WorksheetsRedemption of Preference Shares
Total questions: 18
Worksheet time: 9mins
A share is a share in the _______ of the company.
share capital
board of directors
memorandum
annual report
A share which gets preference over equity in payment of dividend and repayment of capital at the time of winding up of the company is called _______.
Preference share
Equity share
Debenture
Bonus share
An equity share is a share which is not a _______ share.
preference
bonus
right
debenture
Which of the following is NOT a type of preference share?
Cumulative
Convertible
Participating
Ordinary
Cumulative preference shares get dividend accumulated until it is paid by the company.
True
False
Non-cumulative preference shares get dividend accumulated if it is not paid in a particular year.
True
False
Convertible preference shares have an option of getting converted into _______ shares on a future date, at the option of the shareholder.
equity
preference
debenture
bonus
Non-convertible preference shares do not have any such _______ option.
conversion
voting
redemption
dividend
Participating preference shares have the right to participate in the _______ profit of the company.
surplus
net
gross
dividend
Redeemable preference shares are repaid after completion of term of shares.
True
False
Irredeemable preference shares are repaid only at the time of _______ of the company.
winding up
annual general meeting
issue of shares
declaration of dividend
Divisible profits are the profits which can be used for distribution of _______.
Dividend
Salary
Bonus
Interest
When preference shares are redeemed, the share capital of the company will _______.
reduce
increase
remain the same
fluctuate
CRR can be utilised only for issuing fully paid _______ shares.
bonus
equity
preference
debenture
Fill in the blank: The journal entry for creation of CRR is
Divisible profit To CRR
CRR To Divisible profit
Profit & Loss To CRR
CRR To Profit & Loss
What is the journal entry for the amount paid to preference shareholders?
Preference shareholders To Bank
Bank To Preference shareholders
Profit & Loss Appropriation To Preference shareholders
Preference shareholders To Profit & Loss Appropriation
What is the journal entry for writing off premium on redemption (POR)?
Divisible profits To POR
POR To Divisible profits
Bank To POR
POR To Bank
What is the journal entry for bonus transferred when issuing bonus shares?
Bonus to shareholders To Equity share capital
Equity share capital To Bonus to shareholders
Bonus to shareholders To Securities premium
Profit and Loss Account To Equity share capital
