Accountancy MCQ – Class 12 – Chapter 9 – Accounting for Share Capital

Following are class 12 accountancy MCQ for Chapter 9 accounting for Share Capital. Practice and prepare for your first term exams for 2021-22 session.

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1. The part of authorized capital which can be called up only on the company being wound up is called:

 
 
 
 

2. The first stage of incorporating a company is:

 
 
 
 

3. Those preference shares which do not carry the right to receive arrears of divided:

 
 
 
 

4. ESOP offered by company will create / retain:

 
 
 
 

5. Pick the odd one out:

 
 
 
 

6. A company forfeited 4,000 shares of Rs. 10 each on which application money of Rs 3 has been paid . Out of these 2,000 shares were reissued as fully paid up and Rs 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued:

 
 
 
 

7. Vanya Ltd. Forfeited 20,000 equity shares of Rs 100 each for non – payment of first and final call of Rs 40 per share. The maximum amount of discount at which these share can be re-issued will be :

 
 
 
 

8. Jagdeesh Ltd. Forfeited 160 shares of 10 each on which the holder had paid only the application money of Rs 2 share. Out of these, 40 shares were reissued as fully paid-up for Rs 9 share. The gain on reissue is:

 
 
 
 

9. Avishkar Ltd. Issued 10,000 equity shares of 100 each a t a premium of 20%. Mamta, who has been allotted 2000 shares did not pay first and final call of 5 per share. On forfeiture of Mamta’s share, amount debited to Securities Premium Reserve Account will be

 
 
 
 

10. Which of the following is not a purpose for which the securities premium amount can be used?

 
 
 
 

11. Name the head of Capital Clause of Memorandum of Association of a company in which maximum amount of share capital mentioned is called _____.

 
 
 
 

12. The part of un-called capital, to be called only in the liquidation of a company is called:

 
 
 
 

13. A shareholder allotted to whom 9,000 shares of ₹ 10 per share failed to pay first & final of ₹ 2 per share. ₹ 18,000 to be recorded in the books of company with _____

 
 
 
 

14. Share Allotment Account is a/an:

 
 
 
 

15. Balance in share forfeiture account is shown in the balance sheet under the head of:

 
 
 
 

16. Pick the odd one out:

 
 
 
 

17. 12,000 shares of ₹ 100 each forfeited due to non-payment of ₹ 40 per share. First & final call of ₹ 30 per share not yet made. These shares were reissued at ₹ 80 per share for ₹ 70 per share. Which of the following journal entry is correct for the re-issue of forfeiture of shares?