Shares and Debentures – 35 Easy MCQs

Here are the 35 Solved MCQs of the Company Accounts – Shares and Debentures. These MCQs will develop your concept and help to improvise your exams preparation. A soft copy of these MCQs is also available.

Shares and Debentures (1-20 MCQs)

  1. Right shares mean the shares which are
    1. First offered to the existing shareholders
    1. Issued by a newly formed company
    1. Issued to the directors of the company
    1. First offered to the debenture holders
  2. On an equity share of Rs. 100, the minimum amount of application money under the law should be
    1. Rs. 10
    1. Rs. 8
    1. Rs. 5
    1. Rs. 4
  3. Share application account is a
    1. Real account
    1. Nominal account
    1. Fictitious account
    1. Personal account
  4. When a company issue shares at a premium, the amount of premium may be relieved by the company
    1. Along with calls
    1. Along with allotment only
    1. Along with application money
    1. Along with any the above
  5. The minimum share application money is
    1. 5% of the nominal value of shares
    1. 10% of the nominal value of shares
    1. 15% of the nominal value of shares
    1. 20% of the nominal value of shares
  6. The maximum share application money can be
    1. 20% of the issue price of shares
    1. 30% of the issue price of shares
    1. 50% of the nominal value of shares
    1. 50% of the issue price of shares
  7. In case shares have been issued at a premium and the share premium account has been credited but the amount has not been received, then at the time of forfeiture of such shares, share premium account should be
    1. Credited
    1. Debited
    1. None of the above
    1. Both of the above
  8. Any balance in the share forfeiture account after all the forfeiture shares are reissued should be
    1. Added to the paid-up capital
    1. Transferred to the goodwill account
    1. Transferred to the capital reserve account
    1. All of the above
  9. For the redemption of redeemable preference shares which of the following may be utilized by a limited company?
    1. Workman compensation fund
    1. Profit and loss account balance
    1. General reserves
    1. All of the above
  10. Capital redemption reserve account is available for
    1. Issue of bonus shares
    1. Reorganization of share capital
    1. Redemption of preference shares
    1. Redemption of redeemable debentures
  11. Premium on the redemption of debentures account is a
    1. Nominal account
    1. Real account
    1. Personal account
    1. Fictitious account
  12. When shares are forfeited, capital account is debited by
    1. Paid up amount on shares
    1. Called up amount on shares
    1. Nominal value of shares
    1. Forfeited share amount
  13. Transfer to capital redemption reserve account is allowed from
    1. Capital reserve
    1. General reserve
    1. Share premium account
    1. Share forfeiture account
  14. Bonus share can be issued out of
    1. Capital reserve
    1. Share premium account
    1. Income statement
    1. All of the above
  15. When a company purchases its own debentures as an investment, own debentures account is debited with the
    1. Paid up value of debenture
    1. Face value of debentures
    1. Amount paid for such debentures
    1. Market value
  16. Balance of share forfeited account is a
    1. Revenue reserve
    1. Capital reserve
    1. Both of the above
    1. None of the above
  17. Unclaimed dividends are shown on the liability side of the balance sheet under the heading
    1. Provisions
    1. Current liabilities
    1. Reserve and surplus
    1. All of the amount
  18. Debentures are shown in the balance sheet of a company under the item
    1. Unsecured loan
    1. Secured loan
    1. Current liabilities
    1. Current assets
  19. A company has made a public issue. It cannot issue bonus share before the expiry of
    1. 3 months
    1. 6 months
    1. 12 months
    1. 15 months
  20. The portion of the share capital which cannot be called up except on the winding up is known as
    1. Reserve capital
    1. Authorized capital
    1. Paid up capital
    1. Called up capital

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Quiz with Answers

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Company Accounts – Shares & Debentures

Quiz with Answers

1 / 35

Right shares mean the shares which are

2 / 35

On an equity share of Rs. 100, the minimum amount of application money under the law should be

3 / 35

Share application account is a

4 / 35

When a company issue shares at a premium, the amount of premium may be relieved by the company

5 / 35

The minimum share application money is

6 / 35

The maximum share application money can be

7 / 35

In case shares have been issued at a premium and the share premium account has been credited but the amount has not been received, then at the time of forfeiture of such shares, the share premium account should be

8 / 35

Any balance in the share forfeiture account after all the forfeiture shares are reissued should be

9 / 35

For the redemption of redeemable preference shares which of the following may be utilized by a limited company?

10 / 35

Capital redemption reserve account is available for

11 / 35

Premium on the redemption of debentures account is a

12 / 35

When shares are forfeited, capital account is debited by

13 / 35

Transfer to capital redemption reserve account is allowed from

14 / 35

Bonus share can be issued out of

15 / 35

When a company purchases its own debentures as an investment, own debentures account is debited with the

16 / 35

Balance of share forfeited account is a

17 / 35

Unclaimed dividends are shown on the liability side of the balance sheet under the heading

18 / 35

Debentures are shown in the balance sheet of a company under the item

19 / 35

A company has made a public issue. It cannot issue bonus shares before the expiry of

20 / 35

The portion of the share capital which cannot be called up except on the winding-up is known as

21 / 35

Assets in the balance sheet of a company are arranged in the order of

22 / 35

The overall ceiling a managerial remuneration as per the guidelines issued by the Central Government is

23 / 35

Which of the following is not required to be made under statute?

24 / 35

When the proposed dividend is 12% of the paid-up capital, the percentage of profit to be transferred reserve is

25 / 35

Proposed dividend is shown in the balance sheet of a company under the head

26 / 35

Non-convertible debentures refer to

27 / 35

Which of the following is not a current liability?

28 / 35

Which of the following is the registered capital of the company?

29 / 35

Share premium received by a company can be used for

30 / 35

When a company issue shares to vendors of assets for a consideration other than cash, such shares are issued?

31 / 35

Whenever debentures are canceled, any profit on cancellation is transferred to

32 / 35

Right shares are the shares

33 / 35

When all the debentures are redeemed, the balance left in the debentures sinking fund account is transferable to

34 / 35

After the re-issue of all forfeited shares, the balance in the share forfeited account should be

35 / 35

The balance of debenture sinking fund is transferred to which account after the redemption of debentures

Share and Debentures (21 -35 MCQs)

  1. Assets in the balance sheet of a company are arranged in the order of
    1. Permanence
    1. Liquidity
    1. Book value
    1. Market value
  2. The overall ceiling a managerial remuneration as per the guidelines issued by the Central Government is
    1. 10% of profit
    1. 11% of profit
    1. 20% of profit
    1. 25% of profit
  3. Which of the following is not required to be made under statute?
    1. Income statement
    1. Balance sheet
    1. Cash flow statement
    1. Funds flow statement
  4. When the proposed dividend is 12% of the paid-up capital, the percentage of profit to be transferred reserve is
    1. 7.5%
    1. 3.5%
    1. 2.5%
    1. 1.5%
  5. Proposed dividend is shown in the balance sheet of a company under the head
    1. Long-term liabilities
    1. Reserves and surplus
    1. Current liabilities
    1. Provisions
  6. Non-convertible debentures refer to
    1. Short-term debts
    1. Owner’s capital
    1. Loan capital
    1. None of these
  7. Which of the following is not a current liability?
    1. Bills payable
    1. Bank overdraft
    1. Minority interest
    1. Unclaimed dividend
  8. Which of the following is the registered capital of the company?
    1. Authorized capital
    1. Paid up capital
    1. Uncalled capital
    1. Reserve capital
  9. Share premium received by a company can be used for
    1. Remuneration of management
    1. Any business purposes
    1. Issue of bonus
    1. Payment of dividend
  10. When a company issue shares to vendors of assets for a consideration other than cash, such shares are issued?
    1. At a premium
    1. At par
    1. At a discount
    1. Any of the above
  11. Whenever debentures are cancelled, any profit on cancellation is transferred to
    1. Capital redemption reserve account
    1. Capital reserve account
    1. Profit and loss account
    1. Sinking fund account
  12. Right shares are the shares
    1. Issued by a newly-formed company
    1. First offered to the existing shareholders
    1. First offered to debenture holders
    1. Issued to the directors of the company
  13. When all the debentures are redeemed, the balance left in the debentures sinking fund account is transferable to
    1. Sinking fund investment account
    1. General reserves
    1. Debenture account
    1. Capital redemption reserve
  14. After the re-issue of all forfeited shares, the balance in share forfeited account, should be
    1. Transferred to capital reserve account
    1. Added to paid-up capital
    1. Transferred to goodwill account
    1. None of these
  15. The balance of debenture sinking fund is transferred to which account after the redemption of debentures
    1. Capital reserve
    1. Debenture account
    1. General reserve
    1. Capital reserves
Shares and Debentures
Shares and Debentures

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