ISC ACCOUNTS SHARES MCQs with solved Answers
ISC ACCOUNTS SHARES MCQs with solved Answers Question 1

Question 1

BHARAT  Ltd issued for public subscription 40,000 equity shares of ₹ 10 each. Application received for 50,000 shares. 40,000 shares allotted to 50,000 applicants on a pro-rata basis and Excess application money adjusted with allotment. The amount payable as under:
  On application ₹ 2 per share,
  on allotment ₹ 5 per share,
  on first and Final call ₹ 3 per share.

A shareholder who applied for 1,000 shares failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at ₹12 per share fully paid up

(i) At the time of forfeiture of shares, the Share Capital A/c was debited with:
(a) ₹ 8,000
(b) ₹ 10,000
(c) ₹ 12,000
(d) ₹ 7,000

(ii) The shares were forfeited for non-payment of:
(a) ₹ 10 per share
(b) ₹ 9 per share
(c) ₹ 12 per share
(d) ₹ 7 per share
(iii) At the time of reissue of shares, the Bank A/c was debited with:
(a) ₹ 9,300
(b) ₹ 10,000
(c) ₹ 9,600
(d) ₹ 12,000
(iv) At the time of reissue of shares, the Share Capital A/c was credited with:
(a) ₹ 8,000
(b) ₹ 7,000
(c) ₹ 10,000
(d) ₹ 1,400
(v) At the time of reissue of shares, the account credited with ₹ 1,600 was:
(a) Calls-in-arrears A/c
(b) Capital Reserve A/c
(c) Securities Premium Reserve A/c
(d) None of the above
(vi) After re-issue of shares, the account transferred to capital Reserve :
(a) ₹ 5,600
(b) ₹ 4,000
(c) ₹ 7,200
(d) None of the above

Answer – Question 1
(i) Answer- (a) ₹ 8,000
Note: Find out the share allotted to shareholders.

(ii) Answer- (d) ₹ 7 per share

(iii) Answer- (c) ₹ 9,600

(iv)  Answer-(a) ₹ 8,000
(v) Answer-(c) Securities Premium Reserve A/c

(vi) Answer-(a) ₹ 5,600

ACCOUNTANCY Issue Of Shares MCQs With Solved Answers

ISC ACCOUNTS SHARES MCQs with solved Answers Question 2

Question 2

Vijay Ltd. was formed on 1st April, 2019, with an authorized capital of ₹ 50,00,000 divided into equity shares of ₹ 10 each.
It invited applications for 60,000 shares to be issued at par, in the year of its formation, all of which were subscribed for and the amount due on them fully received.
On 1st April 2020, the company issued another 1,40,000 shares at a premium of ₹ 2 per share to be received with allotment. It received applications for 1,30,000 shares which were duly allotted.
All amounts due on the allotted shares was received except the final call of ₹ 2 per share on 5,000 shares. The company forfeited these shares and later reissued 4,000 of the forfeited shares @ ₹ 7 per share fully called up.
The Balance Sheet of the company was prepared as at 31st March 2021, as per Schedule III of the Companies Act, 2013.

(i) The issued capital of the company to be shown in Notes to Accounts as at
31st March 2021, under ‘Share Capital’ will be:
(a) ₹ 20,00,000
(b) ₹ 50,00,000
(c) ₹ 19,00,000
(d) ₹ 27,00,000

(ii) The subscribed shares of the company at the end of the year 2020-21 will be:
(a) 1,99,000
(b) 1,90,000
(c) 1,85,000
(d) 189,000
(iii) The amount of Share Capital to be shown in the Balance Sheet of the company as at 31st March, 2021, will be:
(a) ₹ 18,90,000
(b) ₹ 19,00,000
(c) ₹ 18,98,000
(d) 20,00,000
(iv) The net gain made by the company on re-issue of the 4000 shares will be transferred to:
(a) Reserve Capital Account
(b) Capital Reserve Account
(c) Securities Premium Reserve Account
(d) Statement of Profit and Loss

(v) After re-issue of shares, the account transferred to capital Reserve will be :
(a) ₹ 4,000
(b) ₹ 3,200
(c) ₹ 1,200
(d) ₹ 2,000

Answer – Question 2
(i) Answer- (a) ₹ 20,00,000
(ii) Answer- (d) 189,000

(iii) Answer- (c) ₹ 18,98,000

(iv)  Answer-(b) Capital Reserve Account
(v) Answer-(d) ₹ 2,000

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ISC ACCOUNTS SHARES MCQs with solved Answers Question 3

Question 3

Sagar Ltd. was formed on 1st April, 2019, with an authorized capital of ₹ 30,00,000 divided into equity shares of ₹ 10 each.
It invited applications for 60,000 shares to be issued at par, in the year of its formation, all of which were subscribed for and the amount due on them fully received.
On 1st October 2019, 20,000 shares to be issued at par, to the vendor for the purchase of machinery, fully paid.
On 1st April 2020, the company issued another 1,20,000 shares at par. 
All amounts due on the allotted shares were received except the final call of ₹ 3 per share on 1,000 shares. The company forfeited these shares and later reissued 800 of the forfeited shares @ ₹ 8 per share fully called up.
The Balance Sheet of the company was prepared as at 31st March 2021, as per Schedule III of the Companies Act, 2013.

(i) The issued capital of the company to be shown in Notes to Accounts as at
31st March 2021, under ‘Share Capital’ will be:
(a) ₹ 19,80,000
(b) ₹ 30,00,000
(c) ₹ 19,00,000
(d) ₹ 20,00,000

(ii) The subscribed shares of the company at the end of the year 2020-21 will be:
(a) 1,99,800
(b) 1,90,000
(c) 1,85,000
(d) 1,89,000
(iii) The amount of Share Capital to be shown in the Balance Sheet of the company as at 31st March, 2021, will be:
(a) ₹ 18,90,000
(b) ₹ 19,98,000
(c) ₹ 18,98,000
(d) 19,99,400
(iv) The net gain made by the company on re-issue of the 800 shares will be transferred to:
(a) Reserve Capital Account
(b) Capital Reserve Account
(c) Securities Premium Reserve Account
(d) Statement of Profit and Loss

(v) After re-issue of shares, the net gain transferred to capital Reserve will be :
(a) ₹ 4,000
(b) ₹ 5,600
(c) ₹ 1,600
(d) ₹ 7,000

Answer – Question 3
(i) Answer- (d) ₹ 20,00,000
(ii) Answer- (a) 1,99,800

(iii) Answer- (d) 19,99,400

(iv)  Answer-(b) Capital Reserve Account
(v) Answer-(a) ₹ 4,000

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ISC ACCOUNTS SHARES MCQs with solved Answers Question 4

Question 4

XYZ Ltd. forfeited 6,000 shares of ₹ 10 each, fully called up, on which application money of ₹ 3 had been paid. Out of these 3,000 shares were re-issued as fully paid up. Upon their reissue, the company transferred ₹ 6,000 to capital reserve. The rate at which these shares were reissued were:
(a) ₹ 10 per share
(b) ₹ 4 per share
(c) ₹ 9 per share
(d) ₹ 8 per share
Answer – Question 4
(c) ₹ 9 per share

ISC ACCOUNTS SHARES MCQs with solved Answers Question 5

Question 5

LMN Ltd. forfeited 5,000 shares of ₹ 10 each, fully called up, on which application money of ₹ 3 had been paid. Out of these 4,000 shares were re-issued as fully paid up. Upon their reissue, the company transferred ₹ 4,000 to capital reserve. The rate at which these shares were reissued were:
(a) ₹ 10 per share
(b) ₹ 4 per share
(c) ₹ 9 per share
(d) ₹ 8 per share
Answer – Question 5
(d) ₹ 8 per share

ISC ACCOUNTS SHARES MCQs with solved Answers Question 6

Question 6

Rohit Ltd. forfeited 800 equity shares of ₹ 10 each, fully called up, on which ₹ 5 per share (including premium of ₹ 1 per share) was received. It later reissued these shares at a discount.
The maximum discount per share, which the company could have given on their reissue
would be:
(a) ₹ 6 per share
(b) ₹ 5 per share
(c) ₹ 4 per share
(d) ₹ 3 per share

Answer – Question 6
(d) ₹ 4 per share

Note: The amount of discount allowed on the re-issue of forfeited shares can be equal to the forfeited amount on such shares.