12th Accountancy - Company Accounts Practice Question Paper | QB365

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12th Accountancy - Company Accounts Practice Question Paper

Published on: 04/01/2020

Company Accounts

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Questions:

Generic 3

2 x 3 = 6

Write a short note on
(i) Public issue
(ii) Private placement

Maruthu Ltd. forfeited 150 equity shares of Rs.10 each for non payment of final call of Rs.4 per share. Of these 100 shares were reissued @ Rs.9 per share. Pass journal entries for forfeiture and reissue.

Generic 5

2 x 5 = 10

Alpha Company issues 10,000 equity shares Rs.10 each payable fully on application.
Pass journal entry if the shares are issued
(i) at par
(ii) at a premium of Rs.2 per share.

Keerthiga Company issued shares of Rs.10 each at 10% premium, payable Rs.2 on application, Rs.3 on allotment (including premium), Rs.3 on first call and Rs.3 on second and final call. Journalise the transactions relating to forfeiture of shares for the following situations:
(i) Mohan who holds 50 shares failed to pay the second and final call and his shares were forfeited.
(ii) Mohan who holds 50 shares failed to pay the allotment money, first call and second and final call money and his shares were forfeited.
(iii) Mohan who holds 50 shares failed to pay the allotment money and first call and his shares were forfeited after the first call.

Multiple Choice Question

8 x 1 = 8

Other name for registered capital is ____________

(a)

Issued Capital

(b)

Nominal Capital

(c)

Reserve capital

(d)

None of the above

Penalty for delay in refunding application money ___________________

(a)

(b)

(c)

15%

(d)

20%

Nominal capital is the capital mentioned in the _____ of the company.

(a)

Articles of association

(b)

Memorandum of association

(c)

Prospectus

(d)

none of these

_____ needed by the company could be raised by inviting the general public to buy shares and invest in the business.

(a)

Money

(b)

Cash

(c)

Capital

(d)

None of these

Issue of equity shares to the public through prospectus by a public company is call ___________

(a)

Public issue

(b)

Private placement

(c)

Rights issue

(d)

Bonus issue

10.

The capital of a company is divided into small units of ________

(a)

current amount

(b)

fixed amount

(c)

capital amount

(d)

none of these

11.

The capital of companies is divided into small units called __________

(a)

(b)

debentures

(c)

dividend

(d)

none of these

12.

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

Generic 2

2 x 2 = 4

13.

What is prorata allotment?

14.

Why are the shares forfeited?

Odd one out

1 x 2 = 2

15.

(a) Called-up Capital
(b) Reserve Capital
(c) Paid up capital
(d) Depredation

Find out the wrong pair

1 x 2 = 2

16.

Which one of the Following is Not Correctly Matched?

(a)	Public issue	-	Initial public
(b)	Private placement	-	Section 42
(c)	Rights issue	-	Letter of offer
(d)	Bonus issue	-	Accumulated loss

Assertion and reason

1 x 2 = 2

17.

Assertion (A): Shares which are not preference shares are called Equity Shares.
Reason (R): In other words, equity shares are those which are entitled to dividend and repayment of capital after the preference share holders are paid.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

One or Two Words / Correct Statement

1 x 1 = 1

18.

(i) Rate of dividend is not fixed on equity shares and it depends upon the profits earned by the company
(ii) Issued capital means such capital as is authorised by the memorandum of association.
(iii) Subscribed capital refers to that part of issued capital which has been applied for and also alloted by the company.
(a) (i) is correct
(b) (i) and (iii) are correct
(c) (i) and (ii) are correct
(d) (i), (ii) and (iii) are correct

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Answers Key:

Generic 3

2 x 3 = 6

(i) Public issue
Issue of equity shares to the public through prospectus by a public company is called public issue. It includes initial public offer and further public offer.
(ii) Private placement
Private placement means any offer of equity shares or invitation to subscribe equity shares to a select group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in Section 42 of the Indian Companies Act, 2013.

In the books of Maruthu Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Equity share capital A/c (150 × 10)	Dr.	1,500
To Equity share final call A/c (150 × 4)			600
To Forfeited shares A/c (150 × 6)			900
(50 shares forfeited)
Bank A/c (100 × 9)	Dr.	900
Forfeited shares A/c (100 × 1)		100
To Equity share capital A/c (100 × 10)			1,000
(100 forfeited shares reissued @ Rs.9 per share)
Forfeited shares A/c	Dr.	500
To Capital reserve A/c			500
(Gain on reissue of forfeited shares transferred to capital reserve account)

Working note:
Forfeited amount for 150 shares = Rs.900
Forfeited amount for 100 shares = \(\frac{900}{150}\) x 100 = Rs.600
Gain or loss = Amount forfeited – loss on reissue
= 600 - 100
Net gain = Rs.500

Generic 5

2 x 5 = 10

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 10)	Dr.	1,00,000
To Equity share application A/c			1,00,000
(Application money received)
Equity share application A/c	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Application money transferred to share capitals)

(ii) Issued at a premium

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 12)	Dr.	1,20,000
To Equity share application A/c			1,20,000
(Application money received)
Equity share application A/c	Dr.	1,20,000
To Equity share capital A/c (10,000 x 10)			1,00,000
To Securities premium A/c (10,000 x 2)			20,000
(Application money transferred)

(i) When final call money is not paid

In the books of Keerthiga Company Journal entries
Particulars		Debit Rs.	Credit Rs.
Equity share capital A/c (50 × 10)	Dr.	500
To Equity share second and final call A/c (50 × 3)			150
To Forfeited shares A/c (50 × 7)			350
(50 shares forfeited)

Note: Since the premium amount is received by the company, premium should not be cancelled
(ii) When allotment, first call money and second and final call money is not paid

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 × 10)	Dr.	500
Share premium A/c (50 × 1)	Dr.	50
To Share allotment A/c (50 × 3)			150
To Share first call A/c (50 × 3)			150
To Share second and final call A/c (50 × 3)			150
To Shares forfeited A/c (50 × 2)			100
(50 shares forfeited)

(iii) When allotment and first call money is not paid

Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 × 7)	Dr.	350
Share premium A/c (50 × 1)	Dr.	50
To Share allotment A/c (50 × 3)			150
To Share first call A/c (50 × 3)			150
To Shares forfeited A/c (50 × 2)			100
(50 shares forfeited)

Multiple Choice Question

8 x 1 = 8

(b)
Nominal Capital

(b)
Memorandum of association

(a)
Public issue

10.

(b)
fixed amount

11.

(a)
shares

12.

Generic 2

2 x 2 = 4

13.

(i) In the case of over subscription, the shares are allotted to the public with certain number lesser than the number of shares they applied for, in certain basis.
(ii) It is called pro - rata allotment.

14.

When a shareholder defaults in making payment of allotment andlor call money, the shares may be forfeited. On forfeiture, the share allotment is cancelled and to that extent paid up share capital a reduced. The person ceases to be a shareholder of the company after the shares are forfeited.

Odd one out

1 x 2 = 2

15.

Reason: The process of allocation of the cost of a fixed asset over its useful life is known as depreciation. Other three are divisions of share capital.

Find out the wrong pair

1 x 2 = 2

16.

Bonus issue - Accumulated loss

Assertion and reason

1 x 2 = 2

17.

Both (A) and (R) are true and (R) is the correct explanation of (A)

One or Two Words / Correct Statement

1 x 1 = 1

18.