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Test: Company Accounts Issue Of Shares - 1 - Commerce MCQ


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

Test: Company Accounts Issue Of Shares - 1 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Company Accounts Issue Of Shares - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Company Accounts Issue Of Shares - 1 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Company Accounts Issue Of Shares - 1 below.
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Test: Company Accounts Issue Of Shares - 1 - Question 1

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

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 1

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".

Test: Company Accounts Issue Of Shares - 1 - Question 2

In which situation(s) Partnership is dissolved?

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 2

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.

Test: Company Accounts Issue Of Shares - 1 - Question 3

A new company cannot issue shares at ______.

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 3

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.

Test: Company Accounts Issue Of Shares - 1 - Question 4

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

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 4

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.

Test: Company Accounts Issue Of Shares - 1 - Question 5

Securities premium account can be utilized for:

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 5

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.

Test: Company Accounts Issue Of Shares - 1 - Question 6

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

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 6

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

Test: Company Accounts Issue Of Shares - 1 - Question 7

Which of the following is not true about Preference Shares?

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 7

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

Test: Company Accounts Issue Of Shares - 1 - Question 8

What is paid to the Shareholders?

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 8
  • Dividend is paid to the shareholders.
  • Interest is paid to the Debenture holders.
Test: Company Accounts Issue Of Shares - 1 - Question 9

Share Forfeiture account is a:

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 9

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.

Test: Company Accounts Issue Of Shares - 1 - 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?

Detailed Solution for Test: Company Accounts Issue Of Shares - 1 - Question 10
Partner A - In the initial ratio, Partner A's share is 5 out of 10 (5:3:2). - When they decide to share profit and losses equally, each partner's share will be 1 out of 3. - Therefore, Partner A has to sacrifice 4 parts of the profit. Partner B - In the initial ratio, Partner B's share is 3 out of 10 (5:3:2). - When they decide to share profit and losses equally, each partner's share will be 1 out of 3. - Therefore, Partner B has to sacrifice 2 parts of the profit. Partner C - In the initial ratio, Partner C's share is 2 out of 10 (5:3:2). - When they decide to share profit and losses equally, each partner's share will be 1 out of 3. - Therefore, Partner C has to sacrifice 1 part of the profit. Based on the above analysis, it can be concluded that Partner A has to sacrifice the most in terms of profit distribution when they decide to share profit and losses equally.
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