Higher Financial Accounting
(HFA)
MCQs: CAPITAL RESERVE
1. ABC Ltd. forfeited 20 Shares of Rs.10. Each Rs. 8 called up, on which A paid Application and allotment money of Rs. 2 and Rs.3 respectively. These Shares were re-issued to Y at RS. 6 fully paid. What was the balance in Share forfeiture A/C before Shares were reissued?
A. Rs. 40
B. Rs. 60
C. Rs. 100
D. Rs. 160
2. The directors of E Limited made the final call of Rs.50 per share on 1st August 2014 indicating the last date of payment of call money to be 31st August. Mr. White holding 5,000 Shares paid the call money on October 15th 2014. If the company adopts Table A, the amount of interest on calls-in-arrears to be paid by Mr. White would be
A. Rs. 3,125
B. Rs. 1,562.50
C. Rs. 1,875
D. Rs. 1,500
3. If a Company is not able to refund the excess amount of Share within the reasonable time. The Company will give them interest
A. 15% p.a.
B. 5%
C. 7% p.a.
D. 10% p.a.
4. Voluntary return of Shares for cancellation by the Shareholders is called:
A. Surrender of Shares
B. Forfeiture of Share
C. Cancellation of Share
D. Distribution of Shares
5. A Ltd forfeited 1,000 equity shares of RS. 10 each issued at a discount of 10% for Non payment of first call of Rs.2 and second call of Rs. 3 per share. For recording This forfeiture, calls in arrear will be credited by:
A. Rs.4,000
B. Rs. 1,000
C. Rs. 5,000
D. Rs. 10,000
6. The Directors of a limited Company resolved to forfeit 1000 shares of RS.10 each, Rs. 7.50 paid up, for non-payment of the final call money of Rs. 2.50 per share 700 of these shares were re-issued at Rs.7 per share. The amount to be transferred to Capital Reserve A/c would be
A. Rs.2,500
B. Rs.3,150
C. Rs.3,500
D. Rs.5,400
7. B Ltd forfeited 500 shares of Rs.10 each fully called up for non payment of first call of Rs. 2 per share. All these shares were reissued as fully paid for Rs. 8 per share. Amount transferred to Capital reserve will be
A. Rs.3000
B. Rs.1800
C. Rs.1500
D. None of the three
8. X Ltd forfeited 30 shares of Rs.10 each fully called-up for non-payment of allotment of Rs.3 per share and call money of Rs.4 per share. These shares are re-issued for Rs.8 per share fully paid. What is the amount to be transferred to Capital Reserve Account?
A. Rs.300
B. Rs.60
C. Rs.30
D. Rs.90
9. A Company forfeited 2,000 shares of Rs.10 each (which, were issued at par) held by A for non payment of allotment money of Rs.4 per share. The called up value per share was Rs.9. On forfeiture, the amount debited to share Capital is:
A. Rs.10,000
B. Rs.8,000
C. Rs.2,000
D. Rs.18,000
10. The rate of interest paid on calls in advance as per table A is:
A. 5% p.a
B. 6% p.a
C. 10% p.a
D. 4% p.a
11. The Directors of a Company forfeited 1,000 shares of Rs.10 each, Rs. 7.50 paid up, For non-payment of final call money of Rs. 2.50 per share, 700 of these shares are re-issued @Rs.7 per share. The amount transferred to Capital Reserve A/C would be-
A. Rs. 2,500
B. Rs. 3,150
C. Rs. 3,500
D. Rs. 5,400
12. A Ltd acquired assets worth' 15,00,000 from H Ltd by issue of shares of 100@ Premium of 25%. The number of shares issued to settle the purchase consideration will be-
A. 12,000 Shares
B. 15,000 Shares
C. 18,750 Shares
D. 11,250 Shares
13. The excess price received over the par value of shares, should be credited to:
A. Calls-in-advance A/c
B. Share Capital A/c
C. Capital Reserve A/c
D. Securities Premium A/c
14. 500 shares of Rs.20 each issued at 5% discount are forfeited for non-payment of Allotment and final call money Rs. 9 and Rs. 5 respectively Amount credited to share Forfeit A/c is:
A. Rs. 2,000
B. Rs. 2,500
C. Rs. 3,000
D. Rs. 7,000
15. If the issue size is upto 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
16. The minimum subscription as prescribed by SEBI against the entire issue is
A. 95%
B. 90%
C. 5%
D. None
17. X was issued 100 shares of Rs.10 each at a premium of Rs.1, he paid application Money and allotment money which in total amounted to Rs.5 (excluding premium) and failed to pay the balance call money of Rs.5. Find the maximum discount that can be given at the time reissue of shares:
A. Rs. 4 per Share
B. Rs. 5 per Share
C. Rs. 2 per Share
D. Rs. 6 per Share
18. Securities premium is shown under which head in the Balance sheet,
A. Current Liabilities
B. Miscellaneous expenditure
C. Reserves and surplus
D. None of these
19. J Ltd re-issued 2,000 shares which were forfeited by crediting share forfeiture A/C by RS.3,000. These shares were reissued at Rs. 9 per share. The amount transferred to Capital Reserve will be:
A. Rs. 3,000
B. Rs. 2,000
C. Rs.1,000
D. NIL
20. G Ltd. accquired assets worth Rs.75,000 from H Ltd. by issue of share of Rs.10 each at A premium of Rs.5. The number of shares to be issued by G Ltd. to settle the purchase Consideration:
A. 6,000 Shares
B. 7,500 Shares
C. 9,375 Shares
D. 5,000 Shares
21. A Company invited application for subscription of 5,000 shares. The application were received for 6,000 shares. The shares were allotted on pro-rata bases. If Shyam applied for 180 shares, How many shares would be allotted to him?
A. 180
B. 200
C. 150
D. 175
22. If vendors are issued fully paid shares of Rs.1,00,000 in consideration of net assets of Rs.1,20,000, the balance of Rs.20,000 will be credited to:
A. Goodwill A/c
B. Capital Reserve A/c
C. Vendor's A/c
D. Profit and loss A/c
23. When shares are issued to promoters which A/c should be debited
A. Share Capital A/c
B. Assets A/c
C. Promoters A/c
D. Goodwill A/c
24. Share allotment A/c is a:
A. Real A/c
B. Nominal A/c
C. Personal A/c
D. Company A/c
25. 10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs.2 per share Applications were received for 12,000 shares. Amount of securities premium A/c will be:
A. Rs. 20,000
B. Rs. 24,000
C. Rs. 4,000
D. Rs. 1,600
26. X, who holds 100 shares of Rs.10 each, fails to pay final call of Rs.2 per share. The Directors forfeited all the shares and subsequently re-issued 50 shares of Rs.10 each as fully paid on payment of Rs.4 per shares. The amount to be transferred to Capital Reserve would be
A. Rs. 200
B. Rs.100
C. Rs.400
D. Rs.500
27. Jadu Ltd reissued 2,000 shares, which were forfeited by crediting share forfeiture A/c by Rs.3,000. These shares were reissued Rs.9 per share as fully paid up at Rs.10 Per share. The amount to be transferred to Capital Reserve A/c will be
A. Rs.3,000
B. Rs.2,000
C. Rs.1,000
D. Nil
28. Mr. Big who was the holder of 200 equity shares of Rs.100 each on which Rs.75 per share has been called up could not pay his dues on allotment and first call each at Rs.25 per share. The Directors forfeited the above shares and reissued 150 of such Shares to Mr. Small at Rs. 65 per share paid-up as Rs.75 per share. The amount to be transferred to Capital Reserve A/c will be
A. Rs. 1,500
B. Rs. 2,250
C. Rs. 5,000
D. Nil
29. 600 shares allotted to Mr. X, on which Rs.100 each called up, and Rs.50 paid up were forfeited and reissued for Rs.70 each as fully paid up. Amount transferred to capital Reserve A/c is
A. Rs. 12,000
B. Rs. 15,000
C. Rs. 30,000
D. Rs. 18,000
30. A Ltd makes an issue of 10,000 equity Shares of Rs.100 each, payable as follows
• On application and allotment Rs.50
• On first call Rs.25
• On second and final call Rs.25
Members holding 400 Shares did not pay the second call and the Shares are duly forfeited, 300 of which are reissued as Fully paid at 60 per Share. Amount transferred to Capital reserve will be
A. 16,500
B. 15,000
C. 15,000
D. None of the three
31. Virender Ltd Forfeited 20 shares of Rs. 100 each (Rs.60 called up) issued at par to Ram on which he had paid Rs.20 per share. All the forfeited shares were reissued to syam as Rs.60 paid up for Rs.45 per share. Amount transferred to Capital reserve will be
A. Rs. 150
B. Rs. 100
C. Rs. 75
D. Rs. 60
32. Deepak Ltd Forfeited 40 shares of 100 each (Rs. 60 called up) issued at par to mukesh on which he had paid Rs. 20 per share, Out of these 30 shares were reissued to survey, as Rs.60 paid up for Rs.45 per share. Amount transferred to Capital reserve will be
A. Rs.150
B. Rs.100
C. Rs.200
D. Rs.120
33. V.K. Ltd Forfeited 20 shares of Rs. 100 each (Rs. 60 called up) issued at par to Mohan on which he had paid Rs.20 per share. Out of these 15 shares were reissued to sohan as Rs.60 paid up for Rs.45 per share. Amount transferred to Capital reserve will be
A. Rs.100
B. Rs.75
C. Rs.200
D. Rs.80
34. A Ltd forfeited 400 Shares of Anil of Rs. 10 each fully called up for non-payment of final call of 2 per Share and reissued to Sunil as fully paid for 710 per share. Amount transferred to Capital Reserve will be
A. Rs. 32000
B. Rs. 3000
C. Rs. 2800
D. None of the three
35. MAR Ltd. forfeited 300 shares of Rs.10/-each fully called up for non-payment of final call money of Rs.4/- per share. These shares are subsequently reissued for Rs.12 per share as fully paid up. What amount should be transferred to capital reserve account
A. Rs.2400
B. Rs.3000
C. Rs.1800
D. Rs.3600
36. D Ltd forfeited 800 Shares of Rs.10 each fully called up, on which the holder has paid only application money of Rs.3 per share. Out of these, 500 Shares were reissued as Rs.11 per Share fully paid up. Capital Reserve will be credited by
A. Rs.1500
B. Rs.1800
C. Rs.2000
D. None of the three
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