Accounting - Study Mode

Show All Answers

[#116] A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be

(A) Rs. 500

(B) Rs. 200

(C) Rs. 250

(D) Rs. 100

Correct Answer

(D) Rs. 100

[#117] Premium on issue of shares can be used for:

(A) Issue of bonus shares

(B) Payment of dividends

(C) Payment of operating expenses

(D) Redemption of debentures

Correct Answer

(A) Issue of bonus shares

[#118] Which of the following is not a book of primary entry?

(A) Ledger

(B) Cash book

(C) Sales book

(D) Bills payable book

Correct Answer

(A) Ledger

[#119] Match the following. List-I List-II a. The formula for calculating the profit on reissue is . . . . . . . . 1. Article of Association b. Right shares must be first offerred to existing . . . . . . . . 2. Security premium c. Premium received on issue of debenture is credited to . . . . . . . . account 3. Amount forfeited less discount on reissue d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . . 4. Equity shareholders

(A) a-3, b-4, c-1, d-2

(B) a-3, b-1, c-4, d-2

(C) a-3, b-4, c-2, d-1

(D) a-4, b-3, c-2, d-1

Correct Answer

(C) a-3, b-4, c-2, d-1

[#120] Accounting principles are based on

(A) Practicability

(B) Subjectivity

(C) Convenience in recording

(D) None of the above

Correct Answer

(C) Convenience in recording