corporate accounting unit 1

The minimum application money is

• 5% of face value of shares

• 10% of value of shares

• Re.1 per share

• 15% of face value of shares

premium received on issue of shares A/c shown in

• Assets side

• liabilities side

• credit side of P&L

• 
  

  Debit side of P&L

  
  

The maximum number of shares a company can issue is determined by

• Called-up capital

• Paid-up capital

• Issued capital

• Authorized capital

Which account reflects the amount received from shareholders for shares issued?

• Share Premium A/c

• Bank A/c

• Retained Earnings A/c

• Share Capital A/c

What is the term for the excess amount received over the face value of shares?

• Discount on shares

• Share premium

• Capital reserve

• Dividend

when the shares are forfeited , the share capital account is debited by

• paid up capital

• called up amount

• calls in arrear

• nominal value of such shares

The profit on reissue of forfeiture share is transferred to

• general reserve

• capital redemption reserve

• capital reserve

• profit & loss A/c

Discount on issue of shares account shown in

• Liabilities

• Assets

• P&L a/c

• none

Discount on issue of shares is a

• revenue loss

• capital loss

• deferred revenue expenditure

• none of the above

Which of the following is true about the share capital of a company?

• It is always equal to the market value of shares

• It can be reduced by issuing more shares

• It can only be increased through profits

• It represents the total funds raised by the company from shareholders