Company Accounts Questions

Arrange the following steps in correct sequence with regard to Shares of a company.(A) Making Calls(B) Forfeiture of Shares(C) Issue of Prospectus(D) Calls in Arrears(E) Reissue of SharesChoose the correct answer from the options given below:

Arrange the following steps as per the procedure of issue of shares:(a) Receipt of applications(b) Allotment of shares(c) Reissue of forfeited shares(d) Issue of prospectus(e) Forfeiture of sharesChoose the correct answer from the options given below:

The paid up share capital of "One Person Company" cannot be more than:

Redemption of Debenture can be done by many ways. Identify the wrong option.

Identify the methods of Redemption of Debenture from the following.(A) By conversion into shares or new debenture(B) Purchase in open market(C) Sinking fund(D) Payment in instalments(E) Payment in lump-sumChoose the correct answer from the options given below :

The following journal entry is recorded in the books of RST Ltd. on issue of debentures: Bank a/c Dr 18,00,000Loss on issue of Debentures a/c Dr 6,00,000To 14% Debentures 20,00,000To Premium on Redemption of Debentures 4,00,000Debentures have been issued at a discount of:

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I}& \text{List - II}\\ \text{(A) Equity Share}& \text{(I) Fixed Dividend}\\ \text{(B) Preference Share}& \text{(II) No hold over Assets}\\ \text{(C) Secured Loan}& \text{(III) Hold over Assets}\\ \text{(D) Unsecured Loan}& \text{(IV) Voting Right}\end{array}$$
Choose the correct answer from the options given below:

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue $12\%$ Debentures of Rs. $100$ each at $10\%$ Discount and were to be redeemed at $25\%$ premium in such a way that they could arrange fund of Rs. $45,00,000$. At the time of issue of Debenture they also issued equity Share of Rs. $30,00,000$ at $20\%$ premium.Determine the number of Debentures to be issued.

If a share of Rs. 100 on which Rs. 45 has been paid is forfeited, at what minimum price can it be reissued:

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue $12\%$ Debentures of Rs. $100$ each at $10\%$ Discount and were to be redeemed at $25\%$ premium in such a way that they could arrange fund of Rs. $45,00,000$. At the time of issue of Debenture they also issued equity Share of Rs. $30,00,000$ at $20\%$ premium.What will be the amount of premium on Redemption of Debentures.

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue $12\%$ Debentures of Rs. $100$ each at $10\%$ Discount and were to be redeemed at $25\%$ premium in such a way that they could arrange fund of Rs. $45,00,000$. At the time of issue of Debenture they also issued equity Share of Rs. $30,00,000$ at $20\%$ premium.How much amount is to be debited in statement of profit and Loss to write off loss on Issue of Debentures?

What is the correct sequence of allotment of sharesA. Allotment money receivedB. Inviting applications from investorsC. Allotment DueD. Application money ReceivedE. Share Call Money DueChoose the correct answer from the options given below :

Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. $20$ lakh divided into $2$ lakh equity shares of Rs. $10$ each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue $1$ lakh equity share of Rs. $10$ each. The company issued $20,000$ equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for $46,000$ equity shares. Due to undersubscription of equity shares the shares were not issued to public. If the company is unable to get minimum subscription, the shares cannot be issued and the amount must be refunded within 8 days from the date of closure. If not, company shall be liable to pay ______$\%$ interest p.a.

Which A/c is credited for transfer of interest on Debenture Redemption Fund Investment?

Match List - I with List - II

Choose the correct answer from the options given below:

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue $12\%$ Debentures of Rs. $100$ each at $10\%$ Discount and were to be redeemed at $25\%$ premium in such a way that they could arrange fund of Rs. $45,00,000$. At the time of issue of Debenture they also issued equity Share of Rs. $30,00,000$ at $20\%$ premium.Debentures that will be redeemed only at the time of winding up of the company are known as:

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue $12\%$ Debentures of Rs. $100$ each at $10\%$ Discount and were to be redeemed at $25\%$ premium in such a way that they could arrange fund of Rs. $45,00,000$. At the time of issue of Debenture they also issued equity Share of Rs. $30,00,000$ at $20\%$ premium.Interest payable on the Debentures issued for the year ended Mar, 31st 2023 will be:

MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is:

Arrange the following legal requirements and processes in the correct logical order for a corporate "Buyback of Shares".A. The Articles of Association must explicitly authorize the buyback of shares.B. The entire buyback process must be completed within 12 months from the date of passing the resolution.C. The post-buyback debt-to-equity ratio must not exceed $2:1$.D. A Special Resolution must be passed during the general meeting.E. A formal Declaration of Solvency must be filed with the Registrar of Companies and SEBI.Choose the correct answer from the options given below:

Securities Premium reserve funds cannot be legally used for which of the following purposes?

Arrange the following steps in the correct sequence of the life of a company:(A) Commencement of Business(B) Incorporation(C) Promotion(D) FloatationChoose the correct answer from the options given below:

Case Study Information:Moonrise Co. is authorized with a Share Capital of ₹5,00,000. It issued 10,000 equity shares of ₹12 each (Face Value ₹10 + Premium ₹2).The money was payable as:₹4 on Application₹4 on Allotment (including premium of ₹2)₹4 on 1st and final callApplications were received for 12,000 shares and the directors decided to make a pro-rata allotment. Mr. Rashidi, an applicant for 120 shares, failed to pay the allotment and call money. Mr. Shantanu, a holder of 200 shares, failed to pay the call money. All these shares were forfeited. Out of the forfeited shares, 150 shares (including all of Rashidi's shares) were reissued at ₹8 per share.Question: The shares are reissued at a:

Match List-I with List-II:List-I(A) Share capital(B) Reserves and surplus(C) Reserve capital(D) Current liabilitiesList-II(I) Will be called at the time of winding up(II) Calls in advance(III) Subscribed but not fully paid(IV) Sinking fundChoose the correct answer from the options given below:

Match List I with List II

Choose the correct answer from the options given below:

Debentures are convertible into which of the following?

Case Study Information:Moonrise Co. is authorized with a Share Capital of ₹5,00,000. It issued 10,000 equity shares of ₹12 each (Face Value ₹10 + Premium ₹2).The money was payable as:₹4 on Application₹4 on Allotment (including premium of ₹2)₹4 on 1st and final callApplications were received for 12,000 shares and the directors decided to make a pro-rata allotment. Mr. Rashidi, an applicant for 120 shares, failed to pay the allotment and call money. Mr. Shantanu, a holder of 200 shares, failed to pay the call money. All these shares were forfeited. Out of the forfeited shares, 150 shares (including all of Rashidi's shares) were reissued at ₹8 per share.Question: The amount transferred to the Capital Reserve Account will be:

An issue of shares made by the company to the public in general for subscription is called :

Match List I with List II

Choose the correct answer from the options given below:

Case Study Information:Moonrise Co. is authorized with a Share Capital of ₹5,00,000. It issued 10,000 equity shares of ₹12 each (Face Value ₹10 + Premium ₹2).The money was payable as:₹4 on Application₹4 on Allotment (including premium of ₹2)₹4 on 1st and final callApplications were received for 12,000 shares and the directors decided to make a pro-rata allotment. Mr. Rashidi, an applicant for 120 shares, failed to pay the allotment and call money. Mr. Shantanu, a holder of 200 shares, failed to pay the call money. All these shares were forfeited. Out of the forfeited shares, 150 shares (including all of Rashidi's shares) were reissued at ₹8 per share.Question: The amount of Securities Premium Reserve to be debited at the time of forfeiture of shares will be:

The net balance of the Share Forfeiture Account is presented in the Balance Sheet under which item?

Nominal share capital is defined as:

The money received from applicants to whom no debentures have been allotted will be ________

Arrange the steps for the public issue of shares in the correct chronological order:(A) Allotment of shares(B) Issue of Prospectus(C) Share first call(D) Receipt of ApplicationsChoose the correct answer from the options given below:

When a company reserves a specific portion of its uncalled capital to be called up only in the event of liquidation or winding up, this capital is known as:

Instructions: Read the passage carefully and answer the following questions 46-50)XYZ Ltd is registered with an authorised capital of Rs. $20$ lakh divided into $2$ lakh equity shares of Rs. $10$ each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue $1$ lakh equity share of Rs. $10$ each. The company issued $20,000$ equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for $46,000$ equity shares. Due to undersubscription of equity shares the shares were not issued to public. The company issued $20,000$ equity shares of Rs. $10$ each to vendor. After issuing them the shares the vendor will be considered as:

Securities Premium Reserve can be used to:A. Issue new shares to existing shareholdersB. Write off Preliminary expensesC. Writing off of GoodwillD. Premium on Redemption of debenturesE. Issue fully paid Bonus SharesChoose the correct answer from the options given below:

According to regulatory guidelines, receiving the minimum subscription of $90\%$ of the entire public issue must be completed within how many days from the date of issue of the prospectus?

The following journal entry appears in the books of X Co. Ltd.:
$$\begin{array}{llcc}\text{Bank A/c}& \text{Dr.}& 4,75,000& \\ \text{Loss on issue of debenture A/c}& \text{Dr.}& 75,000& \\ \text{To }12\%\text{ Debentures A/c}& & & 5,00,000\\ \text{To Premium on Redemption of Debenture A/c}& & & 50,000\end{array}$$
Based on this entry, the debentures have been issued at a discount rate of:

As per the Companies Act, 2013, in general, the maximum time gap specified between two annual general meetings of a company is:

Which of the following combinations for the issue and redemption of debentures is not practically possible or permissible in general accounting?

ABC Ltd. issued $3,000$, $14\%$ Debentures of $\text{Rs. }100$ each at a discount of $5\%$ on April 1, 2023. What is the total discount amount on the issue of these debentures?

Raj Ltd. was registered with $70,000$ equity shares. They issued $40,000$ equity shares @ $10$ each payable as follow :On Application Rs. $4$ per shareOn Allotment Rs. $3$ per shareand Balance on $2$ callsThe issue was over subscribed by $50,000$ shares. The directors decided upon making prorata allotment to $60,000$ shares while remaining were returned.The portion of capital which the company does not issue to the public is known as :

Correct sequence of issue of shares is -A. Receipt of ApplicationB. Issue of ProspectusC. Letter of Allotment of SharesD. Letter of RegretChoose the correct answer from the options given below:

Z Ltd. issued 15,000, 12% Debentures of ₹100 each at a premium of 2% redeemable at a premium of 5%. In such a case:

\textbf{Case Study Description (Questions 46 to 50):}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued $50,000$ equity shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }5$ per share, payable as follows:\begin{itemize}\item On Application: $\text{Rs. }3$ per share\item On Allotment: $\text{Rs. }5$ per share (including $\text{Rs. }3$ Premium)\item On First Call: $\text{Rs. }5$ per share (including $\text{Rs. }2$ Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for $72,000$ shares. The Directors allotted $50,000$ shares on a pro-rata basis to applicants who applied for $65,000$ shares, rejecting the remaining applications. The excess application money received was adjusted against the amount due on allotment. All amounts due were received except for the first call from Rahul, who had applied for $2,600$ shares. His shares were forfeited immediately after the non-payment of the first call. These forfeited shares were later reissued at the minimum possible reissue price.Identify the correct journal entry to record the forfeiture of Rahul's shares:

Raj Ltd. was registered with $70,000$ equity shares. They issued $40,000$ equity shares @ $10$ each payable as follow :On Application Rs. $4$ per shareOn Allotment Rs. $3$ per shareand Balance on $2$ callsThe issue was over subscribed by $50,000$ shares. The directors decided upon making prorata allotment to $60,000$ shares while remaining were returned.The maximum amount that can be called up on the first call by the company is :

Match List-I with List-IIList-IList-II(A) Issued Capital(IV) It is that part of the authorised capital which is actually issued to the public for subscription(B) Uncalled Capital(III) That portion of the subscribed capital which has not yet been called up.(C) Reserve Capital(II) Capital which can be called only in the event of winding up of the company.(D) Subscribed Capital(I) It is that part of the issued capital which has been actually subscribed by the public.Choose the correct answer from the options given below:

Bajaj Sales Ltd. issues $20,000$ equity shares of Rs. $20$ each to the public. The amount is payable as,On application Rs. $4$ per shareOn allotment Rs. $4$ per shareOn first call Rs. $6$ per shareOn final call Rs. $6$ per shareAll money has been received on shares. Only one shareholder, who has $200$ shares could not pay allotment money and his shares have been forfeited before making first call. Forfeited shares have been re-issued at Rs. $18$ fully paid-up. What is the amount of capital reserve?

Shares can be forfeited :

\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued $50,000$ equity shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }5$ per share, payable as follows:\begin{itemize}\item On Application: $\text{Rs. }3$ per share\item On Allotment: $\text{Rs. }5$ per share (including $\text{Rs. }3$ Premium)\item On First Call: $\text{Rs. }5$ per share (including $\text{Rs. }2$ Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for $72,000$ shares. The Directors allotted $50,000$ shares on a pro-rata basis to applicants who applied for $65,000$ shares, rejecting the remaining applications. The excess application money received was adjusted against the amount due on allotment. All amounts due were received except for the first call from Rahul, who had applied for $2,600$ shares. His shares were forfeited immediately after the non-payment of the first call. These forfeited shares were later reissued at the minimum possible reissue price.Calculate the amount credited to the Bank account on account of the refund sent to rejected applicants:

Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. $20$ lakh divided into $2$ lakh equity shares of Rs. $10$ each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue $1$ lakh equity share of Rs. $10$ each. The company issued $20,000$ equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for $46,000$ equity shares. Due to undersubscription of equity shares the shares were not issued to public. The process of issuing shares to a vendor in exchange of any asset is known as:

Case Study Information (Questions 46-50):Moonrise Co. is authorized with a Share Capital of ₹5,00,000. It issued 10,000 equity shares of ₹12 each (Face Value ₹10 + Premium ₹2).The money was payable as:₹4 on Application₹4 on Allotment (including premium of ₹2)₹4 on 1st and final callApplications were received for 12,000 shares and the directors decided to make a pro-rata allotment. Mr. Rashidi, an applicant for 120 shares, failed to pay the allotment and call money. Mr. Shantanu, a holder of 200 shares, failed to pay the call money. All these shares were forfeited. Out of the forfeited shares, 150 shares (including all of Rashidi's shares) were reissued at ₹8 per share.Question: The Balance Sheet of the company will show the authorized capital of the company as:

\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued $50,000$ equity shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }5$ per share, payable as follows:\begin{itemize}\item On Application: $\text{Rs. }3$ per share\item On Allotment: $\text{Rs. }5$ per share (including $\text{Rs. }3$ Premium)\item On First Call: $\text{Rs. }5$ per share (including $\text{Rs. }2$ Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for $72,000$ shares. The Directors allotted $50,000$ shares on a pro-rata basis to applicants who applied for $65,000$ shares, rejecting the remaining applications. The excess application money received was adjusted against the amount due on allotment. All amounts due were received except for the first call from Rahul, who had applied for $2,600$ shares. His shares were forfeited immediately after the non-payment of the first call. These forfeited shares were later reissued at the minimum possible reissue price.Determine the amount to be transferred to the Capital Reserve Account upon the reissue of Rahul's shares:

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows:On Application Rs. 40 (including Rs.10 premium)On Allotment Rs. 30 (including Rs.10 premium)On First Call Rs. 30On Second and Final Call Rs. 20 Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment.Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment.Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediately after first Call.Second and final call was made. All the money due on second call have been received.Of the shares forfeited, 1,00,0 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares. Rohan to whom 600 shares were allotted must have applied for:

Amalgamation is a form of:

\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued $50,000$ equity shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }5$ per share, payable as follows:\begin{itemize}\item On Application: $\text{Rs. }3$ per share\item On Allotment: $\text{Rs. }5$ per share (including $\text{Rs. }3$ Premium)\item On First Call: $\text{Rs. }5$ per share (including $\text{Rs. }2$ Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for $72,000$ shares. The Directors allotted $50,000$ shares on a pro-rata basis to applicants who applied for $65,000$ shares, rejecting the remaining applications. The excess application money received was adjusted against the amount due on allotment. All amounts due were received except for the first call from Rahul, who had applied for $2,600$ shares. His shares were forfeited immediately after the non-payment of the first call. These forfeited shares were later reissued at the minimum possible reissue price.Identify the ratio in which the shares were allotted on a pro-rata basis:

The profit on reissue of forfeited shares is transferred to which of the following accounts?

The directors of a company forfeited $400$ equity shares of Rs. $10$ each fully called up on which Rs. $1,600$ had been paid. All the forfeited shares were reissued upon payment of Rs. $3,000$. Calculate the amount transferred to Capital Reserve

When the purchase consideration is more than the value of net assets taken over, the difference will be debited to:

\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued $50,000$ equity shares of $\text{Rs. }10$ each at a premium of $\text{Rs. }5$ per share, payable as follows:\begin{itemize}\item On Application: $\text{Rs. }3$ per share\item On Allotment: $\text{Rs. }5$ per share (including $\text{Rs. }3$ Premium)\item On First Call: $\text{Rs. }5$ per share (including $\text{Rs. }2$ Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for $72,000$ shares. The Directors allotted $50,000$ shares on a pro-rata basis to applicants who applied for $65,000$ shares, rejecting the remaining applications. The excess application money received was adjusted against the amount due on allotment. All amounts due were received except for the first call from Rahul, who had applied for $2,600$ shares. His shares were forfeited immediately after the non-payment of the first call. These forfeited shares were later reissued at the minimum possible reissue price.Before a company can legally forfeit a shareholder's shares for non-payment of calls, which corporate body is authorized and required to issue the formal forfeiture notice?

Uncalled capital that can be called up only in event of winding up of the company is called :

Match the specific debenture categories in List-I with their operational meanings outlined in List-II:List-IList-II(A) Unsecured Debentures(I) These debentures are issued with a specified rate of interest.(B) Redeemable Debentures(II) These debentures do not have a specific charge on the assets of the company.(C) Specific Coupon Rate Debentures(III) These are those which are payable on the expiry of a specific period either in lump sum or in instalments during the life-time of the company.(D) Bearer Debentures(IV) The debentures which can be transferred by way of delivery and the company does not keep any record of the debentures.Choose the correct answer from the options given below:

After the debentures are redeemed, the balance in the Sinking Fund Account is transferred to:

Match List-I with List-II and choose the correct answer from the options given below:List-I (Name of account to be debited or credited, when shares are forfeited)(A) Share Capital Account(B) Share Forfeited Account(C) Calls-in-arrears Account(D) Securities Premium AccountList-II (Amount to be debited or credited)(I) Debited with amount not received(II) Credited with amount not received(III) Credited with amount received towards share capital(IV) Debited with amount called up

Jain and Co. purchased a machine from Young Life Machine Limited for $\text{Rs. }3,80,000$. As per the purchase agreement, $\text{Rs. }20,000$ was paid in cash and the balance was settled by the issue of shares of $\text{Rs. }100$ each at a premium of $20\%$. How many shares were issued by Jain and Co.?

X Ltd. purchased assets from Y Ltd. for ₹98,10,000. X Ltd. issued 12% Debentures of ₹100 each at a 10% discount against the payment. The number of debentures issued to Y Ltd. is:

$400$ shares of $\text{₹ }50$ each issued at par were forfeited for non-payment of final call of $\text{₹ }10$ per share. These shares were reissued at $\text{₹ }45$ per share as fully paid-up. The amount transferred to capital reserve is:

When debentures are issued at premium with the term of redeeming them at par. The amount of premium received at the time of issue will be:

Based on the case study details provided, when XYZ Ltd. pays out the purchase consideration via the allotment of debentures, the vendor account (Blue Prints Ltd. Account) will be:

If a delay occurs beyond $8$ days in refunding the subscription amount, failing to gather the minimum subscription, from the date of closure of the subscription list, the company shall be liable for interest at the rate of:

While issuing the share capital for public subscription where there is no articles of association of its own, the following provisions of Table A will apply: (A) A period of one month must elapse between two calls.(B) The amount of call should not exceed 25% of the face value of the share.(C) A minimum of 7 days' notice is given to the shareholders to pay the amount.(D) Calls must be made on a uniform basis on all shares within the same class. Choose the correct answer from the options given below:

When own debentures are cancelled, any profit on cancellation is transferred to:

If a company issue Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5% but redeemable at premium of 5% then what amount will be debited to Loss on Issue of Debentures Account?

Match List - I with List - II.
$$\begin{array}{ll}\text{List - I (Share Capital Classifications)}& \text{List - II (Characteristics)}\\ \text{(A) Authorised Capital}& \text{(I) A portion of uncalled share capital to be called only during winding up}\\ \text{(B) Reserve Capital}& \text{(II) Maximum amount of share capital a company can raise during its lifetime}\\ \text{(C) Issued Capital}& \text{(III) Capital issued to the public for subscription}\\ \text{(D) Subscribed but not fully paid capital}& \text{(IV) Amount called up and received but not fully up to face value}\end{array}$$
Choose the correct answer from the options given below:

The important steps in the procedure of share issue are :(A) The company issues the prospectus to the public.(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.Choose the correct sequence of steps from the options given below:

Raj Ltd. was registered with $70,000$ equity shares. They issued $40,000$ equity shares @ $10$ each payable as follow :On Application Rs. $4$ per shareOn Allotment Rs. $3$ per shareand Balance on $2$ callsThe issue was over subscribed by $50,000$ shares. The directors decided upon making prorata allotment to $60,000$ shares while remaining were returned.The amount to be adjusted with the call of allotment will be :

Debenture Application & Allotment A/c Dr. 95,000Loss on Issue of Debentures A/c Dr. 10,000To 9% Debenture A/c 1,00,000To Premium on Redemption of Debentures A/c 5,000On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

According to Section 68 of the Companies Act, 2013, a company can buy back its own shares when which of the following conditions is satisfied?

The following journal entry appears in the books of X Co. Ltd.Bank A/c Dr. 4,75,000Loss on issue of debenture A/c Dr. 75,000To 12% Debentures A/c 5,00,000To Premium on Redemption of Debenture A/c 50,000In this case the debentures have been issued at a discount of 5% . What is the rate of premium on redemption of debentures?

As per the Companies Act, 1956, a company shall hold the first meeting of board of directors within how many days of the date of its incorporation?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What amount will be credited to Equity Share Application Account on February 10, 2024?

When a company issues shares in the open market and the amount is payable in instalments, what is the chronological sequence of structural amounts demanded/processed by the company? A. Money received on callsB. Money due on callsC. Allotment money receivedD. Application money transferred to Share Capital A/cE. Allotment money due Choose the correct answer from the options given below:

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What is the amount of Profit on reissue of Forfeited Shares Accounts transferred to capital reserve?

Romi Ltd. purchased building worth Rs. $1,50,000$ machinery worth Rs. $1,40,000$ and furniture worth Rs. $10,000$ from xyz co. and took over its liabilities of Rs. $20,000$ for a purchase consideration of Rs. $3,15,000$. They paid the purchase consideration by issuing $12\%$ debentures of Rs. $100$ each at a premium of $5\%$. What will be the number of debentures issued by Romi Ltd.

Convertible debentures cannot be issued at a discount if:

Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of $\text{Rs. }10,00,000$ is divided into shares of $\text{Rs. }10$ each, issued $50,000$ shares at a premium of $\text{Rs. }2$ per share payable as follows:On Application: $\text{Rs. }3$ per shareOn Allotment: $\text{Rs. }5$ per share (including premium)On First and Final call: Balance amountApplications were received for $60,000$ shares and the directors allotted shares to all on a proportionate (pro-rata) basis. All money was received except the first and final call from Hari who had applied for $1,200$ shares. His shares were forfeited and later half of his forfeited shares were reissued at $\text{Rs. }8$ per share as fully paid up.Question: Identify the total number of shares with which A Ltd is registered.

It is available only for the creditors on winding up of the company.

Who from the following regularly attends the office of a company?

Which of the following will be included in the journal entry when debentures are issued to a vendor at a discount for a purchase consideration other than cash?(A) % Debenture A/c is credited(B) Vendor A/c is debited(C) Discount on Issue of Debenture A/c is debited(D) Securities Premium Reserve A/c is creditedChoose the correct answer from the options given below:

Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of $\text{Rs. }10,00,000$ is divided into shares of $\text{Rs. }10$ each, issued $50,000$ shares at a premium of $\text{Rs. }2$ per share payable as follows:On Application: $\text{Rs. }3$ per shareOn Allotment: $\text{Rs. }5$ per share (including premium)On First and Final call: Balance amountApplications were received for $60,000$ shares and the directors allotted shares to all on a proportionate (pro-rata) basis. All money was received except the first and final call from Hari who had applied for $1,200$ shares. His shares were forfeited and later half of his forfeited shares were reissued at $\text{Rs. }8$ per share as fully paid up.Question: Select the total gross cash amount received by the bank specifically from the reissue of Hari's shares.

According to Table F of Schedule I of the Companies Act, 2013, the amount called up on any single call should not exceed ________ of the face value of shares.

Raj Ltd. was registered with $70,000$ equity shares. They issued $40,000$ equity shares @ $10$ each payable as follow :On Application Rs. $4$ per shareOn Allotment Rs. $3$ per shareand Balance on $2$ callsThe issue was over subscribed by $50,000$ shares. The directors decided upon making prorata allotment to $60,000$ shares while remaining were returned.Total applications received are for :

Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of $\text{Rs. }10,00,000$ is divided into shares of $\text{Rs. }10$ each, issued $50,000$ shares at a premium of $\text{Rs. }2$ per share payable as follows:On Application: $\text{Rs. }3$ per shareOn Allotment: $\text{Rs. }5$ per share (including premium)On First and Final call: Balance amountApplications were received for $60,000$ shares and the directors allotted shares to all on a proportionate (pro-rata) basis. All money was received except the first and final call from Hari who had applied for $1,200$ shares. His shares were forfeited and later half of his forfeited shares were reissued at $\text{Rs. }8$ per share as fully paid up.Question: The balance, if any, left in the share forfeited account relating strictly to the reissued shares, should be transferred to which account?

Calculate the amount of yearly interest payable on $9\%$ debentures ($10,000$ debentures of Rs. $100$) issued as collateral security.

What are different types of debentures from the view point of registration A. ConvertibleB. BearerC. RedeemableD. SecuredE. Registered Choose the correct answer from the options given below:

What is the correct sequence of types of capital in company's Balance sheet while preparing notes to accounts.A. Issued CapitalB. Subscribed and fully paid up capitalC. Share forfeited BalanceD. Authorised CapitalE. Subscribed but not fully paid up capital Choose the correct answer from the options given below:

Raj Ltd. was registered with $70,000$ equity shares. They issued $40,000$ equity shares @ $10$ each payable as follow :On Application Rs. $4$ per shareOn Allotment Rs. $3$ per shareand Balance on $2$ callsThe issue was over subscribed by $50,000$ shares. The directors decided upon making prorata allotment to $60,000$ shares while remaining were returned.Amount to be returned to the applicants due to non-allotment of shares will be :

Blue Prints Ltd. purchased a building worth Rs. $1,50,000$, Machinery worth Rs. $1,40,000$ and Furniture worth Rs. $10,000$ from XYZ Co. and took over its liabilities of Rs. $20,000$ for a purchase consideration of Rs. $3,15,000$.Calculate the Goodwill/Capital Reserve to be recorded by Blue Print Ltd.

Identify the correct sequence of steps in the process of the Issue of Shares:A. Making allotment of sharesB. Issue of ProspectusC. Forfeiture of sharesD. Receiving applications for sharesE. Making callsChoose the correct answer from the options given below:

A company can accept calls in advance, if authorised by: