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Worksheetsaccountancy
Total questions: 110
Worksheet time: 1hrs 23mins
which of the following is not a type of debenture
secured debenture
convertible debenture
zero coupon debenture
participative debenture
The money shareholders provide is called...
(a)
X Ltd purchase the running business of Y Ltd consist total asset of Rs. 10,00,000 liabilities of Rs. 2,00,000. X Ltd paid Rs. 2,00,000 immediately in cash and balance by issuing 7,000 share of Rs. 100 each at a premium of Rs. 20 per share. The goodwill A/c will be debited by Rs. (a) .
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
Called up Capital
Paid up Capital
uncalled Capital
Subscribed Capital
Shares may be issued :
At par value
At Premium
At Discount
Both (a) & (b)
Reserve share capital means :
Part of authorized capital to be called at the beginning
Portion of uncalled capital to be called only at liquidation
Over subscribed capital
Under subscribed capital
Which As is changed from fixed assets to property plant and Equipment
10
26
4
6
Who can issue shares through private placement?
Public Company
Private Company
Both Public and Private Company
Company issuing ESOPs
Promoters
How do you calculate number of equity shares to be issued? (formula)
(a)
ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded.
what is amount that is refunded ?
2000000
20000
200000
all of the above
Which of the following statement is false?
At maturity, debenture holders get back their money
Debentures can be forfeited for non-payment of call money
In Company's Balance Sheet, debentures are shown under the head Long term borrowings
Interest on Debentures is a charge against profit
Gama Chemicals Ltd. is a newly formed company. How much discount per share can it allow for issuing the shares to the public?
6%
10%
5%
None of these
A Ltd . issued 2,000; 9% Debentures of ₹ 100 each on the following terms:₹20 on applications ;₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected
amount to be credited in 9%debenture allotment at the time of application
40000
4000
400
none of these
X Ltd. purchased a building for ₹60,00,000 payable as 20% in Cash and balanceby allotment of 8% debentures of ₹500 each at a premium of 20%. Numberof debentures issued will be:
9600
5000
8000
10000
Discount or loss on issue of debentures is written off from
Securities premium reserve
Securities premium reserve (if it exists) and thereafter from statement of profit and loss
Statement of profit and loss
General reserve
Debenture interest is paid
At a predetermined rate
At variable rate
At a rate based on net profit of the company
At a rate as determined by the company from time to time
What is meant by a Debenture ?
Debenture is an oral acknowledgement of debt taken by company
Debenture is a written acknowledgement of debt taken by company
Debenture may be written or oral acknowledgement of debt taken by company
None of these
Borrowing cash from a bank for additional working capital
Operating
Investing
Financing
Purchasing a building
Operating
Investing
Financing
What is meant by equity?
Common Liquidity Ratios include
The current ratio
Net Profit Margin
Return on capital
Quick ratio
From financial statement analysis the creditors are interested to know
Liquidity
Profit
Efficiencies
Share capital
While preparing common-size balance sheet each item of balance sheet is expressed as percentage of
Non-current assets
Current assets
Non-current liabilities
Total assets
Which analysis is considered as dynamic
Horizontal analysis
Vertical analysis
Internal analysis
External analysis
In a company's Balance Sheet, Debit (Negative) balance of Statement of profit and loss is shown as
Non-current liabilities
Current liabilities
Non-current assets
Reserves and surplus
From the given items which is not shown under current liabilities
Trade payables
Short-term provisions
Short-term borrowings
Inventories
Revenue from operation is not taken as100 in preparing common -size statement of profit and loss.
True
False
Which of the following is not a limitation of financial statement analysis
Ignores the qualitative elements
Not free from personal bias
Intra-firm comparison
Ignores the price level changes
What is the meaning of Gross profit?
profit from providing services to customers
profit from providing money to customers
profit from providing goods to customers
profit from providing loans to customers
The options granted by the company to its employees and employee directors at a price that is lower than the market price is (a) .
Share capital of a company is divided into small units. Every unit is known as a (a) .
X Ltd. Forfeited 500 shares of ₹10 each, ₹7 called up, issued at a premium of ₹2 per share to be paid at the time of allotment for non payment of first call of ₹2 per share. Entry on forfeiture will be:
Share capital A/c Dr 3,500
Securities Premium Reserve A/c Dr 1,000
To Share First Call A/c 1,000
To Share Forfeiture A/c 3,500
Share capital A/c Dr 4,500
Securities premium Reserve A/c Dr 1,000
To Share First Call A/c 1,000
To Share Forfeiture A/c 4,500
Share Capital A/c Dr 4,500
To Share first Calle A/c 1,000
To Share Forfeiture A/c 3,500
Share Capital A/c Dr
To Share First Call A/c 1,000
To Share Forfeiture A/c 2,500
A company issued 5,000 equity shares of ₹100 each at par payable as to:
₹40 on the application; ₹50 on the allotment and ₹10 on call. Applications were received for 8,000 shares. The allotment was made on pro-rata. How much amount will be received in cash on
allotment?
₹2,50,000
₹1,20,000
₹1,30,000
₹50,000
Subscribe share capital can be less than or equal to the issued share capital but cannot be more
True
False
4000 Equity shares of Rs 10 each were issued at 8 % premium to the promoter of a company for their services. Which account will be debited?
Share capital a/c
Goodwill a/c
SPR a/c
Cash a/c
When a company issues shares at a premium, amount of premium may be received by the company :
Along with application money
Along with application money
Along with calls
Along with any of the above
Subscribe share capital can be less than or equal to the issued share capital but cannot be more
True
False
A joint stock company is :
An artificial legal person
Natural person
A general person
None of these
Securities premium received on issue of shares is credited to securities premium reserve account
True
False
Securities premium reserve can be used for issuing partly paid bonus shares
True
False
Premium on issue of shares can be used for
Issue of partly paid bonus shares
Writing of losses incurred during the year
Writing off discount/loss on issue of debentures
Writing off past losses
Which type of company can issue share to public
Public
Private
One person company
None of these
Share can be issued to public at discount
True
False
Don't know
None of these
Minimum subscription for issue of share......
90%
10%
60%
80%
Gain on reissue of forfeiture share transfer to .......
Capital reserve
Reserve capital
P/L account
None of these
Share are alloted on pro rata basis in case of ....
Oversubscription
Undersubsciption
Minimum subscription
Forfeited share
Share can be issued to employees at a discount
True
False
Don't know
None of these
Debentures redeemable after 10 years from the date of issue are shown as
Long-term borrowings
Other long-term liabilities
Short-term borrowings
Other short-term liabilities
Name the item out of the following which is shown as short-term provision
Provision for tax
Interest accrued but not due
Employees' provident fund
Interest accrued and due
Money received against share warrants is shown as
Shareholders' funds
Other long-term liabilities
Long-term provisions
Other current liabilities
Calls-in-advance and interest thereon is shown as
Shareholders' funds
Other non-current liabilities
Other current liabilities
Trade payables
Mining rights
Tangible fixed assets
Intangible fixed assets
Intangible assets under development
Capital work-in-progress
Bills payable is shown as
Long-term borrowings
Short-term borrowings
Other current liabilities
Trade payables
Surplus, i.e., Balance in Statement of profit and loss is shown as
Share capital
Reserves and surplus
Other long-term liabilities
Current liabilities
Debentures represent the
Long-term Borrowings of a Company
The Investment of Equity- Shareholders
Directors share in a Company
Short - Term Borrowings of a Company
Debenture holders are
Owners of the Company
Promoters of the Company
Debtors of the Company
Creditors of the Company
Zero Coupon Bonds are Issued
At Zero interest rate
With Specified Rate of Interest
Without Specified Rate of Interest
None
Interest Payable on Debenture is
an Appropriation of profits of the Company
a charge against profits of the Company
transferred to sinking fund investment account
transferred to general reserve
A Debenture Holder is entitled to
Fixed Dividend
Share in Profit
Voting rights in the Company
Interest at the Fixed Rate
On liquidation of a company, Principal amount of debentures is returned
First of All
Last of All
Before Equity Capital
After Equity Capital
Which of the Following is False
Debenture is a form of public borrowings
It is customary to prefix debentures with the agreed rate of interest
Debenture interest is a charge against profits
the issue price and redemption value of debentures cannot differ
Which of the following statement is false?
At maturity, debenture holders get back their money
Debentures can be forfeited for non-payment of call money
In Company's Balance Sheet, debentures are shown under the head Long term borrowings
Interest on Debentures is a charge against profit
The principal amount of debentures will be repaid by the Company either at the end of a specified period or by installments during the life time of the Company. Such types of debentures are Called
Redeemable Debentures
Irredeemable Debentures
Convertible Debentures
Bearer Debentures
IN A COMPANY'S BALANCE SHEET _________ APPEARS UNDER THE HEAD 'NON-CURRENT ASSETS'.
GOODWILL
PATENTS
VEHICLES
ALL THE ABOVE
Share Forfeiture Account appears in a Company’s Balance Sheet under the Sub-head______________
SHARE CAPITAL
RESERVE AND SURPLUS
CONTINGENT LIABILITY
COMMITMENTS
‘Claims against the Company not acknowledged as debts’ is shown under the head ……………….
CURRENT LIABILITIES
NON-CURRENT LIABILITIES
COMMITMENTS
CONTINGENT LIABILITIES
Which of the following items is shown under the head ‘Current Assets’ while preparing the Balance Sheet of a company?
Trade Investment
Underwriting Commission
Inventories
Livestock
While preparing the Balance Sheet of a company ‘Securities Premium’ is shown under :
CURRENT LIABILITY
SHARE CAPITAL
LONG TERM BORROWINGS
NONE OF THE ABOVE
While preparing the Balance Sheet of a Company which item is shown under the head ‘Long term Borrowings’?
6% Debentures
Security Premium Reserve
Trade Payable
None of the above
As per Companies Act, the Balance Sheet of a company is required to be presented in ………………………
Horizontal Form
Vertical Form
Either Horizontal or Vertical Form
Neither of the above
Calls in Arrears appear in a Company’s Balance Sheet under ………………..
Reserve & Surplus
Shareholder’s Funds
Contingent Liabilities
Short-term Borrowings
Which of the following are prohibited to issue at a discount?
Ordinary Shares
Preferred Shares
Loan Notes
Debentures are said to be issued at Discount when
I.P. = F.V.
I.P. > F.V.
I.P. < F.V.
Any of these
Debenture holders are
Owners of the company
Lenders of the company
Vendors of the company
Customers of the company
Mohar ltd. forfeited 160 shares of Rs. 10 each on which the holder had paid only the application money of Rs. 2 per share. Out of these, 40 shares were reissued to Gaurav as fully paid up for Rs. 9 per share. The gain on reissue is
Rs. 320
Rs. 160
Rs. 40
None of these
On a share of Rs. 10 issued at a premium of Rs. 2, whole amount is called-up and Rs. 7 is received, share capital account will be credited by
Rs. 10
Rs. 12
Rs. 10
Rs. 16
At the time of reissue of all forfeited shares
General reserve is debited with the credit balance left in the forfeited shares account
General reserve is credited with the credit balance left in the forfeited shares account
General reserve is credited with the credit balance left in the forfeited shares account
Capital reserve is credited with the credit balance left in the forfeited shares account
If a shareholder does not pay his dues on allotment, for the amount due, there will be
Credit balance in the share allotment account
Debit balance in the share forfeiture account
Credit balance in the shares forfeiture account
Debit balance in the shares allotment account
Authorised capital is shown in the notes to accounts on share capital
True
False
Share Capital means
Raised by issue of shares
Claimed by calling the shares
Amiunt paid by the shareholders
Uncalled capital means
Balance of authorized capital
Amount Collected later from public when required
Part of Called up capital
Is Reserved Capital a part of
Unsubscribed capital
Uncalled capital
Subscribed capital
Authorized Capital
Capital Reserve Created out of
Super profit
Average profit
Capital profit
Normal profit
Payment of Dividend will be received first by
Equity shareholders
Cumulative preference shareholders
Preference shareholders
Debentures
Who is entitled to Participate in management?
Equity shareholder
Preference shareholders
Debenture shareholder
Manager
Depreciation expense
Operating
Investing
Financing
Supplemental
Proceeds from the sale of equipment used in the business
Operating
Investing
Financing
Supplemental
Declaration and payment of dividends on company's stock.
Operating
Investing
Financing
Supplemental
An increase in the balance in Accounts Payable.
Operating
Investing
Financing
Supplemental
A decrease in the balance of Accounts Receivable.
Operating
Investing
Financing
Supplemental
Based on the above information, what amount will the corporation report as Net Cash Provided by Operating Activities on the cash flow statement?
65, 000
125, 000
155, 000
What amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement?
225, 000
235, 000
253, 000
Which is not a category of cash flow?
Operating
Investing
Financing
Current Assets
The part of the capital which can be called-up only in case of winding up of the Company is called ___________
Authorised Capital
Called up Capital
Uncalled Capital
Reserve Capital
Following amounts were payable on issue of shares by a Abtech Ltd. Rs.20 on application, Rs. 40 on allotment.
Rs. 20 on first call and Rs. 20 on final call. Raj holding 1,000 shares paid only application and allotment money whereas James holding 800 shares did not pay
final call. Amount of calls in arrears will be________.
42,000
56,000
72,000
66,000
When a company issues Debentures as collateral security, it will debit __________
Bank Account
Bank Loan Account
Debentures Suspense Account
Debentures Account
If Vendors are issued debentures of
Rs. 2,40,000 in consideration of
net assets of Rs. 3,00,000 then the balance of Rs. 60,000 will be transferred to __________
Statement of Profit & Loss
Capital Reserve Account
Goodwill Account
General Reserve Account
In case of partnership the act of any partner is :
Binding on all partners
Binding on that partner only
Binding on all partners except that particular partner
None of the above
Following are essential elements of a partnership firm except:
At least two persons
There is an agreement between all partners
An equal share of profits and losses
A partnership agreement is for some businesses.
identify the type of debenture classified on the basis of tenure
zero coupon debenture
registered debenture
secured debenture
irredeemable debenture
a company purchased a building for 7,00,000 and issued equity shares at premium of 20%
share capital a/c dr. 800,000
To building a/c 720,000
To SPR a/c 80,000
building a/c dr. 800,000
To share capital a/c 640,000
To SPR a/c 120,000
share capital a/c dr. 720,000
To building a/c 7,00,000
To SPR a/c 20,000
building a/c dr. 720,000
To share capital a/c 600,000
To SPR a/c 120,000
