ACCOUNTANCY FOR CLASS 12 CHAPTER 6 ACCOUNTING FOR SHARE CAPITAL, MCQS ALONG WITH THE ANSWERS

Free Accountancy Multiple Choice Questions for Class 12 CBSE along with the answers Chapter 6: Accounting for Share Capital. Accountancy MCQs for Class 12 chapter-wise with the answers are prepared based on the current exam pattern. Students will be able to tackle the MCQs with these answers to realise their spadework level.

1. Securities premium can not be applied ________.

(a) For paying dividends to members

(b) For issuing bonus shares to members

(c) For writing off preliminary expenses of the company

(d) For writing off discount on issue of debentures

Answer: (a) For paying dividends to members

2. What does reserve capital mean?

(a) A part of subscribed uncalled capital

(b) Reserve profit

(c) A part of capital reserve

(d) A part of capital redemption reserve

Answer: (a) A part of subscribed uncalled capital

3. An issue of shares that is not a public issue but offered to a selected group of persons is called _______.

(a) Public offer

(b) Private placement of shares

(c) Initial public offer

(d) None of the above

Answer: (d) None of the above

4. When shares are forfeited, the share capital account is debited with ______.

(a) Nominal value of shares

(b) Market value of shares

(c) Called-up value of shares

(d) Paid-up value of shares

Answer: (c) Called-up value of shares

5. Forfeiture of shares results in the reduction of______.

(a) Paid-up capital

(b) Authorised capital

(c) Fixed assets

(d) Reserve capital

Answer: (a) Paid-up capital

6. Discount allowed on the reissue of forfeited shares is debited to ______.

(a) Share capital A/c

(b) Share forfeiture A/c

(c) Profit and loss A/c

(d) General reserve A/c

Answer: (b) Share forfeiture A/c

7. Balance of forfeited shares account after the reissue of forfeited shares is transferred to _______.

(a) Profit and loss A/c

(b) Capital reserve account

(c) General reserve account

(d) None of the above

Answer: (b) Capital reserve account

8. Under the provisions of the Companies Act, the company can issue_______.

(a) Only equity shares

(b) Only preference shares

(c) Preference shares and equity shares

(d) None of the above

Answer: (c) Preference shares and equity shares

9. Shares can be forfeited ________.

(a) For failure to attend meetings

(b) For non-payment of call money

(c) For failure to repay the loan to the bank

(d) For which shares are pledged as a security

Answer: (b) For non-payment of call money

10. Premium on the issue of shares is shown on which side of the balance sheet?

(a) Assets

(b) Liabilities

(c) Both assets and liabilities

(d) None of the above

Answer: (b) Liabilities

We trust that the Accountancy MCQs offered for Class 12 with respect to Chapter 6: Accounting for Share Capital will help you. Assuming you have any questions with answers to Class 12 CBSE Accountancy, Accounting for Share Capital MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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