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Issue of Shares

Total questions: 16

Worksheet time: 11mins

Name
Class
Date
1.

Dividends are usually paid on:

a)

Authorised Capital

b)

Issued Capital

c)

Called up Capital

d)

Paid Up Capital

2.

As per the Companies Act, 2013, only preference shares which are redeemable within _________ can be issued.

a)

24 Years

b)

25 Years

c)

30 Years

d)

20 Years

3.

Promotion Expenses are also known as -

a)

Preliminary Expenses

b)

Revenue Expenses

c)

Capital Expenses

d)

Answer is not among the Options

4.

Figure out the Order -

1. Issued Capital

2. Subscribed Capital

3. Authorised Capital

4. Paid Up Capital

5. Called Up Capital

a)

2, 3, 5, 1, 4

b)

2, 1, 3, 5, 4

c)

3, 1, 2, 5, 4

d)

3, 2, 1, 4, 5

5.

When a company receives share application money, the entry will be-

a)

Debit Bank a/c ; Credit Share Capital a/c

b)

Debit Share Capital a/c ; Credit Bank a/c

c)

Debit Application a/c ; Credit Bank a/c

d)

Debit Bank a/c ; Credit Share Application a/c

6.

Rate of dividend is fixed in case of ________.

a)

Equity Share Capital

b)

Preference Share Capital

c)

Both the Options are possible

d)

Answer is not among the options provided

7.

Tara Ltd. issued 120,000 shares. The issued was subscribed for 110,000 shares. This is a case of ______.

a)

Full Subscription of Shares

b)

Undersubscription of Shares

c)

Oversubscription of Shares

8.

What is the minimum amount of shares that has to be subscribed in an IPO? (Initial Public Offer)

a)

95%

b)

90%

c)

100%

d)

80%

9.

Which of the following is not a feature of a company?

a)

Limited Liability

b)

Sane Person

c)

Official Signatory

d)

Perpetuity

10.

Ralph Ltd. issued 150,000 shares at Rs. 10 per share with a premium of Rs. 2 per share payable Rs. 3 on application, Rs. 5 on allotment (including premium) and balance on the first call. Applications were received for 120,000 shares. Calculate the amount received by Ralph Ltd. on application.

a)

Rs. 450,000

b)

Rs. 750,000

c)

Rs. 600,000

d)

Rs. 360,000

11.

Which format of the Financial Statements is followed by companies today?

a)

Schedule II of the Companies Act, 2013

b)

Schedule III of the Companies Act, 1956

c)

Schedule II of the Companies Act, 1956

d)

Schedule III of the Companies Act, 2013

12.

Where will Incorporation Expenses be shown in the Financial Statements of a Company?

a)

Income Statement

b)

Position Statement

c)

Cash and Cash Equivalents

d)

Current Assets

13.

The minimum application money to be paid by an applicant alongwith application money should not be less than ___ of the issue price.

a)

25%

b)

20%

c)

15%

d)

30%

14.

When Shares are issued at a premium, the same will be credited to ________ a/c.

a)

Share Capital

b)

To the Particular Call

c)

Securities Premium

d)

Capital Reserve

15.

What are the types of share capital? Check all that apply.

a)

Issued Capital

b)

Equity Share Capital

c)

Called Up Capital

d)

Paid Up Capital

e)

Preference Share Capital

16.

What is the Full Form of SEBI?

a)

Securities Exchange Beureau of India

b)

Shares Exchange Board of India

c)

Securities Exchange Board of India

d)

None of the options are correct