XII - Issue of share capital

Reserve share capital means :

• Part of authorized capital to be called at the beginning

• Portion of uncalled capital to be called only at liquidation

• Over subscribed capital

• Under subscribed capital

When full amount is due on any call but it is not received, then the short fall is debited to :

• Calls-in-advance

• Calls-in-arrear

• Share Capital

• Suspense Account

The difference between subscribed capital and called up capital is called :

• Calls-in-arear

• Calls-in-advance

• Uncalled capital

• None of these

Which statement is issued before the issue of shares ?

• Prospectus

• Articles of Association

• Memorandum of Association

• All of these

Company can utilize securities premium for :

• Writing off loss incurred on revaluation of asset

• Issuing fully paid bonus shares

• Paying divided

• Writing off trading loss

When a company issues fully paid shares to promoters

for their services, the journal entry will be:

• Bank A/c Dr.

  To Share Capital A/c

• Good will A/c Dr.

  To Share Capital A/c

• Promoters Personal A/c Dr.

  To Share Capital A/c

• Promotion Expenses A/c Dr.

  To Share Capital A/c

When a company issues shares at a premium, amount of premium may be received by the company :

• Along with application money

• Along with application money

• Along with calls

• Along with any of the above

Share Application Account is :

• Personal Account

• Real Account

• Nominal Account

• None of these

Securities Premium can not be applied :

• For paying dividend to members

• For issuing bonus shares to members

• For writing off preliminary expenses of company

• For writing off discount on issue of debentures

A joint stock company is :

• An artificial legal person

• Natural person

• A general person

• None of these