R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-6

What will be the total assets (except cash) of the firm from the following: if Creditor ₹ 15,000, Partner’s loan ₹ 10,000, Partners’ capital ₹ 40,000. Cash in hand ₹ 5,000

1. ₹ 60,000
2. ₹ 65,000
3. ₹ 70,000
4. ₹ 55,000

✅ Correct Answer: 2

If the total assets are ₹ 3,25,000 and the total outside liabilities ₹ 45,000 then the amount of all partner’s capital will be:

1. ₹ 3,70,000
2. ₹ 2,80,000
3. ₹ 3,00,000
4. None of these

✅ Correct Answer: 2

Insolvency of a partner will come under what type of dissolution of a firm ?

1. Dissolutiuon by Court
2. Compulsory Dissolution
3. On happening of certain contingencies
4. None of these

✅ Correct Answer: 3

On firm’s dissolution, which one of the following account should be prepared at the last ?

1. Realisation Account
2. Partner’s Capital Accounts
3. Cash/Bank Account
4. Partner’s Loan Account

✅ Correct Answer: 3

On dissolution of a firm, realisation account is debited with:

1. All assets to be realised
2. All outside liabilities of the firm
3. Cash received on sale of assets
4. Any assets taken over by one of the partners

✅ Correct Answer: 1

On dissolution of a firm, out of the proceeds received from the sale of assets will be paid first of all:

1. Partner’s Capitals
2. Partner’s Loan to Firm
3. Partner’s additional capital
4. Outside Creditors

✅ Correct Answer: 4

Reserve share capital means :

1. Part of authorised capital to be called at the beginning
2. Portion of uncalled capital to be called only at liquidation
3. Over subscribed capital
4. Under subscribed capital

✅ Correct Answer: 2

When full amount is due on any call but it is not received, then the short fall is debited to :

1. Calls-in-advance
2. Calls-in-arrear
3. Share Capital
4. Suspense Account

✅ Correct Answer: 2

The difference between subscribed capital and called up capital is called :

1. Calls-in-arear
2. Calls-in-advance
3. Uncalled capital
4. None of these

✅ Correct Answer: 3

Which statement is issued before the issue of shares ?

1. Prospectus
2. Articles of Association
3. Memorandum of Association
4. All of these

✅ Correct Answer: 4

Company can utilise securities premium for :

1. Writing off loss incurred on revaluation of asset
2. Issuing fully paid bonus shares
3. Paying divided
4. Writing off trading loss

✅ Correct Answer: 2

When a company issues shares at a premium, amount of premium may be received by the company :

1. Along with application money
2. Along with application money
3. Along with calls
4. Along with any of the above

✅ Correct Answer: 4

Share Application Account is :

1. Personal Account
2. Real Account
3. Nominal/ Account
4. None of these

✅ Correct Answer: 1

Secrities Premium can not be applied :

1. For paying dividend to members
2. For issuing bonus shares to members
3. For writing off preliminary expenses of company
4. For writing off discount on issue of debentures

✅ Correct Answer: 1

A joint stock company is :

1. An artificial legal person
2. Natural person
3. A general person
4. None of these

✅ Correct Answer: 1

Equity shareholders are :

1. Customers
2. Creditors
3. Debtors
4. Owners

✅ Correct Answer: 4

Reserve capital means :

1. A part of subscribed uncalled capital
2. Reserve Profit
3. A part of Capital Reserve
4. A part of Capital Redemption Reserve

✅ Correct Answer: 1

Securities Premium is shown under which head in the Balance Sheet ?

1. Reserve and Surplus
2. Miscellaneous Expenditure
3. Current Liabilities
4. Share Capital

✅ Correct Answer: 1

Shares may be issued :

1. At par value
2. At FYemimum
3. At Discount
4. Both (a) & (b)

✅ Correct Answer: 4

Capital included in the liabilities of a company is called :

1. Authorised Capital
2. Issued Capital
3. Subscribed Capital
4. Paid-up Capital

✅ Correct Answer: 4

An issue of shares which is not a public issue but offered to a selected group of persons is called :

1. Public offer
2. Private placement of shares
3. Initial public offer
4. None of these

✅ Correct Answer: 4

If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the Share Capital Account should be debited with :

1. ₹ 8
2. ₹ 10
3. ₹ 6
4. ₹ 2

✅ Correct Answer: 1

When shares are forfeited, the Share Capital Account is debited with:

1. Nominal value of Shares
2. Market value of Shares
3. Called-up value of Shares
4. Paid-up value of Shares

✅ Correct Answer: 3

If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit is transferred to :

1. Capital Reserve
2. Revenue Reserve
3. Profit & Loss A/c
4. None of these

✅ Correct Answer: 1

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

1. ₹ 3,000
2. ₹ 2,000
3. ₹ 1000
4. Nil

✅ Correct Answer: 3

If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it can be reissued at the minimum price of…….

1. 10 Rs. per share
2. 8 Rs. per share
3. 5 Rs. per share
4. 2 Rs. per share

✅ Correct Answer: 4

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

1. 700 Rs.
2. 800 Rs.
3. 900 Rs.
4. 1,000 Rs.

✅ Correct Answer: 1

Forfeiture of shares results in the reduction of:

1. Paid-up Capital
2. Authorised Capital
3. Fixed Assets
4. Reserve Capital

✅ Correct Answer: 1

Amount of calls in Arrear is :

1. Added to capital
2. Deducted from share capital
3. Shown on the assets side
4. Shown an the equity and liability side

✅ Correct Answer: 2

Discount allowed on reissue of forfeited shares is debited to:

1. Share Capital A/c
2. Share Forfeiture A/c
3. Profit & Loss A/c
4. General Reserve A/c

✅ Correct Answer: 2

A company has…………

1. Separate Legal Entity
2. Perpetual Existence
3. Limited Liability
4. All the above

✅ Correct Answer: 4

The liability of members in a company is :

1. Limited
2. Unlimited
3. Stable
4. Fluctuating

✅ Correct Answer: 1

Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to :

1. Profit & Loss A/c
2. Capital Reserve Account
3. General Reserve Account
4. None of these

✅ Correct Answer: 2

Under the provisions of Companies Act, company can issue:

1. Only equity shares
2. Only preference shares
3. Preference shares and equity shares
4. None of these

✅ Correct Answer: 3

Reight shares are the shares, which :

1. Are issued to the Direction of the company
2. Are issued to existing shareholders of the company
3. Are issued to promoters in consideration of their services
4. Are issued to the vendors for purchasing assets

✅ Correct Answer: 2

Total amount of liabilities side includes :

1. Authorised Capital
2. Issued Capital
3. Subscribed Capital
4. Paid-up Capital

✅ Correct Answer: 4

A company issues its shares at premium under which Section of Indian Companies Act, 2013 ?

1. 78
2. 79
3. 52
4. 53

✅ Correct Answer: 3

Shares can be forfeited :

1. For failure to attend meetings
2. For non-payment of call money
3. For failure to repay the loan to the Bank
4. For which shares are pledged as a security

✅ Correct Answer: 2

Shareholders get:

1. Interest
2. Dividend
3. Commission
4. Profit

✅ Correct Answer: 2

According to Table E of the Companies Act, 2013 interest on calls in arrears charged should not exceed :

1. 5% p.a.
2. 6% p.a.
3. 8%p.a.
4. 10%p.a.

✅ Correct Answer: 4

Premium on issue of shares is a :

1. Capital Gain
2. Capital Loss
3. General Profit
4. General Loss

✅ Correct Answer: 1

Premium on issue of shares is shown on which side of the Balance sheet.

1. Assets
2. Liabilities
3. Both
4. None of these

✅ Correct Answer: 2

Share Allotment Account is :

1. Personal A/c
2. Real A/c
3. Nominal A/c
4. None of these

✅ Correct Answer: 1

The portion of the authorised capital which can be called-up only on the liquidation of the company is called:

1. Issued Capital
2. Called-up Capital
3. Uncalled Capital
4. Reserve Capital

✅ Correct Answer: 4

Premium on issue of shares can be used for :

1. Issue of Bonus shares
2. Distribution of Profit
3. Transferring to General Reserve
4. All these

✅ Correct Answer: 1

If equity share of ₹ 10 Rs. each is issued at ₹ 12 each, it is called:

1. Issued at Par
2. Issued at Premium
3. Issued at Discount
4. None of these

✅ Correct Answer: 2

The maximum capital beyond which a company is not allowed to raise funds, by issue of shares is called …………..

1. Issued capital
2. Reserve capital
3. Authorised capital
4. Subscribed capital

✅ Correct Answer: 2

As per Table F the maximum rate of interest on calls in advance paid is:

1. 8% p.a.
2. 12% p.a.
3. 5 % p.a.
4. None of these

✅ Correct Answer: 2

As per the Companies Act, only preference shares, which are redeemable within …………. can be issued.

1. 24 years
2. 22 years
3. 30 years
4. 20 years

✅ Correct Answer: 4

Which one of the following is the registered capital of the company ?

1. Paid-up capital
2. Uncalled capital
3. Authorised capital
4. Issued capital

✅ Correct Answer: 3