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Worksheets

company accounts

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

The liability of members is only limited to the value of shares held by them. this is ___________.

a)

liability limited by shares

b)

limited liability

c)

unlimited liability

d)

liability at will

2.

__________is created out of uncalled capital.

a)

reserve capital

b)

capital reserve

c)

called up capital

d)

subscribed capital

3.

_________ is created out of capital profits.

a)

reserve capital

b)

capital reserve

c)

called up capital

d)

subscribed capital

4.

Amount of capital stated in MoA of company as its registered Capital

a)

Authorised Capital

b)

Share Capital

c)

Reserve Capital

d)

Paid up Capital

5.

In the absence of any information , it is assumed that Securities Premium is due alongwith _________

a)

Application Money

b)

Allotment Money

c)

Call Money

d)

As per convenience

6.

Amount of Securities Premium Reserve may be used only for

a)

Writing off preliminary expenses

b)

Buy back of its own shares

c)

issuing fully paid bonus shares

d)

writing off discount allowed on issue of shares or debentures

e)

all of the above

7.

As per table F Of Schedule I of Companies Act 2013, the amount to be called up on application or on any call shall not exceed ___% of total quantum of the issue

a)

20%

b)

25%

c)

30%

d)

35%

8.

Preliminary expenses include

a)

Exp. incurred on preparation & printing of various documents

b)

duty payable on authorised capital

c)

cost of preliminary expenses

d)

stamp duty & registration fee

e)

all of the above

9.

Promoters of company may be issued shares for the services rendered by them. the entry will be:

a)

Incorporation cost a/c Dr.

To Share capital a/c

b)

Formation Exp. a/c Dr.

To Share capital a/c

c)

Either of the above

d)

None of the above

10.

Company may allot shares to underwiters to pay their commission. the Entry will be

a)

Underwriting commission A/c dr.

To Underwriters A/c

b)

Vendor A/c Dr.

to Share Capital A/c

c)

No entry is required

d)

Either of the Above

11.

Balance of Purchase Consideration is Debited to

a)

Capital A/c

b)

Capital Reserve A/c

c)

Goodwill A/c

d)

Bank A/c

12.

If rate of interest on Calls in advance is not mentioned in the question, It will be

a)

6%

b)

10%

c)

12%

d)

15%

13.

When number of shares applied for is more than the that offered for subscription is called

a)

Under Subscription

b)

Over subscription

c)

Pro rata

d)

Shareholders fund

14.

Investment in Shares & debentures of company which are quoted on a recognized stock exchange are called

a)

Listing

b)

Quoted investment

c)

trading on shares

d)

stock exchange

15.

Zee ltd. purchased its own 5,000 7% debenturesof Rs.100 each from open market at Rs.96 each for immediate cancellation.

Profit on redemption will be

a)

5,00,000

b)

4,80,000

c)

20,000

d)

35,000

16.

Sakshi Ltd. purchased for immediate cancellation its own 3,000, 9% debentures of Rs. 100 each redeemable at 5% premium for Rs. 107.

amount of loss will be

a)

21000

b)

15,000

c)

6,000

d)

36,000

17.

Profit on redemption of debentures is transferred to which account.

a)

Reserve capital A/c

b)

Capital Reserve A/c

c)

Debenture Redemption Reserve A/c

d)

DRI A/c

18.

A ltd. wants to redeem 5,000 , 5% debentures of Rs. 100 each at 5% premium .

How much amount it must transfer to DRR, if it already had a balance of 10,000 in DRR A/c.

a)

25,000

b)

1,15,000

c)

40,000

d)

50,000

19.

2000, 12% debentures

interest payable half yearly

amount of interest will be debited to P&L will be

a)

24000

b)

12,000

c)

6000

d)

3000

20.

Debenture issued as collateral security will be debited to

a)

bank A/c

b)

Debenture A/c

c)

Debenture Suspense A/c

d)

Profit & Loss A/c