HomeTestsSearchRankProfile

Share Capital Questions

Practice 285 Share Capital questions with detailed answers and explanations. Free MCQs, PYQs, and mock test questions for NEET, JEE, GATE, SSC and more.

📚
285
Total Questions
🟢
151
Easy
🟡
120
Medium
🔴
14
Hard
Practice by Exam:Accountancy(227)CUET Accountancy(57)Quantitative Aptitude(1)

About Share Capital — practice questions, PYQs & concepts

Share Capital is a frequently-tested topic on Accountancy, CUET Accountancy, Quantitative Aptitude. ExamTest.live currently lists 285 Share Capital questions spanning previous-year papers from 2026 to 2026, each with worked solutions and a step-by-step explanation. Use the filters on this page to focus on a specific exam, difficulty level or year — every answer key is free, no sign-up required.

Share Capital weight in competitive exams

Across our Share Capital question bank, the largest sources are Accountancy (227), CUET Accountancy (57) and Quantitative Aptitude (1). Click any exam chip above to drill down to that exam-specific question set.

How to use this page

  • Start easy: 151 easy Share Capital questions are available — build fluency before moving up.
  • Target weak years: Use the year filter to focus on the most recent 2026 paper or older PYQs you have not attempted.
  • Time yourself: Every question shows the average solve time so you can benchmark your speed against other students.
  • Read every explanation: Even on questions you got right — the explanation often surfaces a faster approach you can reuse.

All Share Capital Questions(1–100 of 285)

3 pages
Filter:
Q1easymcqAccountancyCUET Accountancy 2023 28 May Shift 12026
33% accuracy
Find the correct sequential operational procedure for the public issue of shares by a joint-stock company:(A) Receipt of Applications(B) Issue of prospectus(C) Allotment of Shares(D) Making call money due(E) Receiving Call moneyChoose the correct answer from the options given below:
Q2easymcqAccountancyCUET Accountancy 2023 28 May Shift 12026
33% accuracy
Under which Sub-head do we show the Securities Premium in the Balance Sheet of a company?
Q3mediummcqAccountancyCUET Accountancy 2023 28 May Shift 12026
0% accuracy
Match List - I with List - II according to SEBI Guidelines and the Companies Act, 2013:
|l|l|- I & - II \ (A) Application money must be at least ____% of the face value of the share & (I) 25% \(B) The amount of a single Call should not exceed ____% of the face value of the share & (II) 90% \(C) Minimum subscription cannot be less than ____% of the issued amount under SEBI guidelines & (III) 10% \(D) Max interest charged on call-in-arrears under Table F is @ ____% p.a. & (IV) 5% \
Choose the correct answer from the options given below:
Q4easymcqAccountancyCUET Accountancy 2023 28 May Shift 12026
33% accuracy
Match List - I with List - II.
|l|l|- I & - II \ (A) Over-Subscription & (I) Minimum amount that must be raised by issue of shares \(B) Minimum subscription & (II) Application received is more than shares issued \(C) Under-Subscription & (III) Allotment of shares without issue of prospectus \(D) Private Placement & (IV) Application received is less than shares issued \
Choose the correct answer from the options given below:
Q5easymcqAccountancyCUET Accountancy 2023 28 May Shift 12026
0% accuracy
Match List - I with List - II.
image
Choose the correct answer from the options given below:
Q6easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Arrange Categories of Share Capital into correct order-(A) Subscribed Capital(B) Authorised Capital(C) Issued Capital(D) Called up CapitalChoose the correct answer from the options given below:
Q7easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
The balance of the Share Forfeiture Account will be shown in the Balance Sheet of the Company, under the head of :
Q8easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
As a general rule, a company cannot ordinarily issue shares at ..................?
Q9easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Money received in advance from shareholders before it is actually called-up by the directors is :
Q10easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Jindal and Company purchased a machine from High Life Machine Limited for . As per purchase agreement, were paid in cash and balance by issue of shares of each. Find the number of shares issued, if they are issued at par:
Q11hardmcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
[Context based on Mona Ltd.] Out of the forfeited shares, shares were reissued at per share fully paid up, including the whole of Mr. Sharma's shares ( shares). The remaining shares were from Mr. Verma's forfeited shares (who held shares and failed to pay call money).Calculate the amount transferred to the Capital Reserve.
Q12hardmcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
[Context based on Mona Ltd.] What is the balance remaining left over in the Share Forfeiture Account after the reissue of shares?
Q13mediummcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
When journal entry for forfeiture of shares is recorded in the Company's books, the Share Capital Account -
Q14mediummcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
[Context based on Mona Ltd.] Calculate the net amount received on the First and Final Call.
Q15easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Match List-I with List-II

Choose the correct answer from the options given below:
Q16hardmcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
Mona Ltd. issued shares of each at per share (Premium ).Application: Allotment: (including premium of )First & Final Call: Applications were received for shares and pro-rata allotment was made. Mr. Sharma, who applied for shares, failed to pay allotment and call money. Calculate the total net amount received by the company on allotment.
Q17easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Interest on calls in advance is provided at a rate not exceeding ........ as per "Table F":
Q18hardmcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
[Context based on Mona Ltd.] At the time of forfeiture, the Securities Premium Reserve Account will be debited for how many shares?
Q19mediummcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
Sunena, a shareholder holding shares of each, did not pay the allotment money of per share (including a premium of ) and the first and final call of . Her shares were forfeited after the first and final call. Choose the correct journal entry for forfeiture of the shares.
Q20easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
The Profit on reissue of forfeited shares is transferred to :
Q21easymcqCUET AccountancyCUET 2025 31 May Shift 12026
0% accuracy
State which of the following combination of statements are true about the Company-(A) A company is an artificial person.(B) Capital reserves are created from capital profits.(C) Shareholders of a company are liable for the acts of the company.(D) A company's shares are generally transferable.Choose the correct answer from the options given below:
Q22easymcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
Hero Ltd. started a new venture of making casual shirts. The directors decided to issue shares of each at each. The following assets were purchased by the company:A building of lakhsFurniture of lakhsMachinery of lakhsThe company purchased cloth of lakhs and paid wages to the workers. The Directors also decided to buy shares of TATA Ltd. of each and at the end of the year Tata Ltd. paid as dividend.Security Premium Reserve can be used by Hero Ltd. for:
Q23hardmcqAccountancyCUET Accountancy 2023 29 May Shift 22026
Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of is divided into shares of each, issued shares at a premium of per share payable as follows:On Application: per shareOn Allotment: per share (including premium)On First and Final call: Balance amountApplications were received for 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 shares. His shares were forfeited and later half of his forfeited shares were reissued at 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.
Q24mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
Premium on issue of shares can be used for:
Q25mediummcqAccountancyCUET Accountancy 2023 11 June Shift 32026
State the correct order of categories of Share Capital as shown in 'Notes to Accounts' of Balance Sheet of a company.(A) Subscribed and Fully paid up Capital(B) Issued Capital(C) Subscribed but not fully paid up Capital(D) Authorised Capital(E) Share forfeited AccountChoose the correct answer from the options given below:
Q26mediummcqAccountancyCUET Accountancy 2023 11 June Shift 32026
The paid up share capital of "One Person Company" cannot be more than:
Q27easymcqAccountancyCUET Accountancy 2023 29 May Shift 22026
Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of is divided into shares of each, issued shares at a premium of per share payable as follows:On Application: per shareOn Allotment: per share (including premium)On First and Final call: Balance amountApplications were received for 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 shares. His shares were forfeited and later half of his forfeited shares were reissued at per share as fully paid up.Question: Identify the total number of shares with which A Ltd is registered.
Q28mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
Amalgamation is a form of:
Q29mediummcqAccountancyCUET Accountancy 2023 29 May Shift 22026
Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of is divided into shares of each, issued shares at a premium of per share payable as follows:On Application: per shareOn Allotment: per share (including premium)On First and Final call: Balance amountApplications were received for 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 shares. His shares were forfeited and later half of his forfeited shares were reissued at 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?
Q30mediummcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Raj Ltd. was registered with equity shares. They issued equity shares @ each payable as follow :On Application Rs. per shareOn Allotment Rs. per shareand Balance on callsThe issue was over subscribed by shares. The directors decided upon making prorata allotment to shares while remaining were returned.Amount to be returned to the applicants due to non-allotment of shares will be :
Q31mediummcqAccountancyCUET Accountancy 2023 11 June Shift 32026
Match List - I with List - II.

Choose the correct answer from the options given below:
Q32mediummcqAccountancyCUET Accountancy 2022 20 July Shift 12026
PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is:
Q33mediummcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
All of them are shown under the sub-heading 'Reserve and Surplus' except :
Q34easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
According to regulatory guidelines, receiving the minimum subscription of of the entire public issue must be completed within how many days from the date of issue of the prospectus?
Q35mediummcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Raj Ltd. was registered with equity shares. They issued equity shares @ each payable as follow :On Application Rs. per shareOn Allotment Rs. per shareand Balance on callsThe issue was over subscribed by shares. The directors decided upon making prorata allotment to shares while remaining were returned.The maximum amount that can be called up on the first call by the company is :
Q36mediummcqAccountancyCUET Accountancy 2022 20 July Shift 12026
Match List - I with List - II
image
Choose the correct answer from the options given below:
Q37easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
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:
Q38easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued equity shares of each at a premium of per share, payable as follows:\begin{itemize}\item On Application: per share\item On Allotment: per share (including Premium)\item On First Call: per share (including Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for shares. The Directors allotted shares on a pro-rata basis to applicants who applied for 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 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:
Q39easymcqAccountancyCUET Accountancy 2022 20 July Shift 12026
If a share of Rs. 100 on which Rs. 45 has been paid is forfeited, at what minimum price can it be reissued:
Q40hardmcqAccountancyCUET Accountancy 2023 20 June Shift 22026
\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued equity shares of each at a premium of per share, payable as follows:\begin{itemize}\item On Application: per share\item On Allotment: per share (including Premium)\item On First Call: per share (including Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for shares. The Directors allotted shares on a pro-rata basis to applicants who applied for 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 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:
Q41easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
The net balance of the Share Forfeiture Account is presented in the Balance Sheet under which item?
Q42mediummcqAccountancyCUET Accountancy 2022 20 Aug Shift 22026
The Directors of Tivoli Plastics Ltd. resolved that equity shares of Rs. each be Forfeited for non-payment of the second and final call of Rs. per share. Out of these, shares were reissued at Rs. per share as fully paid-up. How much amount will be transferred to Capital Reserve Account?
Q43mediummcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q44easymcqAccountancyCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026
Oversubscription is a situation where the:
Q45easymcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
Nominal share capital is defined as:
Q46easymcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q47easymcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
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:
Q48easymcqCUET AccountancyCUET Accountancy 2025 30 May Shift 22026
Shares can be forfeited:
Q49mediummcqAccountancyCUET Accountancy 2022 30 Aug Shift 22026
Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. 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 lakh equity share of Rs. each. The company issued 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 equity shares. Due to undersubscription of equity shares the shares were not issued to public. In order to raise money by issuing the shares in the market the company must get applications for at least ____.
Q50easymcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Forfeiture of shares results in the reduction of :
Q51mediummcqAccountancyCUET Accountancy 2022 20 Aug Shift 22026
The directors of a company forfeited equity shares of Rs. each fully called up on which Rs. had been paid. All the forfeited shares were reissued upon payment of Rs. . Calculate the amount transferred to Capital Reserve
Q52mediummcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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 total amount of Securities Premium Reserve credited at the time of the allotment of shares will be:
Q53easymcqAccountancyCUET Accountancy 2025 13 May Shift 22026
Arrange the following stages of share capital transactions in their correct chronological operational sequence:(A) Share Allotment(B) Share Application(C) Share forfeiture(D) Share CallChoose the correct answer from the options given below:
Q54mediummcqAccountancyCUET Accountancy 2025 13 May Shift 22026
Consider the following statements regarding a joint-stock company:(A) A company's shares are generally freely transferable.(B) Shareholders of a company are personally liable for the acts of the company.(C) The director of a company must always be a shareholder.(D) Paid-up capital can exceed called-up capital.Note: This question was dropped from the official key due to errors in statement designs. Let's evaluate the correct conceptual stance.
Q55easymcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q56easymcqAccountancyCUET Accountancy 2025 14 May Shift 12026
Excess value of net assets over purchase consideration at the time of purchase of business is credited to
Q57mediummcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used :(A) To write-off preliminary expenses of the company(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company(C) To pay premium on the redemption of preference shares or debentures(D) To write off discount allowed on the goods sold on creditChoose the correct answer from the options given below :
Q58easymcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
Who from the following regularly attends the office of a company?
Q59easymcqAccountancyCUET Accountancy 2025 14 May Shift 12026
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, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman's shares. Choose journal entries in the books of High Light India Ltd on receiving Application money :
Q60mediummcqAccountancyCUET Accountancy 2023 29 May Shift 22026
Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of is divided into shares of each, issued shares at a premium of per share payable as follows:On Application: per shareOn Allotment: per share (including premium)On First and Final call: Balance amountApplications were received for 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 shares. His shares were forfeited and later half of his forfeited shares were reissued at per share as fully paid up.Question: Identify the account to which the discount allowed on the reissue of forfeited shares should be debited.
Q61mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
As per the Companies Act, 2013, in general, the maximum time gap specified between two annual general meetings of a company is:
Q62hardmcqAccountancyCUET Accountancy 2023 29 May Shift 22026
Based on the following passage, answer questions from 41 to 45:A Ltd with an Authorised Capital of is divided into shares of each, issued shares at a premium of per share payable as follows:On Application: per shareOn Allotment: per share (including premium)On First and Final call: Balance amountApplications were received for 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 shares. His shares were forfeited and later half of his forfeited shares were reissued at per share as fully paid up.Question: Select the exact net cash amount received on the Share Allotment Account.
Q63easymcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Raj Ltd. was registered with equity shares. They issued equity shares @ each payable as follow :On Application Rs. per shareOn Allotment Rs. per shareand Balance on callsThe issue was over subscribed by shares. The directors decided upon making prorata allotment to shares while remaining were returned.Total applications received are for :
Q64mediummcqAccountancyCUET Accountancy 2023 29 May Shift 22026
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:
Q65mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
When shares are forfeited, capital account is debited by:
Q66mediummcqAccountancyCUET Accountancy 2023 29 May Shift 22026
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?
Q67easymcqAccountancyCUET Accountancy 2022 30 Aug Shift 22026
Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. 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 lakh equity share of Rs. each. The company issued 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 equity shares. Due to undersubscription of equity shares the shares were not issued to public.The following refer to the maximum amount of share capitals issued by a company in its life times except:
Q68mediummcqAccountancyCUET Accountancy 2023 11 June Shift 32026
Calculate the amount of Dividend paid during the year 2022 from the following information:Balance of Proposed Dividend as on 31st March, 2021 was Rs. and on 31st March, 2022 Rs. . Interim Dividend was paid @ on share capital. Share capital was Rs. .
Q69mediummcqAccountancyCUET Accountancy 2022 20 July Shift 12026
Identify the statement that is/are not true from the following.(a) Shares can be forfeited for non payment of call money.(b) The profit on forfeited shares is transferred to capital reserve.(c) Balance of share forfeiture account is shown in the balance sheet under reserves and surplus.(d) Application money should be at least 10% of the face value of the share.Choose the correct answer from the options given below:
Q70easymcqAccountancyCUET Accountancy 2023 11 June Shift 32026
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:
Q71easymcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Raj Ltd. was registered with equity shares. They issued equity shares @ each payable as follow :On Application Rs. per shareOn Allotment Rs. per shareand Balance on callsThe issue was over subscribed by shares. The directors decided upon making prorata allotment to shares while remaining were returned.The portion of capital which the company does not issue to the public is known as :
Q72easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
Securities Premium reserve funds cannot be legally used for which of the following purposes?
Q73easymcqAccountancyCUET Accountancy 2022 20 July Shift 12026
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:
Q74mediummcqAccountancyCUET Accountancy 2023 20 June Shift 22026
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 .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:
Q75easymcqAccountancyCUET Accountancy 2022 30 Aug Shift 22026
Instructions: Read the passage carefully and answer the following questions 46-50)XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. 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 lakh equity share of Rs. each. The company issued 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 equity shares. Due to undersubscription of equity shares the shares were not issued to public. The company issued equity shares of Rs. each to vendor. After issuing them the shares the vendor will be considered as:
Q76hardmcqAccountancyCUET Accountancy 2023 20 June Shift 22026
\textbf{Case Study Description (Questions 46 to 50):}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued equity shares of each at a premium of per share, payable as follows:\begin{itemize}\item On Application: per share\item On Allotment: per share (including Premium)\item On First Call: per share (including Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for shares. The Directors allotted shares on a pro-rata basis to applicants who applied for 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 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:
Q77mediummcqAccountancyCUET Accountancy 2022 20 July Shift 12026
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:
Q78mediummcqAccountancyCUET Accountancy 2023 20 June Shift 22026
\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued equity shares of each at a premium of per share, payable as follows:\begin{itemize}\item On Application: per share\item On Allotment: per share (including Premium)\item On First Call: per share (including Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for shares. The Directors allotted shares on a pro-rata basis to applicants who applied for 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 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:
Q79hardmcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Raj Ltd. was registered with equity shares. They issued equity shares @ each payable as follow :On Application Rs. per shareOn Allotment Rs. per shareand Balance on callsThe issue was over subscribed by shares. The directors decided upon making prorata allotment to shares while remaining were returned.The amount to be adjusted with the call of allotment will be :
Q80easymcqAccountancyCUET Accountancy 2023 20 June Shift 22026
\textbf{Case Study Description:}Review the share allotment data for Eicher Ltd. to answer the questions:Eicher Ltd. issued equity shares of each at a premium of per share, payable as follows:\begin{itemize}\item On Application: per share\item On Allotment: per share (including Premium)\item On First Call: per share (including Premium)\item On Final Call: Balance amount\end{itemize}Applications were received for shares. The Directors allotted shares on a pro-rata basis to applicants who applied for 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 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?
Q81easymcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q82mediummcqAccountancyCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026
If a delay occurs beyond 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:
Q83easymcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
An issue of shares made by the company to the public in general for subscription is called :
Q84easymcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
Which of the following is NOT a characteristic of a corporate company structure?
Q85easymcqCUET AccountancyCUET Accountancy 16 July Shift 22026
When the purchase consideration is more than the value of net assets taken over, the difference will be debited to:
Q86mediummcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
Which of the following statements are correct?(A) A company is an artificial person.(B) Company's shares are generally transferable.(C) Paid-up capital can exceed called-up capital.(D) The part of capital which is called up only on winding up is called reserve capital.Choose the correct answer from the options given below:
Q87mediummcqAccountancyCUET Accountancy 2022 20 Aug Shift 22026
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:
Q88easymcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
Which section of the Indian Companies Act, 2013 clarifies the legal classification of share capital into Equity shares and Preference shares?
Q89hardmcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q90easymcqCUET AccountancyCUET Accountancy 2025 13 May Shift 12026
Match List-I with List-II:List-IList-II(A) Authorised Capital(I) Capital which is actually issued to the public for subscription including the shares allotted to vendors and the signatories to the company's memorandum.(B) Issued Capital(II) It is that part of the subscribed capital which has been called up on the shares, i.e., what the company has asked the shareholders to pay.(C) Subscribed Capital(III) The amount of share capital which a company is authorised to issue by its Memorandum of Association.(D) Called up Capital(IV) 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:
Q91mediummcqAccountancyCUET Accountancy 2022 30 Aug Shift 22026
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:
Q92easymcqAccountancyCUET Accountancy 2025 13 May Shift 22026
Match List-I with List-II based on company share capital terminology:List-IList-II(A) Reserve Capital(I) That portion of the subscribed capital which has not yet been called up.(B) Uncalled Capital(II) It is that part of the issued capital which has been actually subscribed by the public.(C) Paid-up Capital(III) A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company.(D) Subscribed Capital(IV) It is that portion of the called-up capital which has been actually received from the shareholders.Choose the correct answer from the options given below:
Q93hardmcqCUET AccountancyCUET Accountancy 16 July Shift 22026
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:
Q94easymcqAccountancyCUET Accountancy 2025 14 May Shift 12026
Steps for Forfeiture of Shares-(A) Issue of Prospectus(B) Shares Forfeiture(C) Receipt of Application(D) Allotment of SharesChoose the correct answer from the options given below:
Q95mediummcqAccountancyCUET Accountancy 2022 20 Aug Shift 22026
Match List I with List II
image
Choose the correct answer from the options given below:
Q96mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
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?
Q97easymcqAccountancyCUET Accountancy 2022 30 Aug Shift 22026
Instructions: Read the passage carefully and answer the following questions 46-50) XYZ Ltd is registered with an authorised capital of Rs. lakh divided into lakh equity shares of Rs. 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 lakh equity share of Rs. each. The company issued 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 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:
Q98easymcqAccountancyCUET Accountancy 2022 23 Aug Shift 2 PYQs2026
Uncalled capital that can be called up only in event of winding up of the company is called :
Q99mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
Which from the following is also known as 'Vertical Organisation'?
Q100mediummcqAccountancyCUET Accountancy 2022 8 Aug Shift 22026
A company issues a share of Rs. on which Rs. is called-up and a shareholder has not paid the call of Rs. . The amount credited to share capital in respect of such shares will be:
123

Frequently Asked Questions

How many Share Capital questions are on ExamTest.live?▼
We have 285 Share Capital questions spread across 3 pages, covering easy, medium, and hard difficulty levels with detailed explanations.
Are Share Capital MCQs free?▼
Yes. All Share Capital questions, answers, and explanations on ExamTest.live are completely free. No account or subscription required.
Which exams include Share Capital questions?▼
Share Capital questions are commonly asked in Accountancy, CUET Accountancy, Quantitative Aptitude. You can filter by exam using the links above.
How do I practice Share Capital questions effectively?▼
Start with easy questions to build confidence, then tackle medium and hard ones. Use the filter buttons to sort by difficulty. Reveal the answer only after attempting each question, and read the explanation thoroughly.