Matching Type MCQs of Accounting for share capital Class 12
Looking for important Matching type MCQs with answers of Accounting for share capital chapter of Accountancy class 12 CBSE, ISCE and other state Board.
We have compiled important Matching Type Multiple Choice Questions with answers of issue of shares chapter of volume 2 accountancy class 12
Matching Type Multiple Choice Questions with answers of Accounting for share capital chapter class 12
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Match the following:
| Column – I | Column – II |
| i) Share application & Allotment account | A – Personal Account |
| ii) Securities Premium Reserve account | B – Real Account |
| C – Nominal Account |
Options
a) i) – A, ii) – C
b) i) – B, ii) – A
c) i) – C, ii) – B
d) i) – B, ii) – A
Ans – a)
Explanation:-Share application and allotment account is the personal account as they represent money from the shareholders. Securities premium reserve account is the nominal account as tey represents loss and gain to the business concern.
Match the following:
| Column – I | Column – II |
| i) Amount of capital stated in M.O.A | A – Issued Capital |
| ii) Entire Money called up and paid | B – Authorised capital |
| C – Called up capital | |
| D – Subscribed and fully paid up |
Options
a) i) – B, ii) – D
b) i) – A, ii) – B
c) i) – C, ii) – A
d) i) – D, ii) – B
Ans – a)
Explanation:- Authorised capital is the amount that a company can issue to the general public and is mentioned is memorendom of association. When entire amount called up and paid up by the company. It is disclosed under the head of ‘subscribed and fully paid up’.
Match the following:
| Column – I | Column – II |
| i) – A company can issue shares | A – for cash |
| B – For consideration other than cash | |
| C – Both a) and b) |
Options
a) i) – A
b) i) – C
c) i) – B
Ans – c)
Match the following:
| Column – I | Column – II |
| i) Shares issued to promoters | A – Issue expenses |
| ii) Shares issued to underwriters | B – Incorporation cost |
| C – Underwriting Commission | |
| D – Call in arrears |
Options
a) i) – B, ii) – C
b) i) – A, ii) – B
c) i) – C, ii) – A
d) i) – D, ii) – C
Ans – a)
Match the following:
| Column – I | Column – II |
| i) Shares issued by the company to its employees or directors at a discount. | A – Reserve Capital |
| ii) Option is given to employees or directors to purchase shares at a future date | B – Capital Reserve |
| C – Sweat Equity Share | |
| D – ESOP |
Options
a) i) – A, ii) – B
b) i) – B, ii) – C
c) i) – C, ii) – D
d) i) – A, ii) – B
Ans – c)
Read Here:- What is Sweat Equity Shares class 12
Read Here:- What are Employees Stock option plan class 12
Match the following:
| Column – I | Column – II |
| i) – Amount called but not paid by the shareholders | A – Call in advance |
| ii) Amount not called up but paid by the shareholders | B – Called up capital |
| C – Paid-up capital | |
| D – Calls in Arrear |
Options
a) i – C, ii – D
b) i – B, ii – C
c) i – A, ii – B
d) i – D, ii – A
Ans – d)
Match the following:
| Column – I | Column – II |
| i) – What is the treatment of share forfeited account in the balance sheet | A – Added |
| ii) – What is the treatment of calls in arrears in the Balance Sheet | B – Deducted |
Options
a) i – A, ii – B
b) i – B, ii – A
Ans – a)
Explanation:- Forfeited account amount is added to the share capital and Calls in arrears amount is subtracted out of share capital in notes to accounts.
Match the following:
| Column – I | Column – II |
| i) – Purchase consideration is more than net worth | A – Capital Reserve |
| ii) – Purchase consideration is less than net worth | B – Assets |
| iii) – When shares are issued for consideration other than cash, account debited will be | C – Goodwill |
| D – Vendor |
Options
a) i – C, ii – A, iii – D
b) i – A, ii – B, iii – C
c) i – B, ii – C, iii – B
d) i – C, ii – A, iii – B
Ans – a)
Match the following:
| Column – I | Column – II |
| i) Actual number of shares offered to the public | A – Authorised Capital |
| ii) Maximum number of shares above which a company can not issue shares to the public | B – Issued Capital |
| C – Subscribed Capital | |
| D – Uncalled Capital |
Options
a) i – B, ii – A
b) i – A, ii – B
c) i – C, ii – D
d) i – D, ii – A
Ans – a)
Match the following:
| Column – I | Column – II |
| i) The amount of nominal capital that is offered to the public | A – Subscribed Capital |
| ii) The amount of nominal capital that can not be issued | B – Issued Capital |
| C – Reserve Capital | |
| D – Paid up Capital |
Options
a) i – D, ii – A
b) i – B, ii – C
c) i – A, ii – B
d) i – C, ii – A
Ans – b)
Explanation:-Share capital issued to the public is called issued capital. Share capital not issued to the public is called Reserve Capital.
Match the following:
| Column – I | Column – II |
| i) Interest on Calls in Arrears | A – 12% |
| ii) Interest on Calls in Advance | B – 10% |
| iii) Interest on Partner’s Loan | C – 6% |
Options
a) i) – C, ii) – B, iii) – A
b) i) – B, ii) – A, iii) – C
c) i) – A, ii) – B, iii) – C
d) i) – B, ii) – C, iii) – A
Ans – b)
Match the following:
| i) At the time of forfeiture of shares share capital is debited with | A – Amount received |
| ii) At the time of forfeiture of shares share forfeiture is credited with | B – Amount not received |
| iii) At the time of forfeiture of shares calls in arrears is credited with | C – Amount called |
Options
a) i) – B, ii) – A, iii) – C
b) i) – C, ii) – B, iii) – A
c) i) – C, ii) – A, iii) – B
d) i) – A, ii) – B, iii) – C
Ans – c)
Match the following:
| Column – I | Column – II |
| i) Capital Reserve | A – Created out of uncalled capital |
| ii) Reserve Capital | B – Created out of revenue profits |
| C – Created out of capital profits |
Options
a) i) – C, ii) – A
b) i) – A, ii) – B
c) i) – B, ii) – C
d) i) – C, ii) – A
Ans – a)
Match the following:
| Column – I | Column – I |
| i) When shares are forfeited which account is debited | A – Incorporation cost |
| ii) When the shares are issued to promoters which account is debited | B – Share Capital |
| iii) When the shares are forfeited which accounts is credited | C – Calls in Arrears |
| D – Capital Reserve |
Options
a) i) – A, ii) – B, iii) – C
b) i) – B, ii) – A, iii) – C
c) i) – C, ii) – B, iii) – A
d) i) – A, ii) – C, iii) – D
Ans – b)
Match the following:
| Column – I | Column – II |
| i) – Maximum amount of discount at the time of reissue of shares | A – Amount Received |
| ii) Minimum amount at which shares can be reissued | B – Amount not Received |
| C – Amount Demanded | |
| D – Calls in Advance |
Options
a) i) – A, ii) – B
b) i) – B, ii) – A
c) i) – C, ii) – D
d) i) – C, ii) – A
Ans – a)
Match the following
| Column – A | Column – B |
| i) A company forfeited 2,000 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) on which ₹8 is called up. The company did not receive ₹4 on the allotment and ₹2 on the first call. What amount will be debited to the share capital account? | A – ₹12,000 |
| ii) A company forfeited 2,000 shares of ₹10 each issued at 20% premium ( to be paid at the time of allotment) on which ₹2 for the final call was not yet called and ₹2 for the first call was not paid. What amount will be credited to the forfeiture account? | B – ₹16,000 |
| C – ₹20,000 |
Options
a) i) – B, ii) – B
b) i) – A, ii) – B
c) i) – B, ii) – C
d) i) – C, ii) – A
Ans – d)
Match the following:
| Column – I | Column – II |
| i) A company forfeited 1,000 shares of ₹10 each, ₹7 called up for non-payment of ₹2 on the first call. 300 of these shares were reissued at ₹5 per share. What amount will be debited to share forfeiture A/c | A – ₹1,500 |
| ii) A company forfeited 2,000 shares of ₹10 each, ₹7 called up for non-payment of ₹2 on the first call. 300 of the shares were reissued at ₹6 per share fully paid. What amount will be debited to Share Forfeiture A/c? | B – ₹600 |
| C – ₹300 | |
| D – ₹1200 |
Options
a) i) – B, ii) – D
b) i) – A, ii) – B
c) i) – C, ii) – A
d) i) – D, ii) – C
Ans – a)
Match the following:
| Column – I | Column – II |
| i) A company forfeited 2,000 shares of ₹10 each issued at par, ₹8 called-up per share, ₹2 per share was not paid. What will be the amount with which the share Forfeiture account is credited? | A – ₹12000 |
| ii) A company forfeited 2,000 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) on which ₹2 for the final call was not yet called and ₹2 for the first call was not paid. What amount will be credited to the share forfeiture account? | B – ₹16,000 |
| C – ₹20,000 |
Options
a) i) – A, ii) – A
B) i) – B, ii) – C
Ans – a)
Match the following:
| Column – I | Column – II |
| A – Actual number of shares offered to the public | i) Authorised Capital |
| B – Maximum number of shares above which the company can not issue shares to the public | ii) Issued Capital |
| C – Number of shares applied by the public | iii) Uncalled Capital |
| D – The amount which is called at the time of liquidation of the company | iv) Subscribed Capital |
Options
a) A – ii), B – i), C – iv), D – iii)
b) A – i), B – ii), C – iii), D – iv)
c) A – iv), B – iii), C – ii), D – i)
d) A – iii), B – iv), D – i), D – ii)
Ans – a)
Match the following.
| Column – I | Column – II |
| A – When shares are issued more than face value. | i) At par |
| B – Application received from the public is less than issued share | ii) At a premium |
| C – When shares are issued at face value | iii) Under subscription |
| D – Application received from the public is more than issued share | iv) Over-subscription |
Options
a) A – ii), B – i), C – iv), D – iii)
b) A – ii), B – iii), C – i), D – iv)
c) A – iv), B – iii), C – ii), D – i)
d) A – iii), B – iv), C – i), D – ii)
Ans – b)
Match the following.
| Column – I | Column – II |
| A – Capital to be called up only on liquidation of the company | i) Capital Reserve |
| B – Profit of forfeiture of shares is transferred to | ii) Reserve Capital |
| C – Intellectual property right | iii) Debenture holders |
| D – Creditors of the company | iv) Sweat Equity shares |
Options
a) A – ii), B – i), C – iv), D – iii)
b) A – i), B – ii), C – iii), D – iv)
c) A – iv), B – iii), C – ii), D – i)
d) A – iii), B – iv), C – i), D – ii)
Ans – a)
Match the following.
| Column – I | Column – II |
| A – Minimum Subscription | i) 25% of the issue price |
| B – Application money should not be less than | ii) 12% p.a. |
| C – Interest on calls in advance | iii) 10% p.a. |
| D – Interest on calls in arrear | iv) 90% |
Options
a) A – ii), B – i), C – iv), D – iii)
b) A – i), B – ii), C – iii), D – iv)
c) A – iv), B – i), C – ii), D – iii)
d) A – iii), B – iv), C – i), D – ii)
Ans – c)
