Company Accounts

203 Questions | By Sweetsalman123 | Last updated: Mar 21, 2022 | Total Attempts: 589

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1.

Discount on issue of debentures is a____________
- A.
  
  Revenue loss to be charged in the year of issue
- B.
  
  Capital loss to be written off from capital reserve
- C.
  
  Capital loss to be written off over the tenure of the debentures
- D.
  
  Capital loss to be shown as goodwill
2.

Loss on issue of debentures is treated as__________ .
- A.
  
  Intangible asset
- B.
  
  Current asset
- C.
  
  Current liability
- D.
  
  Miscellaneous expenditure
3.

Dividends are usually paid as a percentage of_______
- A.
  
  Authorized share capital
- B.
  
  Net profit
- C.
  
  Paid-up capital
- D.
  
  Called-up capital
4.

A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr. John 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 will be
- A.
  
  Rs.10,000
- B.
  
  Rs.8,000
- C.
  
  Rs.2,000
- D.
  
  Rs.18,000
5.

S Ltd. issued 2,000,10% Preference shares of Rs.100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs.100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be
- A.
  
  Rs.50,000
- B.
  
  Rs.40,000
- C.
  
  Rs.2,00,000
- D.
  
  Rs.2,20,000
6.

W Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be
- A.
  
  Rs.40,000
- B.
  
  Rs.10,000
- C.
  
  Rs.20,000
- D.
  
  Rs.8,000
7.

W Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be
- A.
  
  Rs.40,000
- B.
  
  Rs.10,000
- C.
  
  Rs.20,000
- D.
  
  Rs.8,000
8.

T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%. The debentures account will be credited with
- A.
  
  Rs.2,60,000
- B.
  
  Rs.2,50,000
- C.
  
  Rs.2,40,000
- D.
  
  Rs. 1,60,000
9.

B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by
- A.
  
  Rs.90
- B.
  
  Rs.81
- C.
  
  Rs.60
- D.
  
  Rs.54
10.

G Ltd. acquired assets worth Rs.7,50,000 from H Ltd. by issue of shares of Rs.100 at a premium of 25%. The number of shares to be issued by G Ltd. to settle the purchase consideration will be
- A.
  
  6,000 shares
- B.
  
  7,500 shares
- C.
  
  9,375 shares
- D.
  
  5,625 shares
11.

The subscribed share capital of S Ltd. is Rs.80,00,000 of Rs.100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares. The calls in arrear amounted to Rs.62,500. The final call on share will be
- A.
  
  Rs.25
- B.
  
  Rs.7.80
- C.
  
  Rs.20
- D.
  
  Rs.62.50
12.

F Ltd.purchased Machinery from G Company for a book value of Rs.4,00,000.The consideration was paid bi issue of 10 % debentures of Rs.100 each at a discount of 20 % .The debenture account was credited with
- A.
  
  Rs.4,00,000
- B.
  
  Rs.5,00,000
- C.
  
  Rs.3,20,000
- D.
  
  Rs.4,80,000
13.

P Ltd. issued 5,000,12% debentures of Rs.100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption Of debentures to be written off every year is
- A.
  
  Rs.80,000
- B.
  
  Rs.40,000
- C.
  
  Rs.10,000
- D.
  
  Rs.8,000
14.

T Ltd. has issued 14% Debentures of Rs.20,00,000 at a discount of 10% on April 01, 2004 and the company pays interest half-yearly on June 30, and December 31 every year. On March 31, 2006, the amount shown as "interest accrued but not due" in the Balance Sheet will be
- A.
  
  Rs.70,000 shown along with Debentures
- B.
  
  Rs.2,10,000 under current liabilities
- C.
  
  Rs.1,40,000 shown along with Debentures
- D.
  
  Rs.2 80,000 under current liabilities
15.

On May 01, 2003, Y Ltd. issued 7% 40,000 convertible debentures of Rs.100 each at a premium of 20%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for theD ,year ended March 31, 2004 will be
- A.
  
  Rs.2,80,000
- B.
  
  Rs.2,33,333
- C.
  
  Rs.3,36,000
- D.
  
  Rs.2,56,667
16.

A company cannot issue redeemable preference shares for a period exceeding
- A.
  
  6 years
- B.
  
  7 years
- C.
  
  8 years
- D.
  
  20 years
17.

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro 24 rata basis. The amount payable on application is Rs.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; Rs.120
- B.
  
  340 shares; Rs.160
- C.
  
  320 shares; Rs.200
- D.
  
  300 shares; Rs.240
18.

Z Ltd. issued 10,000 shares of Rs.10 each. The called up value per share was Rs.8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs.2 per share. He paid Rs.6 for application and allotment moneys On forfeiture, the share capital account will be ________.
- A.
  
  Debited by Rs.2,000
- B.
  
  Debited by Rs. 1,600
- C.
  
  Credited by Rs. 1,600
- D.
  
  Debited by Rs. 1,200
19.

A to whom 100 shares of Rs.10 each was allotted at par, paid Rs.3 on application, Rs.3 On allotment but could not pay the first and final call money of Rs.4. His shares were forfeited by the directors. The amount to be credited to shares forfeited account will be
- A.
  
  Rs.500
- B.
  
  Rs.400
- C.
  
  Rs.600
- D.
  
  Rs.1,000
20.

The following information pertains to X Ltd. Equity share capital called up Rs.5,00,000 Calls in arrear Rs. 40,000 Calls in advance Rs. 25,000 Proposed dividend 15% The amount of dividend payable = ?
- A.
  
  Rs.75,000
- B.
  
  Rs.72,750
- C.
  
  Rs.71,250
- D.
  
  Rs.69,000
21.

Brave Ltd. issued 60,000 shares of Rs. 10 each at a discount of Re. 1 per share. The application money was Rs. 2, allotment money was Rs. 4, and first call was of Re.1. The amount of final call will be
- A.
  
  Rs.3
- B.
  
  Rs.2
- C.
  
  Re.1
- D.
  
  Nil
22.

Asha Ltd. issued shares of Rs. 100 each at a premium of 25%. Mamta, who has 2,000 shares of Asha ltd., failed to pay first and final call totalling Rs.5. Premium was taken by Asha Ltd. at the time of allotment. On forfeiture of Mamta's shares, the amount to be debited to Share premiumaccount will be
- A.
  
  Rs.5,000
- B.
  
  Rs.10,000
- C.
  
  Rs.15,000
- D.
  
  Nil
23.

Jadu Ltd. reissued 2,000 shares, which were forfeited by debiting Share for feiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will be
- A.
  
  Rs.3,000
- B.
  
  Rs.2,000
- C.
  
  Rs. 1,000
- D.
  
  Nil
24.

Sure Ltd. issued 5,000,15% Debentures of Rs.100 each at a premium of Rs.10 each. These debentures were to be redeemed at a premium of Rs.4 each after 5 years. The amount to be credited to the debenture premium account will be
- A.
  
  Rs.25,000
- B.
  
  Rs.50,000
- C.
  
  Rs.40,000
- D.
  
  Rs.60,000
25.

Light Ltd. has 10,000 5% preference shares of Rs. 10 each to be redeemed after 5 years. The company forfeited 500 preference shares on which final call of Rs 2 has not been received, after due.notice and cancelled these shares on account of redemption. Remaining shares were redeemed out of reserves of the company. The amount to be credited to capital redemption reserve will be
- A.
  
  Rs.1,00,000
- B.
  
  Rs. 95,000
- C.
  
  Rs. 99,000
- D.
  
  Rs. 99,500