Test: Company Accounts Issue Of Shares - 1


10 Questions MCQ Test Accountancy Class 12 | Test: Company Accounts Issue Of Shares - 1


Description
This mock test of Test: Company Accounts Issue Of Shares - 1 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Company Accounts Issue Of Shares - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Company Accounts Issue Of Shares - 1 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Company Accounts Issue Of Shares - 1 exercise for a better result in the exam. You can find other Test: Company Accounts Issue Of Shares - 1 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

Q. Share Application A/c and Share Allotment A/c is:

Solution:

Share Application or share allotment or Share capital A/c all are personal accounts as they represent money from the shareholders and when money is due, these are to be debited because of the rule "Debit the receiver".

QUESTION: 2

In which situation(s) Partnership is dissolved?

Solution:

Usually, general partnerships will dissolve if any partner withdraws, becomes deceased, or otherwise becomes unable to continue their duties as a partner. Other circumstances that may lead to partnership dissolution may include: Loss of profits or declaration of bankruptcy. Illegal activities or violations.

QUESTION: 3

A new company cannot issue shares at ______.

Solution:

As per the Companies Act, 2013, (new guidelines) a company cannot issue its shares at discount. Company can issue its shares at par and premium.

QUESTION: 4

Loan can be described as a 'short-term loan' if the period is:

Solution:

Short term loans are called such because of how quickly the loan needs to be paid off. In most cases, it must be paid off within six months to a year and a half.

QUESTION: 5

Securities premium account can be utilized for:

Solution:

As per the section 52 of the Companies Act, 2013 restricts the use of securities premium received.
It can be used for the following purposes:
(i) To write off the preliminary expenses.
(ii) To issue fully paid bonus shares to promoters.
(iii) To purchase own shares.
(iv) To write off the expenses.

QUESTION: 6

In case of a public company, it must have at least _____ Directors.

Solution:

 A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have at least 3 directors.

QUESTION: 7

Which of the following is not true about Preference Shares?

Solution:

Preference Shares are those shares on dividend to be paid as fixed amount. These shares are convertible and can be redeemed.

QUESTION: 8

What is paid to the Shareholders?

Solution:
  • Dividend is paid to the shareholders.
  • Interest is paid to the Debenture holders.
QUESTION: 9

Share Forfeiture account is a:

Solution:

All accounts which are prepared for the calculation of profit or loss are nominal accounts. All assets accounts are real and liabilities are personal accounts.

QUESTION: 10

A, B and C are sharing profits and losses in the ratio 5:3:2 with effect from 01/04/2013 they decide to share profit and losses equally. Which partner has to sacrifice?

Solution: