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Accounting for issue of shares

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

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

2.

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

3.

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

4.

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%

5.

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

6.

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

7.

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

8.

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

9.

share application a/c Dr

to share capital

what does this entry mean ?

a)

Receipt of application money

b)

refund of application money

c)

transfer of application money

10.

share application a/c....................Dr

To share capital a/c

To Bank a/c

a)

applications totally refused for allotment

b)

applications rejected in full and making Pro-rata allotment to the rest

c)

applications are made partial allotment

11.

Which of the following capital is not shown in the company’s Balance Sheet

`

a)

Authorised capital

b)

Issued &subscribed capital

c)

Called-up & paid up-capital

d)

Reserve capital

12.

Shares Application &Allotment A/c is a:-

a)

Personal

b)

Real

c)

Nominal

13.

The portion of authorized capital which can be called up only on the liquidation of the company :-

a)

Authorised capital

b)

Reserve capital

c)

Issued capital

d)

Called up capital

14.

When the shares are issued for consideration other than cash which account will be debited


a)

Securities Premium

b)

Capital Reserve A/c

c)

Vendor A/c

d)

Share Capital A/c

15.

ltd company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for purchase consideration worth Rs. 12,00,000 how much amount will be debited to goodwill account

a)

Rs. 10,00,000

b)

Rs. 5,00,000

c)

Rs. 3,00,000

d)

Rs. 12,00,000

16.

A Company allotted 20,000 shares to applicants of 50,000 shares after rejecting 10,000 applications. The ratio in which company allotted the share will be

a)

5:2

b)

5:3

c)

2:1

d)

3:1

17.

A Co. has issued 6,000 equity shares of. Rs. 10 each at par and called up amount Rs. 6 per share. The remaining part of capital is termed as

a)

Called up Capital

b)

Paid up Capital

c)

uncalled Capital

d)

Subscribed Capital

18.

Amount of discount given at the time of reissue of shares should be debited to :


a)

Shares Capital

b)

Discount on Shares

c)

Share Forfeiture A/c

d)

Calls-In-Areas A/c