Croporate Accounting Quiz

When shares are issued at a price higher than their face value, it is called:

• A. Issue at par

• B. Issue at discount

• C. Issue at premium

• D. Forfeiture of shares

The amount which a shareholder is required to pay at the time of applying for shares is called:

• A. Application money

• B. Allotment money

• C. Call money

• D. Premium

Which account is credited when shares are issued at a premium?

• Share Capital Account

• Bank Account

• Share Premium Account (Securities Premium Account)

• Profit and Loss Account

Shares issued to promoters or directors for their services are called:

• Bonus shares

• Right shares

• Sweat equity shares

• Preference shares

If a shareholder fails to pay a call money, the company may:

• Allot more shares

• Cancel all shares issued

• Forfeit the shares

• Transfer the shares

Which of the following is a valid use of the Securities Premium Account?

• Paying dividends

• Issuing bonus shares

• Buying raw materials

• Distributing profits

A company issued 10,000 equity shares of ₹10 each at par. The entire amount was payable on application. The company received applications for 12,000 shares. What will be the amount refunded?

• ₹20,000

• ₹10,000

• ₹15,000

• ₹5,000

X Ltd issued 5,000 shares of ₹10 each at a premium of ₹2. If the amount is payable as ₹5 on application (including ₹1 premium), ₹4 on allotment (including ₹1 premium), and balance on first and final call, what is the amount received on allotment?

• ₹25,000

• ₹20,000

• ₹15,000

• ₹10,000

A company forfeits 100 shares of ₹10 each, ₹7 called up, on which the shareholder paid only ₹3 per share. What is the forfeiture amount?

• ₹700

• ₹300

• ₹1,000

• ₹400

A company issued 2,000 shares of ₹10 each at a premium of ₹2. The issue price is:

• ₹12

• ₹10

• ₹8

• ₹2