Accountancy and Financial Management IV
Accountancy and Financial Management 4 Second Year B.Com Sem 4 MCQ Collection
01) After redemption of debentures , balance in debenture redemption fund is transferred to ------
- Is transferred to profit &loss a/c
- Security premium
- General reserve a/c
- Revaluation reserve
Answer: General reserve a/c
02) If debentures are redeemed by conversion in to Equity shares of same amount then amount transferred to General reserve is----
- No amount is transferred
- Equal amount is transferred
- 50 % amount is transferred
- Two times amount is transferred
Answer: No amount is transferred
03) When debentures are redeemed out of profits, the amount transferred to General reserve should be-----
- Premium payable on redemption amount
- Payable on redemption
- Nominal value of debentures redeemed
- Any one of the above
Answer: nominal value of debentures redeemed
04) When debentures become due for redemption the entry is -------
- Debentures a/c debit to bank a/c
- Debentures a/c debit to debenture holders a/c
- Debenture holders a/c debit to bank a/c
- Bank a/c debit to debenture holders a/c
Answer: debentures a/c debit to debenture holders a/c
05) Loss on sale of sinking fund investment is -----
- debited to profit &loss a/c
- debited to sinking fund a/c
- debited to general reserve a/c
- Debentures a/c is credited
Answer: debited to profit &loss a/c
06) For calculating profit prior to incorporation Advertisement expenses are =====
- Allocated in sales ratio
- allocated in time ratio
- Debited to preincorporation
- debited to post incorporation
Answer: Allocated in sales ratio
07) For calculating profit prior to incorporation share transfer fees are-----
- debited to preincorporation period
- credited to post incorporation period
- allocated in saes ratio
- Allocated on time basis
Answer: credited to post incorporation period
08) A company can redeem preference shares ------
- At par
- At premium
- At discount
- any one of above as per agreement
Answer: any one of above as per agreement
09) A company cannot issue -------
- redeemable cumulative preference shares
- redeemable non cumulative preference shares
- Irredeemable preference shares
- redeemable participating preference shares
Answer: Irredeemable preference shares
10) called up capital less calls in arrears is equal to -----
- Authorised capital
- Subscribed capital
- reserve capital
- Paid up capital
Answer: Paid up capital
11) The unpaid dividend of any year will lapse in case of -----
- non cumulative preference shares
- participating preference shares
- cumulative preference shares
- non participating preference shares
Answer: non cumulative preference shares
12) The shares on which dividend is carried forward to next year when not paid in current year cumulative preference shares
- Common shares
- non cumulative preference shares
- participating preference shares
- None of the above
Answer: cumulative preference shares
13) If share of Rs.100 is issued at Rs.100 it is called -----
- Issue of shares at par
- issue of shares at premium
- issue of shares at discount
- any one of the above
Answer: Issue of shares at par
14) The amount to be collected on application of shares should be ------
- less than 5% of nominal value of shares
- more than 5% of nominal value of shares
- more than 10% of nominal value
- More than 15% of nominal value
Answer: more than 5% of nominal value of shares
15) A company can issue Bonus shares to ----
- Creditors only
- Workers only
- staff of office only
- Equity shareholders only
Answer: Equity shareholders only
16) A company can issue Right shares to ------
- Old employees only
- New employees only
- Preference shareholders only
- Equity shareholders only
Answer: Equity shareholders only
17) Bonus shares can be issued out of -----
- General reserve only
- security premium only
- Capital redemption reserve only
- all of the above
Answer: all of the above
18) Pro rata allotment of equity shares is done - when -----
- There is under subscription
- There is oversubscription
- When market value of share is high
- when market value of share is low
Answer: There is oversubscription
19) A company purchased machinery worth Rs.1,05000 and issues Equity shares of Rs. 10 each at Rs.10.50 per share then amount of premium will be----
- Rs.5000
- Rs.10000
- Rs.8000
- Rs.7000
Answer: Rs.5000
20) G ltd purchased assets worth Rs.7,50000 and issued Equity shares of Rs.100 each at a premium of 25% ,then number shares issued will be----
- 7500 shares
- 6000 shares
- 5625 shares
- 8000 shares
Answer: 6000 shares
21) The maximum amount of capital a company can issue is given in----
- Memorandum of association
- articles of association
- Prospectus
- Register of members
Answer: Memorandum of association
22) The rules regarding internal management of company are given in =
- Memorandum of association
- articles of association
- Prospectus
- Register of members
Answer: articles of association
23) If company redeems 1000 preference shares of Rs.100 each at 10% premium the amount payable to preference shareholders will be----
- Rs.1,00,000
- Rs.1,20,000
- Rs.90,000
- Rs.1,10,000
Answer: Rs.1,10,000
24) If company redeems 2,000 preference shares of Rs. 100 each at 15% discount then amount payable to preference shareholders will be
- Rs.2,00,000
- Rs.2,30,000
- Rs.1,70,000
- Rs.1,80,000
Answer: Rs.1,70,000
25) To calculate profit before incorporation Rent rates and taxes are ------
- debited to preincorporation period
- debited to post incorporation period
- Divided in sales ratio
- divided in time ratio
Answer: divided in time ratio