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CA Inter C-2 redemption of Preference Shares and Issue of Bo

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following is methods of redemption of preference shares

a)

By Fresh issue of shares

b)

Capitalisation of undistributed profits

c)

Combination of (a) and (b)

d)

all of the above

2.

Redemption of Preference Shares is governed by which section of Companies Act 2013

a)

Section 45

b)

Section 55

c)

Section 56

d)

None of these

3.

Securities premium cannot be used to

a)

Issue bonus shares

b)

Redeem preference Shares

c)

Write off Preliminary expenses

d)

None of these

4.

S Ltd. issued 2,000 10 % Preference shares of Rs. 100 each at par on 1.4.20X1, which are redeemable at a premium of 10 %. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs. 100 each at a premium of 20 % per share. At the time of redemption of preference shares, the amount to be transferred by the company to the Capital Redemption Reserve account =

a)

Rs. 50,000

b)

Rs. 40,000

c)

Rs. 200,000

d)

None of these

5.

Which of the following cannot be used for the purpose of creation of capital redemption reserve account ?

a)

Profit and loss accounts (Credit balance)

b)

General reserve account

c)

unclaimed dividend Account

d)

None of these

6.

Which of the following statement is true?

a)

Capital Redemption reserve cannot be used for writing off miscellaneous expenses and losses

b)

Capital profit realized in cash cannot be used for payment of dividend

c)

Reserves created by revaluation of fixed assets are not permitted to be capitalized.

d)

None of these

7.

In Q.1 of test what is the proceed from new issue of shares to be used for redemption of preference shares

a)

200,000

b)

250,000

c)

300,000

d)

None of these

8.

In Q.1 of the test amount to be transferred to Capital redemption reserve

a)

100,000

b)

50,000

c)

Nil

d)

None of these

9.

In Q.1 of the test 14% Debentures shall also be part of proceed of fresh issue

a)

True

b)

False

c)

What rubbish

d)

None of these

10.

Which of the following section of Companies Act 2013 deals with issue of fully paid bonus shares

a)

36

b)

26

c)

63

d)

None of these

11.

In Q.2 of test amount for issue of Bonus shares shall be issued and amount to be used from Capital redemption reserve A/c ?

a)

15,000

b)

30,000

c)

55,000

d)

None of these

12.

In Q.2 of test amount for issue of Bonus shares shall be issued and amount to be used from Securities Premium A/c ?

a)

15,000

b)

30,000

c)

55,000

d)

None of these

13.

In Q.2 of test amount for issue of Bonus shares shall be issued and amount to be used from General reserve A/c ?

a)

15,000

b)

30,000

c)

55,000

d)

None of these

14.

Which of the following statement is true in case of bonus shares ?

a)

Convertible debenture holders will get bonus shares in same proportion as to the existing shareholders

b)

Bonus shares may be issued to convertible debenture holders at the time of conversion of such debentures into shares

c)

Both (a) and (b)

d)

None of these

15.

The bonus issue is not made unless

a)

Partly paid shares are made fully paid up

b)

It is provided in its articles of association

c)

Both (a) and (b)

d)

None of these