Roll No.

____________________
Name of the
student
(capital letters)
SYBBA
Section ( A / B /
C)
Subject
Assignment No.

Advanced Financial Accounting 1

1

Answer the following:

Total
Marks
Marks
(out of
15)

1) Private company Minimum no. of _______, Maximum No. of members_______. (Fill in the
blanks)
2) Public company Minimum no. of _______, Maximum No. of members_______.
3) Minimum Capital: Private company _______, Public company _________.
4) Minimum subscription in case of public company - ______ % of entire issue.
5) Interest on calls in arrear: ______% p.a.
6) Interest on calls in advance: _____% p.a.
7) Maximum rate of discount: _____% of the nominal value of share.
8) Which of the following capital is not shown in companys balance sheet:
a. Authorized capital
Put the answer in
b. Issued and subscribed capital
this box
c. Called up and paid up capital
8.
d. Reserve capital
9) Discount of issue of share shows debit balance and hence shown on the assets side of the
balance sheet under the head Miscellaneous expenditure: TRUE/FALSE
10)
Securities premium account is shown on the liabilities side of
9. the balance sheet
under the head:
a. Share capital
b. Reserves and surplus
c. Current liabilities
11)
As per section 78 of the companies act, amount collected as premium on securities
cannot be utilized for:
a. Issue of fully paid bonus shares to the members
b. Purchase of fixed assets
11.
c. Writing off preliminary expenses
d. Buy back of its own shares
e. Premium payable on redemption of preference share.
12)
Penalty for delay in refunding application money.
a. 6%
12.
b. 5%
c. 15%
d. 8%
13)
Securities premium once received cannot be cancelled. TRUE/FALSE.
13.
14)
15)
a.
b.
c.
d.

Redeemable preference share must be redeemed within:

_________years
Dividends are usually paid upon:
Paid up capital
Called up capital
15.
Issued capital
Reserve capital

16)
Authorized share capital of MOS limited is Rs. 3000,000 divided into 30,000 equity
shares of Rs. 100 each. Company issued 50% shares for the public at a premium of 40%.
Amount was called as under:
On Application Rs. 20, Allotment Rs 70 (including premium), and remaining in two equal
installments.
Company received application two times of the share issued. Allotment of the share
application was made as under:
Allotted full shares
4,000
th
Allotted 1/5 shares of the applications2,000
Allotted 2/3rd shares of the applications9,000
Remaining applications were rejected and the amount received on applications was
refunded.
Excess amount received on applications was credited towards the amount due on
allotment and call.
P, who was allotted 500 shares fully, paid the full amount of installment at the time of
allotment.
A, who was allotted 200 shares on the basis of 2/3 of the applications, failed to pay the
allotment money and her shares were forfeited after making first call. Forfeited shares
were re-issued at Rs.90 per share as fully paid up. Then the second call was made which
was fully subscribed.
Pass the necessary journal entries in the books of the company.

Please write you answer in the template attached on

next page (you dont need to submit this page)
http://cptcwa.blogspot.in/2013/02/mcq-on-issue-of-share-and-share-capital_5278.html
text book problem no. 21 sejal limited

Answer to problem no. 16

Marks

Journal Entries in the books of MOS limited

Sr.
No.

Sr.
No.

Particulars
On application money received
Bank A/c Dr.
To share Application A/c.

Particulars

L.F.
No.

L.F.
No.

Debit
(Rs.)

Debit
(Rs.)

Credit
(Rs.)

Dont
put your
answer
in this
column

Credit
(Rs.)

Dont
put your
answer
in this
column