Company Accounts

A preference share is one, (i) which carries preferential right with respect to payment of dividend at fixed rate, (ii) which carries preferential right with respect to repayment of capital on winding up
1. Only (i) is correct
2. Only (ii) is correct
3. Both (i) and (ii) are correct
4. Both (i) and (ii) are incorrect
That part of share capital which can be called up only on the winding up of a company is called----------------------------------------------------------------------
1. Authorised capital
2. Called up capital
3. Capital reserve
4. Reserve capital
At the time of forfeiture, share capital account is debited with---------------------------------------------
1. Face value
2. Nominal value
3. Paid up amount
4. Called up amount
After the forfeited shares are reissued, the balance in the forfeited shares account should be transferred to--------------------------------------
1. General reserve account
2. Capital reserve account
3. Securities premium account
4. Surplus account
The amount received over and above the par value is credited to----------------------------------------------------
1. Securities premium account
2. Calls in advance account
3. Share capital account
4. Forfeited shares account
Which of the following statement is false?
1. Issued capital can never be more than the authorised capital
2. In case of under subscription, issued capital will be less than the subscribed capital
3. Reserve capital can be called at the time of winding up
4. Paid up capital is part of called up capital
When shares are issued for purchase of assets, the amount should be credited to-------------------------------------
1. Vendor’s A/c
2. Sundry assets A/c
3. Share capital A/c
4. Bank A/c
Match the pair and identify the correct option
1. Under subscription (1)
2. Over subscription (2)
3. Calls in arrear (3)
4. Calls in advance (4)
If a share of ` 10 on which ` 8 has been paid up is forfeited. Minimum reissue price is---------------------------
1. ` 10 per share
2. ` 8 per share
3. ` 5 per share
4. ` 2 per share
Supreme Ltd. forfeited 100 shares of ` 10 each for non-payment of final call of ` 2 per share. All these shares were re-issued at ` 9 per share. What amount will be transferred to capital reserve account?
1. ` 700
2. ` 800
3. ` 900
4. ` 1,000