Question Bank

Class XIIth Quiz


Class XIIth Quiz

1.State whether the following statements are true or false
A) A company is a natural person.
B) A member of a company have a limited liabilities
C) In case of public limited compananies ,there are no restrictions on transfer of share
D) All those private company are also to be treated as public limited companies if 25% or more of paid up capital is held by the public companies
E) The MoA has to be signed by at least seven members
F) Prospectus is nothing but an invitation to the public to subscribe for share & debenture of a company
G) Minimum subscription is the amount that should not be less than 50% of the issue
H) In general a company will not issue its entire nominal capital at a time
I) Share can be issued only for cash
J) The company entering the capital market can retain out of subscription up to 10% of the number of share offered
K) When share are issued at premium ,over the amount of premium has to be credited to share allotment account
L) Normally, the rate of discount must not exceed 20% of face value when share are to be issued at discount
M) The allotment of share should be completed within one month of the issue of the prospectus
N) A new company cannot issue share at a discount
O) The premium received on share may be distributed among shareholder like others profit

2 Fill the correct answer
a) A Company is created by …………………………………………………………………….
b) The capital of a company consists ………………………………………………………..
c) A private company which is subsidiary of public company is a …………………….
d) Share application account is a …………………………………………………
e) Share allotment account is a ………………………………………………………
f) The difference between subscribed capital and called up capital is …………………………
g) The minimum share application money will be ………………………………………..
h) A company wishes to pay dividend on share which of the following may be utilized——
i) Discount on issue of shares account is shown on …………………………….
j) Premium received on issue of share account is shown on …………………………..

3.Differentiate between:
A) MOA & AOA B) Equity Share & Preference Share C) Government Co & Holding and Subsidiary Company

4 Short Questions (Define 20 Words)
a) What is the nature of Private Company?
b) What is meant by registered capital?
C) What is meant of reserve capital?
D) What is a call in arrear?
E) What is a statutory Company?

5 Write the Full name of the Following
a) COB b) SEBI C) IPO D) ROC E) AOA & MOA

6 A company was registered with nominal capital of Rs 5000000 divided in to 20000 Equity share @ Rs 100 each and 30000, 10% preference share @ 100each out of which company has issued 15000equity share and 20000,10% preference share @ 100each . The amount has payable as under
On application Rs 30, On Allotment Rs 50 and on First & final call Rs 40.
Assuming that all the application money is duly received and payment made except of a shareholder having 500 shares could not pay allotment and call money. Pass the necessary journal entries in the books of company. 1*10=10

7.When share is issued by the company for cash consideration then discusses the following
A) Amount of shares Payable in one installment (in lump –sum) 1*10=10
B) Amount of Shares payable in subsequent installment

8. A ltd issued 30000 equity share of Rs 10 each at Rs 12 the whole amount was payable on application. The public applied for the entire share and the share were duly allotted. Pass the
necessary journal entries in the books of company