Forfeiture and Re-Issue of Shares

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

25 Que, 25 Marks

Your Name *

Address *

Contact No *

Mail id *

1- Balance of share forfeiture account, after re-issue, is transferred to-

1 point

Reserve Fund

Capital Reserve

General Reserve

None of the above

Clear selection

2- If a share of Rs.10 issued at a premium of Rs.2 on which the full amount has been called and Rs.7 (including premium) paid is forfeited, the Share capital Account should be debited with-

1 point

Rs.12

Rs.10

Rs.7

Rs.5

Clear selection

3- If a share of Rs.10 on which Rs.8 has been called and Rs.6 is paid forfeited, the Share capital Account should be debited with-

1 point

Rs.8

Rs.10

Rs.6

Rs.2

Clear selection

4- When shares are forfeited, the Share capital Account is debited with-

1 point

Nominal Value of Shares

Market value of Shares

Called-up Value of Shares

Paid-up Value of Shares

Clear selection

5- If the loss on reissue of shares is less then the amount forfeited, the 'surplus' of profit is transferred to-

1 point

Capital Reserve

Revenue Reserve

Profit & Loss A/c

None of the above

Clear selection

6- A company forfeited 2,000 shares of Rs.10 each (which were issued at per) held by A for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On Forfeiture, the amount debited to share capital is-

1 point

Rs.10,000

Rs.8,000

Rs.2,000

Rs.18,000

Clear selection

7- 500 shares of Rs.20 each issued at 5% discount rate forfeited for non-payment of allotment and final call money @ Rs.9 and Rs.5 respectively. Amount credited to Share Forfeiture A/c is-

1 point

Rs.2,000

Rs.2,500

Rs.3,000

Rs.7,000

Clear selection

8- J. Ltd. re-issued, 2,000 shares which were forfeited by crediting share forfeiture account by Rs.3,000. These shares were re-issued at Rs.9 per share. The amount transferred to capital reserve will be-

1 point

Rs.3,000

Rs.2,000

Rs.1,000

Nil

Clear selection

9- If a share of Rs.10 on which Rs.8 has been paid up is forfeited, it can be re-issued at the minimum price of.....-

1 point

Rs.10 per share

Rs.8 per share

Rs.5 per share

Rs.2 per share

Clear selection

10- Z & Co. forfeited 100 shares of Rs.10 each for non-payment of final call of Rs.2 per share. All the forfeited shares were re-issued at Rs.9 per share. what amount will be transferred to Capital reserve A/c?

1 point

Rs.700

Rs.800

Rs.900

Rs.1,000

Clear selection

11- Amul Ltd. forfeited 20 shares of Rs.10 each pf which Rs.4 per share were paid. What minimum price company must charge if the forfeited shares are re-issued?

1 point

Rs.2 Per Share

Rs.4 Per Share

Rs.6 Per Share

Rs.8 Per Share

Clear selection

12- Forfeiture of shares results in the reduction of -

1 point

Paid-up capital

Authorized capital

Fixed Capital

Reserve Capital

Clear selection

13- Share forfeiture Account is shown as in the Balance Sheet-

1 point

With Current Liabilities

With Non-current Liabilities

With General Reserve

With Paid-up Capital

Clear selection

14- The amount of discount on re-issue of shares cannot exceed-

1 point

10% of capital re-issued

5% of the paid-up capital

The amount received on forfeited shares

None of these

Clear selection

15- Discount allowed on re-issued of forfeited shares is debited to-

1 point

Profit & Loss A/c

General Reserve A/c

Share Capital A/c

Share Forfeiture A/c

Clear selection

16- If a Share of Rs.10 has been issued at a premium of Rs.1 on which Rs.9 (including premium) have been called and Rs.7 including premium has been paid is forfeited; the capital account should be debited by-

1 point

Rs.8

Rs.7

Rs.9

Rs.10

Clear selection

17- A company issued 5,000 equity shares of Rs.10 each at a discount of 1%. The final call of Rs.2 was not paid by Ajay who holds 300 shares and his shares were forfeited. Under such circumstances, Share Forfeited Account will be credited by-

1 point

Rs.2,800

Rs.3,000

Rs.2,100

Rs.2,700

Clear selection

18- Balance of Forfeited Shares Account after re-issued of forfeited shares is transferred to-

1 point

Profit & Loss Account

Capital Reserve Account

General Reserve Account

None of these

Clear selection

19- Share can be forfeited-

1 point

For failure to attend meetings

For non-payment of call money

For failure to repay the loan to the bank

For which shares are pledged as a security

Clear selection

20- Balance of Share Forfeiture Account is shown in the Balance Sheet under the item-

1 point

Current Liabilities and Provisions

Reserve and Surplus

Share capital Account

Unsecured Loans

Clear selection

21- Diwakar holds 2,000 shares of Rs.10 each of a company. On other these he paid application and allotment money of Rs.6 per share but failed to pay the first and final call of Rs.4 per share. His shares were forfeited. In this case amount received on these shares will be transferred to-

1 point

Share capital Account

First and Final Call A/c

Share forfeiture A.c

None of these

Clear selection

22- A, who was allotted 100 shares of Rs.10 each by a company, Failed to pay final call of Rs.4 per share. These shares were forfeited. Above shares were issued at 10% discount. These shares were re-issued @ Rs. 10 per share. In this case, 'Capital Reserve Account' will be credited by the amount-

1 point

Rs.300

Rs.500

Rs.600

Rs.200

Clear selection

23- Mohan, holding 900 shares failed to pay allotment money of Rs.2 per share and call money Rs.4 per share. His share were forfeited and out of these 600 shares were re-issued at rs.7 per share fully paid-up. The amount of Capital Reserve will be-

1 point

Rs.1,200

Rs.600

Rs.800

Rs.900

Clear selection

24- Find the balance of 'Share Forfeiture Account'-

1 point

Rs.1,200

Rs.600

Rs.800

Rs.900

Clear selection

25- X Ltd. forfeited 100 equity shares of Rs.10 each, Rs.7 called-up for non-payment of first call of Rs.2 each. Of these 80 shares were re-issued at Rs.6 per share, Rs.7 paid-up. Find the amount of Capital Reserve-

1 point

Rs.500

Rs.80

Rs.420

Rs.560

Clear selection

Submit

Clear form

Never submit passwords through Google Forms.

This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy

Forms