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Vidaara.orgClass 12 · Mathematics
CodeVID-M12-WS
Company Accounts: Accounting for Share Capital — Practice Worksheet
Chapter: Company Accounts: Accounting for Share Capital
Topic: Company Accounts: Accounting for Share Capital
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
A company has a separate ____ from its members.
  • A.Bank account only
  • B.Legal entity
  • C.Address
  • D.Logo
2.
Shares with a fixed dividend paid before equity shares are:
  • A.Equity shares
  • B.Preference shares
  • C.Bonus shares
  • D.Deferred shares
3.
The maximum capital a company can raise is its ____ capital.
  • A.Paid-up
  • B.Authorised
  • C.Called-up
  • D.Subscribed
4.
The part of issued capital applied for by the public is ____ capital.
  • A.Authorised
  • B.Subscribed
  • C.Paid-up
  • D.Reserve
5.
The amount actually received against called-up capital is ____ capital.
  • A.Issued
  • B.Paid-up
  • C.Authorised
  • D.Nominal
6.
The excess of issue price over face value is the:
  • A.Discount
  • B.Securities premium
  • C.Dividend
  • D.Call
7.
Securities premium is credited to:
  • A.Share Capital A/c
  • B.Securities Premium Reserve A/c
  • C.Bank A/c
  • D.Calls A/c
8.
Money received on application is recorded as:
  • A.Bank A/c Dr; To Share Application A/c
  • B.Share Application A/c Dr; To Bank
  • C.Share Capital A/c Dr
  • D.Cash A/c Dr; To Capital
9.
Issuing shares at a discount is generally:
  • A.Allowed freely
  • B.Prohibited (except sweat equity)
  • C.Compulsory
  • D.Tax-free
10.
More applications than shares issued is called:
  • A.Under-subscription
  • B.Over-subscription
  • C.Forfeiture
  • D.Allotment
11.
An amount called but unpaid is:
  • A.Calls-in-advance
  • B.Calls-in-arrears
  • C.Premium
  • D.Reserve
12.
An amount paid before being called is:
  • A.Calls-in-arrears
  • B.Calls-in-advance
  • C.Dividend
  • D.Premium
13.
Cancelling shares for non-payment of calls is:
  • A.Re-issue
  • B.Forfeiture
  • C.Allotment
  • D.Buy-back
14.
On re-issue, the balance of the Forfeited Shares A/c goes to:
  • A.Capital Reserve
  • B.Securities Premium
  • C.Bank
  • D.Drawings
15.
Rs 6 received on a Rs 10 forfeited share, re-issued at Rs 8. Capital Reserve =
  • A.Rs 4
  • B.Rs 2
  • C.Rs 6
  • D.Rs 8
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A company issues 10,000 shares but receives applications for 15,000 and makes a pro-rata allotment to all. The excess application money is:
  • A.Adjusted towards allotment due
  • B.Always refunded fully
  • C.Treated as premium
  • D.Forfeited
17.
A Rs 10 share (premium Rs 2 on allotment) is forfeited after the holder paid application Rs 3 only; allotment Rs 6 (incl. premium) unpaid. On forfeiture, Securities Premium Reserve is:
  • A.Debited (cancelled), as the premium was never received
  • B.Credited
  • C.Untouched
  • D.Transferred to Capital Reserve
18.
1,000 shares of Rs 10 are forfeited after Rs 5 per share had been received; they are re-issued as fully paid for Rs 7 each. The Capital Reserve created is:
  • A.Rs 2,000
  • B.Rs 5,000
  • C.Rs 4,000
  • D.Rs 3,000
19.
Why is securities premium NOT available for paying ordinary cash dividends?
  • A.It is a capital receipt restricted by Section 52 to specified uses
  • B.It is an expense
  • C.It belongs to creditors
  • D.It is a loss
20.
Calls-in-advance, under Table F, may carry interest payable by the company up to:
  • A.12% p.a.
  • B.6% p.a.
  • C.10% p.a.
  • D.Nil
21.
On forfeiture of shares originally issued at par, the Share Capital Account is debited with the:
  • A.Called-up amount per share × number forfeited
  • B.Amount received only
  • C.Face value plus premium
  • D.Market price
22.
Authorised, issued, subscribed, called-up and paid-up capital are related as:
  • A.Authorised ≥ Issued ≥ Subscribed ≥ Called-up ≥ Paid-up
  • B.Paid-up ≥ Authorised
  • C.Issued ≥ Authorised
  • D.All equal always
23.
A shareholder holding 100 shares (Rs 10, Rs 7 called) has not paid the Rs 3 first call. Calls-in-arrears shown is:
  • A.Rs 300
  • B.Rs 700
  • C.Rs 1,000
  • D.Rs 100
24.
Maximum a company can normally allot is its:
  • A.Issued capital
  • B.Subscribed applications
  • C.Authorised capital exactly
  • D.Paid-up capital
25.
The Forfeited Shares Account balance before re-issue represents:
  • A.Money already received on the forfeited shares, held in suspense
  • B.A loss
  • C.Unpaid calls
  • D.Dividend payable

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Legal entity
  2. (B) Preference shares
  3. (B) Authorised
  4. (B) Subscribed
  5. (B) Paid-up
  6. (B) Securities premium
  7. (B) Securities Premium Reserve A/c
  8. (A) Bank A/c Dr; To Share Application A/c
  9. (B) Prohibited (except sweat equity)
  10. (B) Over-subscription
  11. (B) Calls-in-arrears
  12. (B) Calls-in-advance
  13. (B) Forfeiture
  14. (A) Capital Reserve
  15. (A) Rs 4
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Adjusted towards allotment due
  2. (A) Debited (cancelled), as the premium was never received
  3. (A) Rs 2,000
  4. (A) It is a capital receipt restricted by Section 52 to specified uses
  5. (A) 12% p.a.
  6. (A) Called-up amount per share × number forfeited
  7. (A) Authorised ≥ Issued ≥ Subscribed ≥ Called-up ≥ Paid-up
  8. (A) Rs 300
  9. (A) Issued capital
  10. (A) Money already received on the forfeited shares, held in suspense
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