Practical MCQs of Accounting for share capital class 12

Looking for important Numerical (Practical) MCQs with answers of Accounting for share capital of Accountancy class 12 CBSE, ISC and state board.

We have compiled the MCQs on the issue of shares with answers. Apart from it
forfeiture and reissue of shares MCQs have also been given with answers.

Practical Multiple Choice Questions with answers of Accounting for share capital chapter of accountancy class 12

Lets Practice

The following amounts were payable on the issue of shares by a company: ₹ 3 on application, ₹2 on the first call, and ₹2 on the final call. S holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay a final call. Amount of calls in arrear will be:

a) ₹3,800
b) ₹2,800
c) ₹1,800
d) ₹6,200

Ans – b)

The subscribed capital of a company is ₹80,00,000 and the nominal value of the share is ₹100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares only. The balance in the calls in arrear amounted to ₹62,500. Calculate the final call on share.
a) ₹7
b) ₹20
c) ₹22
d) ₹25

Ans – d)

A shareholder holding 600 shares paid the amount of call @ ₹5 per share on 1st November 2018 whereas the call was due on 1st March 2019. Interest on calls in advance as per Table F will be:

a) ₹45
b) ₹60
c) ₹50
d) ₹120

Ans – d)

Authoried capital of a company is divided into 5,00,000 shares and ₹10 each. It issued 3,00,000 shares. Public applied for 3,60,000 shares. Amount of issued capital will be:

a) ₹30,00,000
b) ₹36,00,000
c) ₹50,00,000
d) ₹6,00,000

Ans – a)

A company invited applications for 1,00,000 shares and it received applications for 1,50,000 shares. Applications for 30,000 shares were rejected and the remaining were allotted shares on a pro-rata basis. How many shares on the applicant for 3,000 shares will be allotted?

a) 2,500 shares
b) 3,600 shares
c) 4,500 shares
d) 2,000 shares

Ans – a)

E Ltd had allotted 10,000 shares to the applications of 14,0000 shares on a pro-rata basis. The amount payable on the application was ₹2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be:

a) 60 shares, ₹120
b) 340 shares, ₹160
c) 320 shares, ₹200
d) 300 shares, ₹240

Ans – d)

If applicants for 80,000 shares were allotted 60,000 shares on a pro-rata basis, the shareholder who was allotted 1,200 shares must have applied for:

a) 900 shares
b) 3,600 shares
c) 1,600 shares
d) 4,800 shares

Ans – c)

A company offered 50,000 shares of ₹10 each at par payable as to ₹3 on applications, ₹5 on the allotment, and the balance of final call. Applications were received for 60,000 shares and the allotment was made pro-rata. The excess application money was to be adjusted on allotment and call. How much amount will be transferred from share application A/c to share allotment A/c?

a) ₹1,80,000
b) ₹30,000
c) ₹1,50,000
d) ₹50,000

Ans – b)

A company issued 4,000 equity shares of ₹10 each at par payable as under: On Application ₹3, on allotment ₹2, on first call ₹4 and on final call ₹1 per share. Applications were received for 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on the first call? Excess application money is adjusted towards due on allotment and calls.

a) ₹6,000
b) Nil
c) ₹16,000
d) ₹10,000

Ans – a)

A company issued 4,000 equity shares of ₹10 each at par payable as under: On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share. Applications were received for 10,000 shares Allotment was made pro-rata. How much amount will be received in cash on the allotment?

a) ₹8,000
b) ₹12,000
c) ₹Nil
d) None

Ans – c)

A company issued 5,000 equity shares of ₹100 each at par payable as to:
₹40 on the application; ₹50 on the allotment and ₹10 on call. Applications were received for 8,000 shares. The allotment was made on pro-rata. How much amount will be received in cash on
allotment?

a) ₹2,50,000
b) ₹1,20,000
c) ₹1,30,000
d) ₹50,000

Ans – c)

A company purchased a building for ₹3,60,000 and issued as payment equity shares at 20% premium. Journal Entry will be:

a) Building A/c Dr. 4,00,000
To Share Capital A/c 3,20,000
To Securities Premium Reserve A/c 80,000
b) Share Capital A/c Dr. 4,00,000
To Building A/c 3,60,000
To Securities Premium Reserve A/c 40,000
c) Building A/c Dr. 3,60,000
To Share Capital A/c 3,00,000
To Securities Premium Reserve A/c 60,000
d) Building A/c Dr. 3,60,000
To Share Capital A/c 60,000
To Securities Premium Reserve A/c 3,00,000

Ans – c)

A company purchased a Building for ₹12,00,000 out of which ₹2,00,000 were paid in cash. The Balance amount was paid by the issue of equity shares of ₹10 each at a 25% premium. How many shares will be issued by the company?

a) 1,00,000 Shares
b) 80,000 Shares
c) 1,20,000 Shares
d) 96,000 Shares

Ans – b)

If Shares of ₹4,00,000 are issued for purchase of assets of ₹5,00,000, ₹1,00,000 will be treated as___________

a) Discount
b) Premium
c) Profit
d) Loss

Ans – b)

A building was purchased for ₹9,00,000 and payment was made in ₹100 shares at 20% premium. Securities Premium Reserve A/c will be____________

a) Debited by ₹1,50,000
b) Credited by ₹1,50,000
c) Debited by ₹1,80,000
d) Credited by ₹1,80,000

Ans – b)

A company purchased machinery for ₹1,80,000 and in consideration issued shares at a 20% premium. What will be the face value of shares issued:

a) ₹1,50,000
b) ₹1,44,000
c) ₹1,80,000
d) ₹2,16,000

Ans – a)

On an equity share of ₹10 the company has called up ₹8 but ₹6 have been received by the company is forfeited, the capital account should be debited by:

a) ₹10
b) ₹8
c) ₹6
d) ₹2

Ans – b)

If a share of ₹10 is issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) paid is forfeited the capital account should be debited with:

a) ₹5
b) ₹8
c) ₹10
d) ₹13

Ans – c)

If a share of ₹10 is issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium is paid is forfeited, the capital account should be debited by:

a) ₹10
b) ₹7
c) ₹8
d) ₹9

Ans – c)

600 shares of ₹10 each were forfeited for non-payment of ₹2 per share on the first call and ₹5 per share on the final call. Share forfeiture account will be credited with:

a) ₹1,200
b) ₹1,800
c) ₹3,000
d) ₹4,200

Ans – b)

800 Shares of ₹10 each issued at 20% premium were forfeited for non-payment of allotment money of ₹5 (including premium) and first & final of ₹3 per share. Share forfeiture account will be credited with:

a) ₹1,600
b) ₹2,400
c) ₹3,200
d) ₹4,800

Ans – c)

800 Shares of ₹10 each issued at 30% premium (to be paid on allotment) were forfeited for non-payment of ₹2 per share on first call and ₹2 per share on final call. Share forfeiture account will be credited with:

a) ₹2,400
b) ₹4,800
c) ₹3,200
d) ₹7,200

Ans – b)

A company forfeited 300 shares of ₹10 each, ₹8 per share called up, on which X had paid application and allotment money of ₹6 per share. Share Forfeiture Account will be credited with:

a) ₹600
b) ₹1,800
c) ₹1,200
d) ₹2,400

Ans – b)

On 300 Equity shares of ₹10 the company has called up ₹8 but ₹6 have been received by the company are forfeited, the forfeiture account should be credited by:

a) ₹2,400
b) ₹1,200
c) ₹1,800
d) ₹600

Ans – c)

If 400 shares of ₹10 are issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) have been received are forfeited, the forfeiture account should be credited with:

a) ₹3,200
b) ₹2,000
c) ₹1,200
d) ₹2,800

Ans – b)

If 500 shares of ₹10 are issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium have been paid are forfeited, the forfeiture account should be credited by:

a) ₹3,000
b) ₹3,500
c) ₹4,000
d) ₹4,500

Ans – a)

A company forfeited the following shares:

200 shares of ₹10 each; called up ₹9 per share, paid-up ₹7 per share, Journal Entry for forfeiture will be):

a) Share capital A/c Dr 2,000
To Share Forfeiture A/c 200
To Calls in Arrears A/c 1,800

b) Share Capital A/c Dr 2,000
To Share Forfeitrue A/c 1,800
To Calls in Arrears A/c 200

c) Share Capital A/c Dr 1,800
To Share Forfeiture A/c 1,400
To Calls in Arrears A/c 400

d) Share Capital A/c Dr 1,800
To Share Forfeiture A/c 400
To Calls in Arrears A/c 1,400

Ans – c)

X Ltd. Forfeited 500 shares of ₹10 each, ₹7 called up, issued at a premium of ₹2 per share to be paid at the time of allotment for non payment of first call of ₹2 per share. Entry on forfeiture will be:

a) Share capital A/c Dr 3,500
Securities Premium Reserve A/c Dr 1,000
To Share First Call A/c 1,000
To Share Forfeiture A/c 3,500

b) Share capital A/c Dr 4,500
Securities premium Reserve A/c Dr 1,000
To Share First Call A/c 1,000
To Share Forfeiture A/c 4,500

c) Share Capital A/c Dr 4,500
To Share first Calle A/c 1,000
To Share Forfeiture A/c 3,500

d) Share Capital A/c Dr
To Share First Call A/c 1,000
To Share Forfeiture A/c 2,500

Ans – d)