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Issue of Share Part 1

Total questions: 20

Worksheet time: 3hrs 20mins

Name
Class
Date
1.

Who are the real owners of a company?

a)

Government

b)

Board of Directors

c)

Equity shareholders

d)

Preference sharejolders

2.

The capital of a company is divided into units which are called :

a)

Debenture

b)

Share

c)

Stock

d)

Bond

3.

Shareholders receive from the company :

a)

Interest

b)

Profit

c)

Commission

d)

Dividend

4.

To whom the dividend is given at a fixed rate in a company?

a)

To equity shareholders

b)

To preference shareholders

c)

To debenture holders

d)

To promoters

5.

Preference shareholders have

a)

Preferential right as to dividend only

b)

Preferential right in the management

c)

Preferential right as to repayment of capital at the time of liquidation of the company

d)

Preferential right as to dividend and repayment of capital at the time of liquidation of the Company

6.

The shares on which there is no pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such shares are called :

a)

Equity Share

b)

Non-cumulative preference share

c)

Non-convertible preference share

d)

Non-participating preference share

7.

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

8.

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

9.

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%

10.

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

11.

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

12.

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

13.

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

14.

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

15.

Shares Application &Allotment A/c is a:-

a)

Personal

b)

Real

c)

Nominal

16.

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

17.

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

18.

Dividends are usually paid on:

a)

Authorised Capital

b)

Issued Capital

c)

Called up Capital

d)

Paid Up Capital

19.

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

20.

The application money should be refund within _______ days from the closure of the issue.

a)

30 days

b)

7 days

c)

15 days

d)

45 days