Financial Accounting Quiz

What is full subscription?

• Applications received equal to shares issued

• Applications received more than shares issued

• Applications received less than shares issued

• Applications received for different shares

What is over subscription?

• Applications received equal to shares issued

• Applications received more than shares issued

• Applications received less than shares issued

• Applications received for different shares

What is under subscription?

• Applications received equal to shares issued

• Applications received more than shares issued

• Applications received less than shares issued

• Applications received for different shares

What is calls in arrears?

• Paid amount on calls

• Unpaid amount on calls

• Total capital called up

• Total capital paid up

What is forfeiture of shares?

• Issuing shares at a discount

• Canceling shares due to unpaid calls

• Issuing shares at a premium

• Increasing the face value of shares

If a company issues 1,000 shares at a face value of Rs. 10, what is the amount recorded under capital?

• Rs. 1,000

• Rs. 10,000

• Rs. 12,000

• Rs. 8,000

If a company issues 1,000 shares at a face value of Rs. 10 but at a price of Rs. 12, what is the amount recorded under security premium reserve?

• Rs. 1,000

• Rs. 2,000

• Rs. 10,000

• Rs. 12,000

If a company issues 1,000 shares at a face value of Rs. 10 but at a price of Rs. 8, what is the amount recorded as a discount?

• Rs. 1,000

• Rs. 2,000

• Rs. 8,000

• Rs. 10,000

What amount will be recorded under capital if a company issues 1,000 shares at a face value of Rs. 10 but at a price of Rs. 8?

• Rs. 1,000

• Rs. 2,000

• Rs. 8,000

• Rs. 10,000

Where is the premium recorded when a company issues shares at a premium?

• On the asset side under fictitious assets

• On the liabilities side under the head of capital

• On the liabilities side under reserves and surplus

• On the asset side under current assets