Share capital

A Company has

• Separate legal entity

• Perpetual existence

• Limited liability

• All of above

Shareholders are

• Customer of company

• Owners of the company

• Creditors of the company

• Suppliers of the company

Reserve capital is also known as

• Capital reserve

• Called up capital

• Subscribe capital

• None of above

Pro rata allotment is made when there is

• Under subscription

• Oversubscription

• Equal subscription

• As and when desired by directors

Shareholder get return in the form of

• Interest

• Dividend

• Commission

• Profit

Discount allowed on re-issue of forfeited share is debited to

• Share capital A/c

• share forfeiture A/c

• Statement of Profit and loss

• General reserve

If a share of 100 on which 60 has been paid, if forfeited. it can be reissued at the minimum price of

• 60

• 100

• 40

• 140

Maximum limit of premium on share is

• 5%

• 10%

• No limit

• 100%

As per table F, the company is required to pay ................ interest on the amount of call in advance.

• 12%P.A

• 5%P.A

• 10%P.A

• 6%P.A

Assertion: Premium received on issue of share is credited to security premium.

Reason: Security premium is the reserve hence may be credited to general reserve.

• Assertion and reason is correct and reason is not correct explanation of assertion.

• Assertion and reason is correct and reason is correct explanation of assertion.

• only Assertion is correct.

• Assertion is not correct but reason is correct.