NCERT Class 12 Accountancy MCQ Chapter 5 Accounting for Share Capital Solutions, AHSEC Class 12 Accountancy Multiple Choice Question Answer to each chapter is provided in the list so that you can easily browse throughout different chapters NCERT Class 12 Accountancy MCQ Chapter 5 Accounting for Share Capital Question Answer and select needs one.
NCERT Class 12 Accountancy MCQ Chapter 5 Accounting for Share Capital
Also, you can read the SCERT book online in these sections NCERT Class 12 Accountancy Multiple Choice Solutions by Expert Teachers as per SCERT (CBSE) Book guidelines. AHSEC Class 12 Accountancy MCQ Solutions. These solutions are part of SCERT All Subject Solutions. Here we have given HS 2nd Year Accountancy Objective Type Question Answer for All Subjects, You can practice these here.
Accounting for Share Capital
Chapter: 5
| PART – ⅠⅠ |
MULTIPLE CHOICE QUESTION ANSWER
1. Under which Act are the affairs of the company governed?
(i) Companies Act, 1990.
(ii) Companies Act, 2013.
(iii) Companies Act, 2000.
(iv) Companies Act, 1980.
Ans: (ii) Companies Act, 2013.
2. Who manages the affairs of the company?
(i) Shareholders.
(ii) Government.
(iii) Board of Directors.
(iv) Employees.
Ans: (iii) Board of Directors.
3. What is the capital of a company contributed by?
(i) Government.
(ii) Shareholders.
(iii) Board of Directors.
(iv) Employees.
Ans: (ii) Shareholders.
4. What is the capital of a company usually raised in the form of?
(i) Loans.
(ii) Shares and Debentures.
(iii) Donations.
(iv) Government grants.
Ans: (ii) Shares and Debentures.
5. What distinguishes a company from other forms of organization?
(i) It has a separate legal entity.
(ii) It is governed by a single individual.
(iii) It operates without any legal provisions.
(iv) It does not require any capital.
Ans: (i) It has a separate legal entity.
6. A company issues 1,000 shares of ₹10 each at par. The total amount received for the shares is:
(i) ₹10,000
(ii) ₹1,000
(iii) ₹100,000
(iv) ₹1,000,000
Ans: (i) ₹10,000
8. A company forfeits 200 shares of ₹10 each on which ₹8 has been paid up. The journal entry for the forfeiture of these shares will include:
(i) Debit Share Capital ₹2,000; Credit Forfeited Share Account ₹2,000.
(ii) Debit Share Capital ₹2,000; Credit Share Allotment ₹2,000.
(iii) Debit Forfeited Share Account ₹1,600; Credit Share Capital ₹1,600.
(iv) Debit Forfeited Share Account ₹200; Credit Share Capital ₹200.
Ans: (iii) Debit Forfeited Share Account ₹1,600; Credit Share Capital ₹1,600.
9. A company issued 2,000 shares of ₹20 each at a discount of ₹5. The journal entry for the discount on issue of shares would be:
(i) Debit Cash ₹30,000; Credit Share Capital ₹40,000; Credit Discount on Issue of Shares ₹10,000.
(ii) Debit Cash ₹30,000; Credit Share Capital ₹40,000.
(iii) Debit Cash ₹35,000; Credit Share Capital ₹40,000.
(iv) Debit Cash ₹40,000; Credit Share Capital ₹30,000.
Ans: (i) Debit Cash ₹30,000; Credit Share Capital ₹40,000; Credit Discount on Issue of Shares ₹10,000.
10. What right does a company have as a legal entity?
(i) It can sign personal contracts.
(ii) It can sue or be sued in its name.
(iii) It can dissolve itself without any legal process.
(iv) It can transfer its ownership without legal formalities.
Ans: (ii) It can sue or be sued in its name.
11. A company issues 5,000 shares of ₹10 each at a premium of ₹5. What is the total amount received on issue of shares?
(i) ₹50,000
(ii) ₹75,000
(iii) ₹100,000
(iv) ₹25,000
Ans: (ii) ₹75,000
12. What is the liability of the members of a company?
(i) Unlimited liability.
(ii) Limited to the extent of unpaid shares.
(iii) Limited to the amount of investment.
(iv) Liability based on the company’s revenue.
Ans: (ii) Limited to the extent of unpaid shares.
13. Which of the following types of companies limits the liability of its members to the extent of the nominal value of shares held by them?
(i) Companies Limited by Guarantee.
(ii) Companies Limited by Shares.
(iii) Unlimited Companies.
(iv) One Person Company.
Ans: (ii) Companies Limited by Shares.
14. If a company issues shares of ₹100 each at a premium of ₹20, and a shareholder fails to pay the second call of ₹30, the journal entry for the forfeiture of those shares will include:
(i) Debit Share Capital ₹100; Credit Calls in Arrears ₹30; Credit Share Premium ₹20.
(ii) Debit Share Capital ₹100; Credit Calls in Arrears ₹30.
(iii) Debit Share Capital ₹70; Credit Share Premium ₹20.
(iv) Debit Calls in Arrears ₹30; Credit Forfeited Share Account ₹30.
Ans: (ii) Debit Share Capital ₹100; Credit Calls in Arrears ₹30.
15. Which of the following types of companies limits the liability of its members to the extent of the nominal value of shares held by them?
(i) Companies Limited by Guarantee.
(ii) Companies Limited by Shares.
(iii) Unlimited Companies.
(iv) One Person Company.
Ans: (ii) Companies Limited by Shares.
