Accounting for Companies : Mock Test – 02

1. TPT Ltd. had forfeited 2,000 equity shares of ₹ 10 each for non-payment of Second and Final call of ₹ 3 per share. It reissued 300 of these shares and transferred ₹ 2,100 to capital reserve. Forfeited shares are reissued for:

2. Shares issued by a company to its employees or director at a discount are called _________

3. PQR Ltd. has 5,000, 8% debentures of ₹ 20 each, issued at a discount of 5%. The interest on debentures to be credited to debenture holders:

4. Which of the following statements is true?

5. A plant costing ₹ 4,50,000 is purchased and payment was made by issue of shares of ₹ 100 each at a premium of 20%. The Securities Premium A/c will be _______________.

6. The principle amount of debentures will be repaid by the company either at the end of a specified period or by instalments during the lifetime of the company  such type of debentures are called:

7. ABC Ltd. purchased net assets of ₹ 8,83,500 from PQR Ltd. and issued 9% debentures of ₹ 100 each at a discount of 5%. Number of debentures issued for consideration other than cash are:

8. Assertion (A): Debentureholders get interest from the Company

Reason (R): Debenture interest is treated as an appropriation of profit.

9. Statement I: Debentures are shown as Long-term Borrowings in the Balance Sheet.

Statement II: Debenture holders are paid dividend at a fixed rate.

10. The liability of shareholders of a public limited company is limited to:

11. Reserve Capital is not a part of:

12. The debentures where principal amount is not repayable by the company during its lifetime, but payment is made only at the time of liquidation of the company,  such debentures are called:

13. H Ltd. had allotted 20,000 shares to the applicants of 28,000 shares on pro-rata basis. The amount payable on application was ₹ 2 per share. S applied for 840 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from S will be:

14. Reserve Capital is not a part of:

15. When debentures are issued at par and are redeemable at a premium, the loss on such issue is debited to :

16. While issuing __________ type of Debentures, company doesn’t give any undertaking for the repayment of money borrowed by issuing such debentures.

17. Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of premium and to be redeemed at 10% premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and Loss was debited with ₹ 2,00,000. At what rate of premium, these debentures were issued?

18. ABC Ltd. issues 10,000; 9% debentures of ₹ 100 each at a premium of 5% payable at a premium of 10%, the loss on issue of debentures account will be debited by:

19. A Limited Company issued equity shares of  100 each. It has called up  75 on each share but received only  60 per share. The share capital account will be credited with:

20. Dividend is given at a fixed rate in a company to:

21. Debentures of ₹ 4,25,000 are issued against the purchase of assets of ₹ 4,50,000 in full settlement. In this, ₹ 25,000 will be supposed to be:

22. Premium on redemption of debentures is a:

23. The maximum amount with which the company is registered is called ___________.

24. PP Ltd. invited applications for issuing 10,000 equity shares of ₹ 10 each. Applications for 9,500 shares were received and allotment was made to all the applicants. Ravi a shareholder holding 200 shares failed to pay allotment money and his shares were forfeited. Mohan to whom 100 shares were allotted failed to pay the first call and his shares were forfeited immediately after the first call was made. Afterwards the second and final call was made. The second and final call will be due on how many shares?

25. Accounts Guru Ltd. issued 12,000 shares of ₹ 10 each for cash payable as

On Application — ₹ 3

On Allotment — ₹ 2

On First and Final call — ₹ 5

Application received for 10,000 shares only.

Mr. John holding 700 shares paid the remaining face value of shares alloted to him on allotment. Mr. Kabeer holding 300 shares did not pay any amount due on his shares after application. The amount of calls in Arrears and calls in Advance at the time of allotment of shares will be:

26. William Pens Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of ₹ 4. It has a balance in Securities Premium of ₹ 25,000. It will write off Discount on Issue of Debentures:

27. 250 shares of  20 each on which first and final call of  6 per share is not paid is forfeited. Out of these, 200 shares are reissued for  14 per share fully paid up. The amount transferred to capital reserve will be:

28. If Vendors are issued debentures of ₹ 4,40,000 in consideration of assets of ₹ 5,00,000 and liabilities of ₹ 1,00,000, the balance of ₹ 40,000 will be debited to:

29. Electronics Ltd. issued 10,000; 6% Debentures of ₹ 100 each at a premium of ₹ 10. It will credit 6% Debentures Account by:

30. A company issued 1000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:

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

32. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue:

33. Debenture is:

34. As per the provisions of Companies Act, a company can issue__________.

35. If debentures of ₹ 4,50,000 are issued for the consideration of net assets of ₹ 5,00,000 balance ₹ 50,000 will be credited to:

36. Alfa Ltd. issued 20,000, 8% debentures of ₹ 10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:

37. When shares are forfeited, share capital account is debited by:

38. Amount collected as premium on securities cannot be utilized for:

39. If 50 shares of ₹ 10 each, ₹ 9 called (including a premium of ₹ 2) is forfeited due to non payment of first call of ₹ 2 per share, then share capital will be debited by:

40. Those preference shares which do not enjoy the right to share additional profits come under the category of: