1)Share allotment is a 


  • Personal Account
  • Real Account
  • Nominal Account



2) Discount of issue of share is shown on the 


  • Debit side of profit and loss account.
  • Credit side of profit and loss account.
  • Assets side of the balance sheet.
  • Liabilities side of the balance sheet.



3) Securities Premium account is recorded on the 


  • Debit side of profit and loss account.
  • Credit side of profit and loss account.
  • Assets side of balance sheet.
  • Liabilities side of balance sheet.



4) As per section 78 of the companies act, amount collected as premium on securities cannot be utilized for:


  • Issuing fully paid bonus shares to the members.
  • Writing off preliminary expenses.
  • Purchasing its own shares.
  • Purchasing fixed assets.



5)The portion of the authorised capital which can be called-up only on the liquidation of the company is called


  • Issued Capital
  • Reserve Capital
  • Unsubscribed Capital
  • Capital Reserve



6) If a share of Rs. 10 on which Rs. 8 has been called and Rs. 6 is paid is forfeited, the share capital account should be debited with


  • Rs. 10
  • Rs. 8
  • Rs. 6
  • Rs. 2






7) Payment of interest on calls-in-advance is at the discretion of the company.


  • True
  • False


8) Which of the following statement is false?


  • Declared dividend should be classified in the balance sheet as a current liability.
  • Dividends are usually paid as a percentage of paid-up-capital.
  • A company can raise funds beyond its Authorised capital.
  • As per the companies act, only preference shares which are redeemable within 20 years can be issued.



9) Which of the following statement is not correct?


  • Subscribed capital is that part of capital which is offered to the public for subscription.
  • Called-up-capital is that part of the subscribed capital, that has been called up.
  • Paid-up-capital = called-up-capital - calls in arrear
  • Issued capital is that part of authorised capital which is applied by the public and allotted by company.



10) Un-issued Capital (Authorised CApital - Issued Capital) is not shown in the Balance sheet.


  • True
  • False



11) Which of the following statements are incorrect ?


  • A company registered in india issues only Equity and Preference shares.
  • The preference share is that part of share capital which enjoys preferential rights regarding repayment of Capital and payment of Dividend.
  • A Public limited company can commence business as soon as it is incorporated.
  • A private company can commence business after getting the certificate of incorporation.



12) Securities premium once received cannot be cancelled.


  • True
  • False

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