A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up

(a)

Only (i) is correct

(b)

Only (ii) is correct

(c)

Both (i) and (ii) are correct

(d)

Both (i) and (ii) are incorrect

That part of share capital which can be called up only on the winding up of a company is called:

(a)

Authorised capital

(b)

Called up capital

(c)

Capital reserve

(d)

Reserve capital

At the time of forfeiture, share capital account is debited with

(a)

Face value

(b)

Nominal value

(c)

Paid up amount

(d)

Called up amount

After the forfeited shares are reissued, the balance in the forfeited shares account should be transferred to

(a)

General reserve account

(b)

Capital reserve account

(c)

Securities premium account

(d)

Surplus account

The amount received over and above the par value is credited to

(a)

Securities premium account

(b)

Calls in advance account

(c)

Share capital account

(d)

Forfeited shares account

Which of the following statement is false?

(a)

Issued capital can never be more than the authorised capital

(b)

In case of under subscription, issued capital will be less than the subscribed capital

(c)

Reserve capital can be called at the time of winding up

(d)

Paid up capital is part of called up capital

When shares are issued for purchase of assets, the amount should be credited to

(a)

Vendor’s A/c

(b)

Sundry assets A/c

(c)

Share capital A/c

(d)

Bank A/c

Match the pair and identify the correct option

(1) Under subscription	(i) Amount prepaid for calls
(2) Over subscription	(ii) Subscription above the offered shares
(3) Calls in arrear	(iii) Subscription below the offered shares
(4) Calls in advance	(iv) Amount unpaid on calls

(a)

(1)	(2)	(3)	(4)
(i)	(ii)	(iv)	(iv)

(b)

(1)	(2)	(3)	(4)
(iv)	(iii)	(ii)	(i)

(c)

(1)	(2)	(3)	(4)
(iii)	(ii)	(iv)	(i)

(d)

(1)	(2)	(3)	(4)
(iii)	(iv)	(i)	(ii)

If a share of Rs.10 on which Rs.8 has been paid up is forfeited. Minimum reissue price is

(a)

Rs.10 per share

(b)

Rs.8 per share

(c)

Rs.5 per share

(d)

Rs.2 per share

Supreme Ltd. forfeited 100 shares of Rs.10 each for non-payment of final call of Rs.2 per share. All these shares were re-issued at Rs.9 per share. What amount will be transferred to capital reserve account?

(a)

Rs.700

(b)

Rs.800

(c)

Rs.900

(d)

Rs.1,000