Accounting for issue of shares

Figure out the Order -

1. Issued Capital

2. Subscribed Capital

3. Authorised Capital

4. Paid Up Capital

5. Called Up Capital

• 2, 3, 5, 1, 4

• 2, 1, 3, 5, 4

• 3, 1, 2, 5, 4

• 3, 2, 1, 4, 5

When a company receives share application money, the entry will be-

• Debit Bank a/c ; Credit Share Capital a/c

• Debit Share Capital a/c ; Credit Bank a/c

• Debit Application a/c ; Credit Bank a/c

• Debit Bank a/c ; Credit Share Application a/c

Tara Ltd. issued 120,000 shares. The issued was subscribed for 110,000 shares. This is a case of ______.

• Full Subscription of Shares

• Undersubscription of Shares

• Oversubscription of Shares

What is the minimum amount of shares that has to be subscribed in an IPO? (Initial Public Offer)

• 95%

• 90%

• 100%

• 80%

Ralph Ltd. issued 150,000 shares at Rs. 10 per share with a premium of Rs. 2 per share payable Rs. 3 on application, Rs. 5 on allotment (including premium) and balance on the first call. Applications were received for 120,000 shares. Calculate the amount received by Ralph Ltd. on application.

• Rs. 450,000

• Rs. 750,000

• Rs. 600,000

• Rs. 360,000

Ralph Ltd. issued 150,000 shares at Rs. 10 per share with a premium of Rs. 2 per share payable Rs. 3 on application, Rs. 5 on allotment (including premium) and balance on the first call. Applications were received for 120,000 shares. Calculate the amount received by Ralph Ltd. on application.

• Rs. 450,000

• Rs. 750,000

• Rs. 600,000

• Rs. 360,000

Which format of the Financial Statements is followed by companies today?

• Schedule II of the Companies Act, 2013

• Schedule III of the Companies Act, 1956

• Schedule II of the Companies Act, 1956

• Schedule III of the Companies Act, 2013

When Shares are issued at a premium, the same will be credited to ________ a/c.

• Share Capital

• To the Particular Call

• Securities Premium

• Capital Reserve

share application a/c Dr

to share capital

what does this entry mean ?

• Receipt of application money

• refund of application money

• transfer of application money

share application a/c....................Dr

To share capital a/c

To Bank a/c

• applications totally refused for allotment

• applications rejected in full and making Pro-rata allotment to the rest

• applications are made partial allotment