CLASS 12 ACCOUNTANCY CH 8 ACCOUNTING FOR SHARES CBSE TERM 1 EXAM OBJECTIVE QUESTIONS MCQ'S TEST

Hello Students we are providing mcqs of class 12 Accountancy lesson 8 Accounting for Share capital These objective questions is very helpful for your study because these question cover a wide topic and easy to understand

Why mcqs of class 12 Accountancy lesson 8 Accounting for Share capital is important ?

these mcqs are important because these questions cover a wide topic of the chapter
mcqs are easy to understand
mcqs break the big topic in some small topic so they are easy to learn
they give a short revision at the time of class 12 Accountancy exam

How to get pdf of class 12 Accountancy lesson 8 Accounting for Share capital mcqs

We are providing 3 types of format from where you can learn and download the mcqs of class 12 Accountancy Accounting for Share capital

1. You can watch our video on Youtube

2. You can get mcqs at our website

3. you can download pdf of mcqs

We have provided objective questions of class 12 Accountancy lesson 8 Accounting for Share capital with answers these questions help to understand the concept very easy for student

Increasing role of mcqs in board exam

recently many examination board have declared that their question paper of exam contain more than 25% objective questions so by the marks purpose mcqs of class 12 Accountancy lesson 8 Accounting for Share capital is very important

We hope that the provided mcqs of class 12 Accountancy lesson 8 Accounting for Share capital are very helpful for your study and you get full marks in class 12 Accountancy exam if you have any queries about objective questions of class 12 Accountancy chapter 8 Accounting for Share capital you can comment below the post or you can go to our contact us page

Question 1

If there are lesser profits, then the amount of dividend is _________.

A.lesser

B.fixed

C.higher

D.none of these

SOLUTION

Solution : A

If there are lesser profits, then the amount of dividend is lesser.

Question 2

Which shareholders are given priority over the other shareholders for dividend or repayment of the capital of the company?

A.Preference Shareholders

B.Equity shareholders

C.No such priority

D.Both Equity and Preference Shareholders

SOLUTION

Solution : A

Preference Shareholders are given priority over the other shareholders for dividend or repayment of the capital of the company.

Question 3

Liability of shareholder is limited to _____________ of the shares allotted to him.

A.paid up value

B.called up value

C.face value

D.reserve price

SOLUTION

Solution : C

Liability of shareholder is limited to face value of the shares allotted to him.

Question 4

Equity Shares cannot be issued for the purpose of?

A.Cash receipts

B.Purchase of Assets

C.Redemption of debentures

D.Distribution of dividend

SOLUTION

Solution : D

Equity shares cannot be issued for the purpose of distribution of dividend

Question 5

Share application account shows the balance of ___________.

A..amount received on allotment

B.amount received on calls

C.amount received on application

D.none of these

SOLUTION

Solution : C

Share application account shows the balance of amount received on application

Question 6

Maximum limit of Premium on shares is?

A.5%

B.10%

C.No limit

D.100%

SOLUTION

Solution : C

Maximum limit of Premium on shares is - No limit.

Question 7

Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be :

A.Rs. 3,800

B.Rs. 2,800

C.Rs. 1,800

D.Rs. 6,200

SOLUTION

Solution : B

Amount of Calls in arrear will be

=500*(2+2) + 400*2

=(500*4) + 800

=2,000+800

= Rs 2,800

Question 8

The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is 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 only. The balance in the calls in Arrear amounted to 62,500. Calculate the final call on share.

A.Rs. 7

B.Rs. 20

C.Rs. 22

D.Rs. 25

SOLUTION

Solution : D

The final call on share :

Total shares

=80,00,000/100

=80,000

Share for Calls in Arrear

=80,000-77,500

=2,500

Calls in Arrear for final call per share

=62,500/500

= Rs 25

Question 9

In case a company does not have sufficient funds for the purchase of fixed assets or for payment to creditors it may offer and allot its shares to vendor/ creditors in lieu of cash. In such a case, which account is debited ?

A.Goodwill account

B.Share application account

C.Share capital account

D.Vendor/ Creditor`s account

SOLUTION

Solution : D

Vendor/ Creditor`s account is debited in such a case.

Question 10

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration. Which of the following is true ?

A.None of these

B.Share capital account shall be debited with Rs 2,50,000

C.Share capital account shall be credited with Rs 2,50,000

D.Share capital account shall be credited with Rs 5,000

SOLUTION

Solution : C

VG Ltd Dr 2,50,000

To Equity share Capital A/c 2,50,000 ( 5,000 x 50 )

Question 11

Who are the real owners of the company?

A.Equity Shareholders

B.Preference Shareholders

C. Chief Financial Officer

D. Chief Executive Officer

SOLUTION

Solution : A

Equity Shareholders are the real owners of the company.

Question 12

The profits that remain after paying the preference dividend fully belong to whom?

A.Equity Shareholders

B.Preference Shareholders

C. Chief Financial Officer

D. Chief Executive Officer

SOLUTION

Solution : A

Equity shareholders share the remaining profits.

Question 13

A shareholder holding 600 shares paid the amount of call @ Rs. 5 per share on 1st November 2013 whereas the call was due on 1st March 2014. Maximum interest on calls in advance will be :

A.Rs.150

B.Rs. 120

C.Rs. 50

D.Rs. 60

SOLUTION

Solution : B

Maximum interest on calls in advance will be

= 600*5*12%*4/12

= Rs 120

Question 14

E ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was Rs. 2 and balance on allotment. 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.300 shares; Rs. 2400

B.300 shares; Rs. 240

C.300 shares; Rs. 960

D.320 shares; Rs. 200

SOLUTION

Solution : B

No. of shares allotted to F

=420 * 10,000/14,000

= 300

The amount carried forward for adjustment against allotment money due from F will be

= (420-300) *2

= 120* 2

= Rs 240

Question 15

Shares issued for consideration other than cash means ___

A.None of these

B.Shares are not issued

C.Shares are issued but something other than money is received

D.Shares are issued but nothing is received

SOLUTION

Solution : C

Shares issued for consideration other than cash means shares are issued but something other than money is received.

Question 16

Can securities premium be used as working capital?

A.None of these

B.Not sure

C.No

D.Yes

SOLUTION

Solution : C

Securities premium cannot be used as working capital.

Question 17

The extra money above the face value received from shareholders is termed as _______

A.Fixed capital

B.Issued capital

C.Securities Premium

D.Authorised capital

SOLUTION

Solution : C

The extra money above the face value received from shareholders is termed as securities premium.

Question 18

A share is the ___of a member in a company.

A.None of these

B.Asset

C.Right

D.Interest

SOLUTION

Solution : D

A share is the interest of a member in a company.

Question 19

Shares issued for consideration other than cash can be issued at ___

A.All of these

B.Discount

C.Premium

D.Par

SOLUTION

Solution : A

Shares issued for consideration other than cash can be issued at par, premium or discount.

Question 20

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration. Calculate the no of shares issued.

A.4,000

B.3,000

C.2,000

D.5,000

SOLUTION

Solution : D

Number of shares issued = Purchase consideration /Value per share

Number of shares issued = 2,50,000/50

Number of shares issued = 5,000

Question 21

Who bears the loss of the company?

A.Equity Shareholders

B.Preference Shareholders

C. Chief Executive Officer

D. Chief Financial Officer

SOLUTION

Solution : A

Equity shareholders bears the loss of the company.

Question 22

Is it possible that some shareholders do not pay installment amount due on allotment or calls?

A.Yes, it is possible.

B.No, it is not possible

SOLUTION

Solution : A

Yes, it is possible that some shareholders do not pay installment amount due on allotment or calls.

Question 23

Securities premium once received __________

A.Cannot be cancelled

B.Can be cancelled

C.Can be raised

D.None of these

SOLUTION

Solution : A

Securities premium once received cannot be cancelled.

Question 24

Securities premium account cannot be utilized for _________.

A.writing off any preliminary expenses of the company

B.writing off expenses of issue of shares and debentures

C.providing for the premium that is payable on the redemption of debentures

D.none of these

SOLUTION

Solution : D

Securities premium can be utilized for all of the mentioned options i.e.

writing off any preliminary expenses of the company

writing off expenses of issue of shares and debentures

providing for the premium that is payable on the redemption of debentures

Question 25

Shares are alloted after _________

A.asking for first call amount

B.issue of prospectus

C.asking for final call amount

D. receiving application money

SOLUTION

Solution : D

Shares are alloted after receiving application money

Question 26

Authorised capital is known as …………..

A.Nominal capital

B.Called up capital

C.Susbcribed capital

D.Issue Capital

SOLUTION

Solution : A

Authorised capital is also called nominal or registered capital.

Question 27

It is that part of the subscribed capital which has been called up on the shares. It is known as ___

A.Nominal capital

B.Called up capital

C.Susbcribed capital

D.Authorised capital

SOLUTION

Solution : B

Called up capital is that part of the subscribed capital which has been called up on the shares.

Question 28

Which of the following capital can be increased or decreased as per the procedure laid down in the Companies Act.

A.None of these

B.Called up capital

C.Susbcribed capital

D.Authorised capital

SOLUTION

Solution : D

The authorised capital can be increased or decreased as per the procedure laid down in the Companies Act.

Question 29

That portion of the subscribed capital which has not yet been called up is known as ___

A.Reserve capital

B.Capital reserve

C.Un-called capital

D.None of these

SOLUTION

Solution : C

That portion of the subscribed capital which has not yet been called up is known as un-called capital.

Question 30

___________ are profits of the company that are agreed to be distributed to the shareholders of the company

A.Dividend

B.Interest

C.Share capital

D.Capital resere

SOLUTION

Solution : A

Dividends are profits of the company that are agreed to be distributed to the shareholders of the company.

mcqs for cbse term 1 exam

mcqs for cbse term 1 exam class 12

mcqs for cbse term 1 exam class 12 Accountancy

mcqs for cbse term 1 exam class 12 Accountancy lesson 8

mcqs for cbse term 1 exam class 12 Accountancy lesson 8 Accounting for Share capital

mcqs for cbse term 1 exam class 12 Accountancy chapter 8

mcqs for cbse term 1 exam class 12 Accountancy chapter 8 Accounting for Share capital

MCQ'S TEST

mcqs test

class 12

class 12 Accountancy

class 12 Accountancy chapter 8

class 12 Accountancy chapter 8 Accounting for Share capital

class 12 Accountancy lesson 8

class 12 Accountancy lesson 8 Accounting for Share capital

class 12 mcqs

class 12 Accountancy mcqs

class 12 Accountancy chapter 8 mcqs

class 12 Accountancy chapter 8 Accounting for Share capital mcqs

class 12 objective questions

class 12 Accountancy objective questions

class 12 Accountancy chapter 8 objective questions

class 12 Accountancy chapter 8 Accounting for Share capital objective questions

mcqs of class 12

mcqs of class 12 Accountancy

mcqs of class 12 Accountancy chapter 8

mcqs of class 12 Accountancy chapter 8 Accounting for Share capital

objective questions of class 12

objective questions of class 12 Accountancy

objective questions of class 12 Accountancy chapter 8

objective questions of class 12 Accountancy chapter 8 Accounting for Share capital

class 12 Accountancy lesson 8

class 12 Accountancy lesson 8 Accounting for Share capital

class 12 Accountancy lesson 8 mcqs

class 12 Accountancy lesson 8 Accounting for Share capital mcqs

class 12 Accountancy lesson 8 objective questions

class 12 Accountancy lesson 8 Accounting for Share capital mcqs objective questions

mcqs of class 12 Accountancy lesson 8

mcqs of class 12 Accountancy lesson 8 Accounting for Share capital

objective questions of class 12 Accountancy lesson 8

objective questions of class 12 Accountancy lesson 8 Accounting for Share capital

most important questions of class 12

most important questions of class 12 Accountancy

most important questions of class 12 Accountancy chapter 8

most important questions of class 12 Accountancy chapter 8 Accounting for Share capital

most important questions of class 12 Accountancy lesson 8

most important questions of class 12 Accountancy lesson 8 Accounting for Share capital