A) Cancellation of shares

• (B) Forfeiture

• (C) Surrender of shares

• (D) None of these

Q.4. If the Premium on the forfeited shares has already been received, then Securities Premium A/c should be:

• (A) Credited

• (B) Debited

• (C) No treatment

• (D) None of these

Q.5. Balance of share forfeiture account is shown in the balance sheet under the head..

• (A) Share Capital Account

• (B) Reserve and Surplus

• (C) Current Liabilities and Provisions

• (D) Unsecured Loans

Q.6. On an equity share of ₹10 the company has called up ₹8 but ₹6 have been received by the company is forfeited, the capital account should be debited by:

• (A) ₹10

• (B) ₹8

• (C) ₹6

• (D) ₹2

Q.7. If a share of ₹10 issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) paid is forfeited the capital account should be debited with:

• (A) ₹5

• (B) ₹8

• (C) ₹10

• (D) ₹13

Q.8. If a share of ₹10 issued at a premium of n on which ₹9 (including premium) have been called and ₹7 including premium is paid is forfeited, the capital account should be debited by:

• (A) ₹10

• (B) ₹7

• (C) ₹8

• (D) ₹9

Q.9. 600 shares of ₹10 each were forfeited for non-payment of ₹2 per share on first call and ₹5 per share on final call. Share Forfeiture Account will be credited with:

• (A) ₹1,200

• (B) ₹1,800

• (C) ₹3,000

• (D) ₹4,200

Q.10. 800 shares of ₹10 each issued at 20% premium were forfeited for non-payment of allotment money of ₹5 (including premium) and first & final of Rs.3 per share. Share Forfeiture Account will be credited with:

• (A) ₹1,600

• (B) ₹2,400

• (C) ₹3,200

• (D) ₹4,800