{"id":4938,"date":"2024-03-22T08:54:02","date_gmt":"2024-03-22T03:24:02","guid":{"rendered":"https:\/\/gstguntur.com\/?p=4938"},"modified":"2024-03-25T17:22:16","modified_gmt":"2024-03-25T11:52:16","slug":"accounting-for-issue-of-shares-corporate-and-management-accounting-mcq","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/accounting-for-issue-of-shares-corporate-and-management-accounting-mcq\/","title":{"rendered":"Accounting for Issue of Shares \u2013 Corporate and Management Accounting MCQ"},"content":{"rendered":"

Students should practice Accounting for Issue of Shares \u2013 Corporate and Management Accounting CS Executive MCQ<\/a> Questions with Answers based on the latest syllabus.<\/p>\n

Accounting for Issue of Shares \u2013 Corporate and Management Accounting MCQ<\/h2>\n

Question 1.
\nPremium on issue of shares must be treated as
\n(A) Revenue Receipt
\n(B) Deferred Revenue Receipt
\n(C) Capital Receipt
\n(D) Capital Loss
\nAnswer:
\n(C) Capital Receipt<\/p>\n

Question 2.
\nPremium on issue of shares must be credited to a separate account called
\n(A) Share Premium Account
\n(B) Securities Premium Account
\n(C) Discount on Issue of Shares
\n(D) Securities Profit Account
\nAnswer:
\n(B) Securities Premium Account<\/p>\n

Question 3.
\nSecurities premium account must be shown separately on the liabilities side of the balance sheet under the heading
\n(A) Share Capital; Shareholders Funds
\n(B) Reserves & Surplus; Shareholders Funds
\n(C) Secured Loan; Reserves & Sur-plus
\n(D) Unsecured Loan; Profit or Loss
\nAnswer:
\n(B) Reserves & Surplus; Shareholders Funds<\/p>\n

Question 4.
\nWhich of the following type of security can be issued at discount as per the Companies Act, 2013?
\n(1) Equity Shares
\n(2) Sweat Equity Shares
\n(3) Preference Shares
\n(4) Debentures
\n(5) Bonds
\nSelect the correct answer from the options given below –
\n(A) (1) & (3) only
\n(B) (1), (3) & (4) only
\n(C) (2), (4) & (5) only
\n(D) (3), (4) & (5) only
\nAnswer:
\n(C) (2), (4) & (5) only<\/p>\n

Question 5.
\nWhich of the following Table of Schedule I to the Companies Act, 2013 contains the provisions relating to Calls-in-Advance & Calls-in-Arrears?
\n(A) Table F
\n(B) Table A
\n(C) Table C
\n(D) Table G
\nAnswer:
\n(A) Table F<\/p>\n

Question 6.
\nAmount received as calls-in-advance
\nis a of the company.
\n(A) right
\n(B) asset
\n(C) debt
\n(D) revenue
\nAnswer:
\n(C) debt<\/p>\n

Question 7.
\nAmount due on calls made but not paid is known as –
\n(A) Calls-in-Advance
\n(B) Calls-in-Arrear
\n(C) Unpaid amounts
\n(D) Defaulting amounts
\nAnswer:
\n(B) Calls-in-Arrear<\/p>\n

Question 8.
\nIf the number of shares issued is more than the number of shares applied the shares are said to be –
\n(A) Oversubscribed
\n(B) Undersubscribed
\n(C) Minimum subscription
\n(D) None of above
\nAnswer:
\n(B) Undersubscribed<\/p>\n

Question 9.
\nIf the number of shares applied for is more than the number of shares issued the shares are said to be –
\n(A) Oversubscribed
\n(B) Undersubscribed
\n(C) Minimum subscription
\n(D) None of above
\nAnswer:
\n(A) Oversubscribed<\/p>\n

Question 10.
\nIn case of oversubscription of shares each applicant receives the shares in some proportion, it is known as –
\n(A) Bonus allotment
\n(B) Right allotment
\n(C) Per applicant allotment
\n(D) Pro-rata allotment
\nAnswer:
\n(D) Pro-rata allotment<\/p>\n

Question 11.
\nIf authorized by the company may receive from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.
\n(A) Memorandum of Association (MOA)
\n(B) Articles of Association (AOA)
\n(C) Prospectus
\n(D) Securities Exchange Board of India
\nAnswer:
\n(B) Articles of Association (AOA)<\/p>\n

Question 12.
\n______paid on calls-in-advance.
\n(A) Share of company\u2019s profit can be
\n(B) Dividend can be
\n(C) No dividend is
\n(D) None of above
\nAnswer:
\n(C) No dividend is<\/p>\n

Question 13.
\nAs per Table F of Schedule I of the Companies Act, 2013, interest on calls in advance can be paid at p.a.
\n(A) 8%
\n(B) 10%
\n(C) 12%
\n(D) 15%
\nAnswer:
\n(C) 12%<\/p>\n

Question 14.
\nAs per Table F of Schedule I to the Companies Act, 2013, interest on calls in arrear can be received at p.a.
\n(A) 10%
\n(B) 12%
\n(C) 15%
\n(D) 8%
\nAnswer:
\n(A) 10%<\/p>\n

Question 15.
\nInterest on calls-in-advance is paid for the period from the –
\n(A) Date of receipt of application money to the date of appropriation
\n(B) Date of receipt of allotment mon\u00acey to the date of appropriation
\n(C) Date of receipt of calls-in-advance to the date of appropriation of the call
\n(D) Date of appropriation to the date of dividend payment
\nAnswer:
\n(C) Date of receipt of calls-in-advance to the date of appropriation of the call<\/p>\n

Question 16.
\nBalance of interest on the calls-in-arrear account is transferred to at the end of the year.
\n(A) Share capital account
\n(B) Calls in advance account
\n(C) Securities premium account
\n(D) Profit & loss account
\nAnswer:
\n(D) Profit & loss account<\/p>\n

Question 17.
\nBalance of interest on calls-on- advance account is transferred to the at the end of the year.
\n(A) Share capital account
\n(B) Calls in advance account
\n(C) Securities premium account
\n(D) Profit & loss account
\nAnswer:
\n(D) Profit & loss account<\/p>\n

Question 18.
\nA company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and debited.
\n(A) Preliminary expenses account
\n(B) Goodwill account
\n(C) Capital reserve account
\n(D) Suspense account
\nAnswer:
\n(B) Goodwill account<\/p>\n

Question 19.
\n_____may be said to be the compulsory termination of membership by way of penalty for non-payment of allotment and\/or any call money.
\n(A) Surrender of shares
\n(B) Forfeiture of shares
\n(C) Transfer of shares
\n(D) Transmission of shares
\nAnswer:
\n(B) Forfeiture of shares<\/p>\n

Question 20.
\nWhich of the following security can be forfeited for non-payment of allotment or call money?
\n(I) Equity Shares
\n(II) Equity Shares, Preference Shares
\n(III) Preference Shares, Equity Shares & Debentures
\n(IV) Debentures
\nSelect the correct answer from the options given below –
\n(A) (I) only
\n(B) (III) only
\n(C) (I) & (IV) only
\n(D) (II) only
\nAnswer:
\n(D) (II) only<\/p>\n

Question 21.
\nThe subscribed share capital of S Ltd. is \u20b9 80,00,000 of 1100 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 \u20b9 62,500. The final call per share = ?
\n(A) \u20b9 25
\n(B) \u20b9 7.80
\n(C) \u20b9 20
\n(D) \u20b9 62.50
\nHint:
\nTotal shares = \\(\\frac{80,00,000}{100}\\) = 80,000
\n80,000 – 77,500 = 2,500; \\(\\frac{62,500}{2,500}\\) = 25
\nAnswer:
\n(A) \u20b9 25<\/p>\n

Question 22.
\nAn Ltd. acquired assets worth \u20b9 71,25,000 from H Ltd. by the issue of shares of \u20b9 10 @ premium of \u20b9 25%. The number of shares issued to settle the purchase consideration will be
\n(A) 5,70,000 shares
\n(B) 7,12,500 shares
\n(C) 84,375 shares
\n(D) 50,625 shares
\nHint:
\nNo. of shares to be issued = \\(\\frac{\\text { Purchase Consideration }}{\\text { Issue Price }}\\)
\n\\(\\frac{71,25,000}{12.5}\\) = 5,70,000 shares
\nAnswer:
\n(A) 5,70,000 shares<\/p>\n

Question 23.
\nN Ltd. has allotted 10,000 shares to the applicants of 14,000 shares on a pro-rata basis. The amount payable on the application is \u20b9 2. Ram applied for 420 shares. The number of shares allotted and amount carried forward for adjustment against allotment –
\n(A) 300 shares; \u20b9 240
\n(B) 60 shares; \u20b9 160
\n(C) 340 shares; \u20b9 160
\n(D) 320 shares; \u20b9 240
\nHint:
\nNo. of shares allotted = \\(\\frac{10,000}{14,000}\\) \u00d7 420 = 300
\nApplication money paid = 420 \u00d7 2 = 840.
\nApplication money transferred to capital = 300 \u00d7 2 = 600
\nExcess application money adjusted for allotment = 840 – 600 = 240
\nAnswer:
\n(A) 300 shares; \u20b9 240<\/p>\n

Question 24.
\nThe following information pertains to X Ltd.
\nCalled-up share capital = \u20b9 5,00,000
\nCalls-in-arrear = \u20b9 40,000
\nCalls-in-advance = \u20b9 25,000
\nProposed dividend =1596
\nThe amount of dividend payable is______
\n(A) \u20b9 75,000
\n(B) \u20b9 72,750
\n(C) \u20b9 71,250
\n(D) \u20b9 69,000
\nHint:
\nDividend is not payable on Call-in-Advance. Dividend is payable on paid-up capital (ie. Called-up capital minus Call-in-Arrear). Hence, Dividend Payable = (5,00,000 – 40,000) \u00d7 1596 = 69,000.
\nAnswer:
\n(D) \u20b9 69,000<\/p>\n

Question 25.
\nR Ltd. purchased the business of C Ltd. for \u20b9 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of \u20b9 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at par. The number of shares to be issued by R Ltd. to settle the purchase consideration =?
\n(A) 22,500
\n(B) 27,500
\n(C) 27,000
\n(D) 30,000
\nHint:
\nNo. of shares to be issued = \\(\\frac{2,70,000}{10}\\) = 27,000 shares
\nAnswer:
\n(C) 27,000<\/p>\n

Question 26.
\nR Ltd. purchased the business of C Ltd. for \u20b9 2,70,000 payable in fully paid shares. R Ltd. allotted equity shares of \u20b9 10 each fully paid in satisfaction of the claim by C Ltd. Such shares are issued at a premium of 20%. A number of shares to be issued by R Ltd. to settle the purchase consideration =?
\n(A) 22,500 shares
\n(B) 27,500 shares
\n(C) 27,000 shares
\n(D) 30,000 shares
\nHint:
\nNo. of shares to be issued = \\(\\frac{2,70,000}{12}\\) = 22 500 shares
\nAnswer:
\n(A) 22,500 shares<\/p>\n

Question 27.
\nX was issued 100 shares of \u20b9 10 each at a premium of \u20b9 1, he paid application money which in total amounted to \u20b9 5 (excluding premium), and failed to balance call money of \u20b9 5. Find the maximum discount that can be given at the time of re-issue of shares.
\n(A) \u20b9 2
\n(B) \u20b9 4
\n(C) \u20b9 6
\n(D) \u20b9 5
\nHint:
\nAt the time of reissue of shares maximum discount that can be given should not exceed the amount received on forfeited shares. Hence, 10 – 5 = 5.
\nAnswer:
\n(D) \u20b9 5<\/p>\n

Question 28.
\nS Ltd. acquired fixed assets worth \u20b9 15,00,000 by the issue of shares of \u20b9 100 at a premium of 25%. The number of shares to be issued by S Ltd. to settle the purchase consideration =?
\n(A) 12,000 shares
\n(B) 15,000 shares
\n(C) 18,750 shares
\n(D) 11,250 shares
\nNo. of shares to be issued = \\(\\frac{15,00,000}{125}\\) = 12,000 shares
\nAnswer:
\n(A) 12,000 shares<\/p>\n

Question 29.
\nQ Ltd. had allotted \u20b9 1,00,000 shares to the applicants of \u20b9 1,40,000 shares on a pro-rata basis. The amount payable on the application is \u20b9 2. Mr. N applied for \u20b9 4,200 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from Mr. N =?
\n(A) 600 shares; \u20b9 1,200
\n(B) 3,200 shares; \u20b9 2,000
\n(C) 3,400 shares; \u20b9 1,600
\n(D) 3,000 shares; \u20b9 2,400
\nHint:
\n\"Accounting
\nAlternatively,
\nNo. of shares allotted = \\(\\frac{1,40,000}{1,00,000}\\) \u00d7 4,200 = 3,000 shares
\nApplication money paid = 4,200 \u00d7 2 = 8,400.
\nApplication money transferred to capital = 3,000 \u00d7 2 = 6,000
\nExcess application money adjusted for allotment = 8,400 – 6,000 = 2,400
\nAnswer:
\n(D) 3,000 shares; \u20b9 2,400<\/p>\n

Question 30.
\nR Ltd. forfeited 300 equity shares of \u20b9 10 fully called-up, held by Mr. X for non-payment of the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @72 per share and allotment money @ \u20b9 3 per share. At the time of forfeiture Share Capital A\/c will be credited by
\n(A) \u20b9 1,500
\n(B) \u20b9 3,000
\n(C) \u20b9 600
\n(D) \u20b9 900
\nHint:
\nShare Capital A\/c is always credited at face value = (300 \u00d7 10) = 3,000
\nAnswer:
\n(B) \u20b9 3,000<\/p>\n

Question 31.
\nR Ltd. forfeited 300 equity shares of \u20b9 10 fully called-up, held by Mr. X for non-payment of the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share and allotment money @ \u20b9 3 per share. These shares were reissued at \u20b9 10 each. Amount to be transferred to Capital Reserve Account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 3,000
\n(C) \u20b9 600
\n(D) \u20b9 900
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (300 \u00d7 5)<\/td>\n1,500<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares<\/td>\nNil<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n1,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(A) \u20b9 1,500<\/p>\n

Question 32.
\nR Ltd. forfeited 300 equity shares of \u20b9 10 fully called-up, held by Mr. X for non-payment of the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share and allotment money @ \u20b9 3 per share. These shares were reissued at \u20b9 7 each. Amount to be transferred to Capital Reserve Account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 3,000
\n(C) \u20b9 600
\n(D) \u20b9 900
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (300 \u00d7 5)<\/td>\n1,500<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares (300 \u00d7 3)<\/td>\n(900)<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n600<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(C) \u20b9 600<\/p>\n

Question 33.
\nR Ltd. forfeited 300 equity shares of \u20b9 10 fully called-up, held by Mr. X. for non-payment of the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share and allotment money @ \u20b9 3 per share. These shares were reissued at 12 each. Amount to be transferred to Capital Reserve Account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 3,000
\n(C) \u20b9 600 .
\n(D) \u20b9 900
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (300 \u00d7 5)<\/td>\n1,500<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares<\/td>\nNil<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n1,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(A) \u20b9 1,500<\/p>\n

Question 34.
\nT Ltd. forfeited 500 equity shares of \u20b9 10 fully called-up, held by Mr. Ram for non-payment of allotment money of \u20b9 5 (including \u20b9 2 premium), the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share. These shares were reissued at \u20b9 70 each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 2,500
\n(C) \u20b9 500
\n(D) \u20b9 1,000
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (500 \u00d7 2)<\/td>\n1,000<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares<\/td>\nNil<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n1,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(D) \u20b9 1,000<\/p>\n

Question 35.
\nT Ltd. forfeited 500 equity shares of \u20b9 10 fully called-up, held by Mr. Ram for non-payment of allotment money of \u20b9 5 (including \u20b9 2 premium), the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share. These shares were reissued at \u20b9 9 each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 2,500
\n(C) \u20b9 500
\n(D) \u20b9 1,000
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (500 \u00d7 2)<\/td>\n1,000<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares (500 \u00d7 1)<\/td>\n(500)<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(C) \u20b9 500<\/p>\n

Question 36.
\nT Ltd. forfeited 500 equity shares of \u20b9 10 fully called-up, held by Mr. Ram for non-payment of allotment money of \u20b9 5 (including \u20b9 2 premium), the first call of \u20b9 2 and final of \u20b9 3 each. However, he paid application money @ \u20b9 2 per share. These shares were reissued at \u20b9 13 each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 1,500
\n(B) \u20b9 2,500
\n(C) \u20b9 500
\n(D) \u20b9 1,000
\nHint:<\/p>\n\n\n\n\n\n
The amount credited to Share Forfeited A\/c (500 \u00d7 2)<\/td>\n1,000<\/td>\n<\/tr>\n
(-) Discount on the reissue of shares<\/td>\nNil<\/td>\n<\/tr>\n
The amount credited to Capital Reserve A\/c<\/td>\n1,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n(D) \u20b9 1,000<\/p>\n

Question 37.
\nW Ltd. forfeited 400 equity shares of \u20b9 10 fully called-up, held by Mr. P for non-payment of final of \u20b9 3 each. However, he paid application money @ \u20b9 2, Allotment \u20b9 2, and first call \u20b9 3 per share. These shares were reissued at 7 ids each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 2,800
\n(B) \u20b9 1,600
\n(C) \u20b9 1,200
\n(D) \u20b9 400
\nHint:
\n\"Accounting
\n\"Accounting
\nAnswer:
\n(A) \u20b9 2,800<\/p>\n

Question 38.
\nW Ltd. forfeited 400 equity shares of \u20b9 10 fully called-up, held by Mr. P for non-payment of final of \u20b9 3 each. However, he paid application money @ \u20b9 2, Allotment \u20b9 2, and first call \u20b9 3 per share. These shares were reissued at \u20b9 7 each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 2,400
\n(B) \u20b9 1,600
\n(C) \u20b9 1,200
\n(D) \u20b9 400
\nHint:
\n\"Accounting
\n\"Accounting
\nAnswer:
\n(B) \u20b9 1,600<\/p>\n

Question 39.
\nW Ltd. forfeited 400 equity shares of \u20b9 10 fully called-up, held by Mr. P for non-payment of final of \u20b9 3 each. However, he paid application money (5) \u20b9 2, Allotment \u20b9 2, and first call \u20b9 3 per share. These shares were reissued at \u20b9 73 each.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 2,800
\n(B) \u20b9 1,600
\n(C) \u20b9 1,200
\n(D) \u20b9 400
\nHint:
\n\"Accounting
\n\"Accounting
\nAnswer:
\n(A) \u20b9 2,800<\/p>\n

Question 40.
\nX Ltd. forfeited 200 equity shares of \u20b9 10 each, \u20b9 8 called-up for non\u00acpayment of first call money @ \u20b9 2 each. Application money @ \u20b9 2 per share and allotment money @74 per share has already been received by the company. Out of these 150 shares were reissued at \u20b9 per share as showing \u20b9 8 paid up.
\nOn reissue amount to be transferred to capital reserve account =?
\n(A) \u20b9 1,200
\n(B) \u20b9 1,600
\n(C) \u20b9 1,050
\n(D) \u20b9 750
\nHint:
\n\"Accounting
\n\"Accounting
\nAnswer:
\n(D) \u20b9 750<\/p>\n

Question 41.
\nOn 1.1.2015, X Ltd. marks an issue of \u20b9 1,00,000 equity shares of \u20b9 100 each payable as follows:
\nApplication \u20b9 20
\nAllotment \u20b9 30
\nFinal call \u20b9 50 (3 months after allotment)
\nApplications were received for 1,20,000 shares and the directors refunded the excess application money. One shareholder, who was allotted 2,000, shares paid the first and final call with allotment money and another shareholder did not pay allotment money on his 3,000 shares but which he paid with the first and final call. Directors have decided to charge and allows interest, according to Table F of Schedule I to the Companies Act, 2013. Interest in calls-in-advance =?
\n(A) \u20b9 3,000
\n(B) \u20b9 2,500
\n(C) \u20b9 1,800
\n(D) \u20b9 1,500
\nHint:
\nInterest on Calls-in-Advance = 2,000 \u00d7 50 \u00d7 12% \u00d7 \\(\\frac{3}{12}\\) = 3,000
\nAnswer:
\n(A) \u20b9 3,000<\/p>\n

Question 42.
\nW Ltd. issued 2,00,000 shares of \u20b9 100 each at a premium of 20% on May 1, 2015, payable as follows:
\nOn application (including pre- 7 45 mm)
\nOn allotment \u20b9 25
\nOn the first & final call \u20b9 50
\nSunil to whom 10,000 shares were allotted, has paid \u20b9 5,00,000 on June 1, 2015. At the time of remitting the allotment money, he indicated that the excess money should be adjusted towards the call money. The directors of the company made the first and final call on October 31, 2015. The company has a policy of paying interest on calls-in-advance as per Table F of Schedule I to the Companies Act, 2013. The amount of interest paid to Sunil on Calls-in-Advance will be
\n(A) \u20b9 25,000
\n(B) \u20b9 12,500
\n(C) \u20b9 20,833.33
\n(D) \u20b9 18,750
\nHint:
\nAmount due on allotment by Sunil = 10,000 \u00d7 25 = 2,50,000.
\nThus, Calls-in-Advance = 5,00,000 – 2,50,000 = 2,50,000
\n2,50,0 \u00d7 12% \u00d7 \\(\\frac{5}{12}\\) = 12,500
\nAnswer:
\n(B) \u20b9 12,500<\/p>\n

Question 43.
\nThe Director of ZPA Ltd. made a final call of \u20b9 50 per share on 1 st August 2015 indicating the last date of payment of call to be 31st August 2015. Mr. Black holding 5,000 shares paid the call money on 15 October 2015. The company has a policy of paying interest on calls-in-arrear as per Table F of Schedule I to the Companies Act, 2013. Interest on calls-in-arrear =?
\n(A) \u20b9 3,125
\n(B) \u20b9 1,562.50
\n(C) \u20b9 1,875
\n(D) \u20b9 1,500
\nHint:
\nInterest on Calls-in-Arrear = 5,000 \u00d7 50 \u00d7 10% \u00d7 \\(\\frac{2.5}{12}\\) = 3,125
\nAnswer:
\n(A) \u20b9 3,125<\/p>\n

Question 44.
\nThe Director of NSZ Ltd. made a final call of? 50 per share on 1 st August 2015 indicating the last date of payment of call to be 31st August 2015. Mr. Black holding 8,000 shares paid the call money on 15 June 2015 along with first call-in advance. The company has a policy of paying interest on calls-in- advance as per Table F of Schedule I to the Companies Act, 2013. Interest in calls-in-advance =?
\n(A) \u20b9 6,000
\n(B) \u20b9 8,333.33
\n(C) \u20b9 5,000
\n(D) \u20b9 10,000
\nHint:
\nInterest on Calls-in-Advance = 8,000 \u00d7 50 \u00d7 12% \u00d7 \\(\\frac{2.5}{12}\\) = 10,000
\nAnswer:
\n(D) \u20b9 10,000<\/p>\n

Question 45.
\nThe following data is available from the records of NS Ltd.
\nIssued capital \u20b9 2,00,000
\nCall in arrear \u20b9 10,000
\nP&L credit balance (1.4.2018) \u20b9 67,000
\nProfit for the year \u20b9 1,90,610
\nThe company wants to create a debenture redemption reserve and transfer \u20b9 50,000 every year.
\nThe company declared a 10% dividend.
\nThe balance of surplus after effecting the above transaction =?
\n(A) \u20b9 1,06,000
\n(B) \u20b9 1,06,810
\n(C) \u20b9 1,68,100
\n(D) \u20b9 1,88,610
\nHint:
\nDividend = (2,00,000 – 10,000) \u00d7 10% = 19,000
\nSurplus after dividend = 67,000 + 1,90,610 – 19,000 – 50,000 = 1,88,610.
\nAnswer:
\n(D) \u20b9 1,88,610<\/p>\n","protected":false},"excerpt":{"rendered":"

Students should practice Accounting for Issue of Shares \u2013 Corporate and Management Accounting CS Executive MCQ Questions with Answers based on the latest syllabus. Accounting for Issue of Shares \u2013 Corporate and Management Accounting MCQ Question 1. Premium on issue of shares must be treated as (A) Revenue Receipt (B) Deferred Revenue Receipt (C) Capital …<\/p>\n

Accounting for Issue of Shares \u2013 Corporate and Management Accounting MCQ<\/span> Read More »<\/a><\/p>\n","protected":false},"author":3,"featured_media":12558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[102],"tags":[],"jetpack_featured_media_url":"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/Accounting-for-Issue-of-Shares-\u2013-Corporate-and-Management-Accounting-MCQ.png","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/4938"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=4938"}],"version-history":[{"count":2,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/4938\/revisions"}],"predecessor-version":[{"id":12559,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/4938\/revisions\/12559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media\/12558"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=4938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=4938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=4938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}