Issue, Forfeiture and Reissue of Forfeited Shares
- Which documents is prepared at the time of incorporation of companies.
(a) Memorandum of Association
(b) Prospectus
(c) Articles of Association
(d) Promoters’ statement - The amount of capital with which the company is registered with the Registrar of the Companies is called as
(a) Authorized capital
(b) Share premium
(c) Issued capital
(d) Fixed capital - Reserve share capital means:
(a) Part of authorized capital to be called at beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Oversubscribed capital
(d) Under subscribed capital - Capital Reserve is created out of :
(a) Capital Profit
(b) Revenue profit
(c) Capital Receipt
(d) Revenue Receipt - The difference between subscribed capital and called –up capital is called:
(a) Calls in arrears
(b) Calls in advance
(c) Uncalled capital
(d) None of the above - Which of the following should be deducted from the share capital to find out paid up capital of a company ?
(a) Calls-in-advance
(b) Calls-in-arrears
(c) Shares forfeited
(d) Discount on issue of share - The part of share capital which can be called up only on the winding up of a company is called:
(a) Authorized capital
(b) Called up capital
(c) Capital Reserve
(d) Reserve Capital - The amount of capital that is mentioned in capital clause is known as:
(a) Authorized capital
(b) Registered capital
(c) Nominal capital
(d) All of these - Which of the following statement is false?
(a) Issued capital can never be more than the authorized capital
(b) In the case of under subscription issued capital is less than subscribed capital
(c) Uncalled capital may be converted into reserve capital
(d) Paid up capital is equal to called up capital less calls in arrears - Which statement is issued before the issue of shares?
(a) Prospects
(b) Memorandum of association
(c) Articles of association
(d) All of these - Select the incorrect statement –
(a) Dividends rate for ordinary shareholders is not fixed
(b) The payment of dividends to shareholders is a legal obligation
(c) Ordinary shareholders are generally called owners of residue
(d) Preference shareholders receive dividend at fixed rate - Dividend are usually paid on :
(a) Authorized capital
(b) Issued capital
(c) Called – up – capital
(d) Paid – up – capital - Shares of a company can be reissued at –––––––––?
(a) Premium
(b) Discount
(c) Par
(d) Any of these - The excess price receive over the par value of shares, would be credited to:
(a) Call –in- advance account
(b) Share capital account
(c) Capital reserve account
(d) Security premium account - In Case of issue of shares, amount received above par value is credited to which account?
(a) Security premium A/c
(b) Discount A/c
(c) Share forfeited A/c
(d) None of these - The amount received over and above the par value is credited to which account?
(a) Share Capital Account
(b) Calls –in- advance Account
(c) Securities Premium Account
(d) Share forfeited Account - Securities premium is shown under which head in the balance sheet.
(a) Current liabilities
(b) Miscellaneous expenditure
(c) Reserve and surplus
(d) None of these - According to section 52 (2) of the companies Act, the amount in the Securities premium A/c cannot be used for the purpose of:
(a) Issue of fully paid bonus shares
(b) Written off losses of the company
(c) Writing off preliminary expenses
(d) Written off commission or discount on issue of shares - Security premium can be used by the company.
(a) To adjust loss on Revaluation of assets.
(b) To issue of fully paid Bonus shares
(c) To pay dividend
(d) To adjust trading loss - The sweat equity shares are allotted to …………………… .
(a) Investors
(b) Employees
(c) Vendors
(d) Promoters - Shares allotment account is a :
(a) Real account
(b) Nominal account
(c) Personal account
(d) Company account - As per the Companies Act, a company cannot proceeds to allot share unless –––––– is received by the company.
(a) Minimum money
(b) Allotment money
(c) Application money
(d) Call money - The minimum subscription as prescribed by SEBI against the entire issue is:
(a) 95%
(b) 90%
(c) 5%
(d) None - If minimum subscription is not received application money should be refunded with in how many days?
(a) 15
(b) 90
(c) 10
(d) 30 - If a company is not able to refund the excess amount of shares within the reasonable time. The company will give them interest @:
(a) 15 % p.a.
(b) 5 % p.a.
(c) 7 % p.a.
(d) 10 % p.a. - When full amount is due on any call but it is not received, then the shortfall is debited to-
(a) Calls in advance
(b) Calls in arrears
(c) Share capital
(d) Suspense account - The rate of interest paid on calls in advance as per table F is:
(a) 5% p.a.
(b) 12% p.a.
(c) 10% p.a.
(d) 4% p.a. - According to Companies Act, 2013, interest on calls in arrears and calls in advance can be charged and provided, the maximum rates for which are:
(a) 4% p.a. and 5% p.a.
(b) 5% p.a. and 4% p.a.
(c) 6% p.a. and 7% p.a.
(d) 10% p.a. and 12% p.a. - When shares are issued to promoters which account should be debited:
(a) Shares capital A/c
(b) Assets A/c
(c) Promoters A/c
(d) Goodwill A/c - Which of the following account is affected, when share are issued to promoters ?
(a) Preliminary expenses account
(b) Share premium account
(c) Goodwill account
(d) Promoters personal account - When shares are issued for purchase of assets, –––––––– should be credited
(A) Vendor’s A/c
(B) Sundry Assets A/c
(C) Share capital A/c
(D) Bank A/c - Voluntary return of shares for cancellation by the shareholders is called.
(a) Surrender of shares
(b) Forfeited of shares
(c) Cancellation of shares
(d) Distribution of shares - . Compulsory cancellation of shares by the company due to non‐payment of allotment or call money or calls in arrears is exist called …………….
(a) Surrender of Shares
(b) Buy back of shares
(c) Forfeiture of shares
(d) All of these - The shares of a company only can be forfeited after giving a ………days notice
(a) 21
(b) 14
(c) 7
(d) 30 - The power of forfeiture of shares is exercise by –
(a) Promoters of the company
(b) Directors as per rules and regulations provided in the Articles of Association
(c) The shareholder at annual general meeting
(d) The government - Discount on reissue of forfeited shares should not exceed ………….
(a) Amount forfeited
(b) Face value
(c) Issued price
(d) Market price - Discount on re-issue of shares forfeited cannot exceed the –––––––:
(a) 50% of face value
(b) Face value
(c) 50% of amount forfeited
(d) Amount forfeited - The profit remaining after issue of forfeited shares, in share forfeited account will be transferred to –––––––
(a) Profit and Loss A/c
(b) Share capital A/c
(c) General Reserve A/c
(d) Capital Reserve A/c - When shares are issued at a premium and the amount is already received by company. Later on when such share are forfeited:
(a) Premium A/c should be debited
(b) Premium A/c should be credited
(c) Premium A/c is not affected
(d) None of these. - If the issue size is up to Rs. 500 crores, the issued shares should be made fully paid up within –––– of the date of allotment:
(a) 6 months
(b) 10 months
(c) 12 months
(d) 18 months - Which of the following statement is true ?
(a) Authorized Capital = Issued Capital
(b) Authorized Capital > Issued Capital
(c) Paid up Capital ≥ Issued Capital
(d) None of the above - Which of the following will define, when appropriation of a certain number of shares is made to an applicant in response to his application ?
(a) Share Allotment
(b) Share forfeiture
(c) Share trading
(d) Share purchase - If the number of shares offered to public for subscription is less than the number of applications received, it is termed as
(a) Minimum Subscription
(b) Over Subscription
(c) Under Subscription
(d) Maximum Subscription