Accountancy M.C.Q (1 Marks)

3. ₹ 2,21,000.

3. ₹ 3,80,250.

3. It can be used for writing off capital losses.

2. Future

Explanation:

Valuation is the measurement of a firm, goodwill, etc. so that purchase consideration can be received in the future by the company selling its goodwill.

3. Authorised Capital

Explanation:

The maximum amount beyond which a company is not allowed to raise funds by issue of shares is authorized capital. Authorized capital, also known as nominal capital, represents the securities that are designated for shareholders.

2. Acquisition

Explanation:

The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.

2. Capital Reserve Account

Explanation:

When a company re-issues only a part of the forfeited shares, then it will transfer only the profit relating to this part to the capital reserve.

When a company re-issues shares at a price more than their face value, it shall transfer the excess amount to the Securities Premium A/c.

2. Discount

Explanation:

As per the rules of SEBI a company cannot issue shares on discount value. It may violate the rules of SEBI and the Section 53 of the Companies Act 2013.

A company cannot issue shares at a discount because the loss due to the discounted price is barely managed by any company. Moreover, it leads to the rising in unhealthy competition, companies which have been low graded may provide a discount to investors but at the same time, they fool them with their invaluable working.

Thus, to protect the interest of investors, company act 2013 has prohibited the issue of shares at a discounted rate.

1. Internal reconstruction

Explanation:

Internal reconstruction refers to the method of corporate restructuring wherein existing company is not liquidated to form a new one. External reconstruction is one in which the company undergoing reconstruction is liquidated to take over the business of existing company. New company. No new company is formed.

4. Paid-up capital

Explanation:

A capital dividend is typically not taxable for shareholders, as it is viewed as a return of the capital that investors pay in. Additionally, by paying out dividends from retained earnings, a company's struggles may worsen as its capital base shrinks, limiting investment and business opportunities in the future.

2. Capital reserve

Explanation:

Forfeited shares can be re-issued. Any amount of profit on re-issue is a capital receipt and should be transferred to capital reserve account because this profit is a capital gain for the company.

2. Shares

Explanation:

A company's capital is divided into small equal units of a finite number. Each unit is known as a share.

4. Board may consider the request from the defaulting ex-shareholder for the cancellation of forfeiture before the disposal of forfeited shares.

4. No interest is charged

Explanation:

In the absence of partnership agreement, no interest on drawings is charged from any partners.

1. Capital Suspense Account can be used in place of Annuity Suspense Account.

2. Guarantee

Explanation:

Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured.

3. 95%

Explanation:

As per the LIC Act, the Corporation has to distribute 95 per cent of its surplus to policyholders as bonuses, the balance of 5 per cent amounting to Rs 2,206.70 crore was the share of the government.

3. Rs. 4

4. None of these

Explanation:

Reissue of forfeited shares at a discount : When the shares forfeited arereissued at discount, Bank account is debited by the amount received and Share capital account is credited by the paid up amount. The amount of discount allowedis debited to Share Forfeited Account.

3. Transferred to Capital Reserve account

Explanation:

If the discount allowed on reissue of shares is less than the forfeited amount, there will be some balance left in the Forfeited Account, which should be transferred to capital reserve, because it is a profit of capital nature.

1. The holder of fully paid shares

Explanation:

The members of the company on the commencement of the business is known as contributory. As per section 428 of the companies act, 2013, every person who is liable yo contribute to the assets of the company at the time of its winding up or holder of a fully paid share is called as contributory.

1. 2 months

Explanation:

As per Section 79 of the Companies Act, 1956, the shares to be issued at a discount are issued within two months after the date on which the issue is sanctioned by the Company Law Board or within such extended time as the Company Law Board may allow.

2. Amalgamation

Explanation:

As per Indian companies act, 2013, when two or more companies combine to form a new company, it is called as amalgamation. It is basically done to increase cash resources, to decrease competition etc.

1. Rs.225

Explanation:

Share forfeited A/c contains only the forfeited amount of those shares which are not reissued yet. Forfeited amount of reissued shares are transferred to capital reserve.

Balance in Share forfeited A/c after reissue = Shares not reissued x Call money received on such shares

= 75 x 3

= Rs. 225

1. Amortized

Explanation:

When shares are issued at a price lower than the face value, they are said to be issued at discount.

Thus, the excess of the face value over the issue price is the amount of discount. This amount is written off from accumulated profits or from Profit statement.

3. 43(i)

Explanation:

As per section 43 (i) of company's act 2013, equity share capital‘‘, with reference to any company limited by shares, means all share capital which is not preference share capital,

2. Capital account

Explanation:

Interest can be paid on the proprietor's funds/capital also. It is treated like any other expense and is debited to the Profit and Loss Account and credited to the capital Account.

1. New class of shares

Explanation:

When Shares are issued at a price lower than their face value they are said to have been issued at a discount.

Shares can be issued at discount subject to the following conditions:

The shares must belong to a class already issued.

Discount rate should not be more than 10%.

2. ₹ 10.

3. Reserve Capital.

1. Total net assets/No of shares

Explanation:

To calculate the intrinsic value of a stock, first calculate the growth rate of the dividends by dividing the company's earnings by the dividends it pays to its shareholders.

4. Reserves and Surpluses

Explanation:

It is quite common for the shares of financially strong and well-managed companies to be issued at premium, i.e. at an amount more than the nominal or par value of shares.

Thus, when a share of the nominal value of Rs. 100 is issued at Rs. 105, it is said to have been issued at a premium of 5 percent.

When the issue of shares is at premium, the amount of premium may technically be called at any stage of the issue of shares.

2. Called up amount of shares

Explanation:

When the shares are forfeited, all accounting entries which were passed at the time of issue must be reversed.

Hence while forfeited, share capital account should be debited by the amount called up on shares.

1. Authorized by a special resolution passed by the company in general meeting.

2. Rs.100

3. Rs. 1,56,250 and Rs.68,750

2. Personal Account.

3. Dale of receipt of advance to the date of appropriation

Explanation:

Calls in Advance is the amount paid by shareholder before the due date.

The company provides interest on this amount to the shareholder.

The interest is paid on call in advance starting from the date when advance is recieved to the date when the amount has to be appropriated or recieved.

Thus, the interest on call in advance is pai for period from date of reciept to the date of appropriation.

2. Rs.5 lakhs

Explanation:

As per section 2(71) of companies act, 2013 “public company” means a company which—is not a private company; has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital, as may be prescribed.

1. Private circulation

Explanation:

The easiest way to sell shares of privately held stock is to get the company that issued them to buy them back. The process of a buyback is relatively simple. However, the sticking point is that the company must authorize a buyback, and if other shareholders want to sell their shares as well, then the company might not be willing to accommodate every shareholder's request.

1. Rs. 30

2. Called-up value of shares.

3. It may be transferred in fractions

Explanation:

Generally fractional shares cannot be transferred to another brokerage firm. If you decide to transfer your brokerage account to a different brokerage firm you may have to sell any fractional shares in your account.

4. All of the above

2. Book value

Explanation:

In case of other assets, the fair value may be determined by reference to the market value of the assets given up. Where the market value of the assets given up cannot be reliably assessed, such assets may be valued at their respective net book values.

1. Capital reserve

Explanation:

After writing off other accumulated loss, fictitious assets, patents to be written off as far as possible.

Capital Reserves to be continued in Balance Sheet and above are to be transferred in this A/c.

4. Part of issued capital subscribed by public plus issued for consideration other than cash.

Explanation:

As per section 2(86) of companies act, 2013 Subscribed share capital is that part of issued share capital for which company has received subscription from the investors. It is part of issued capital.

3. Reserve Capital.

2. 16,000

Explanation:

An equity issue of 1,00,000 equity share which are 80% of the share underwritten by the venturer. And, 80,000 share are subscribed by the public, hence, 20% share are remaining, so, 80,000 x 20% = 16,000 are to be subscribed by the venture.

2. Indemnity

Explanation:

When the purpose of insurance is to protect against loss of property due to an accident it is known as general insurance. Similarly if their is no loss of property their is no question of giving any compensation. For this reason general insurance is known as the contract of indemnity.