Allotment of Shares

Q.

The next step in the issue of shares after receiving share application money is ___

1. None of the above

2. Allottment of shares

3. Receiving Application money

4. Issue of Prospectus

Q.

DG Ltd Purchased assets of Rs 2, 50, 000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration. Which of the following is true ?

1. None of the above

2. Share capital account shall be debited with Rs 250000

3. Share capital account shall be credited with Rs 250000

4. Share capital account shall be credited with Rs 5000

Q.

Companies decide to split their entire capital into units each of which carries ___________ value

1. Both A and B

2. uniform

3. different

4. None of the above

Q.

DG Ltd Purchased assets of Rs 2, 50, 000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration at a discount of Rs 30. Calculate the no of shares issued.

1. 31, 250

2. 21, 250

3. 12, 500

4. 51, 250

Q.

The first step in the issue of shares is __________.

1. None of the above

2. Allotment of Shares

3. Issue of Prospectus

4. Receipt of Applications

Q.

Which letters are sent to the shareholders to whom shares have been allotted ?

1. None of the above

2. Letters of allottment

3. Letters of appreciation

4. Letters of regret

Q.

DG Ltd Purchased assets of Rs 2, 50, 000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration at a premium of Rs 30. Calculate the no of shares issued.

1. 4, 125 shares

2. 3, 125 shares

3. 2, 125 shares

4. 5, 125 shares

Q.

Shares are alloted after _________

1. None of the above

2. Not sure

3. No

4. Yes

Q.

In case a company does not have sufficient funds for the purchase of fixed assets or for payment to creditors it may offer and allot its shares to vendor/ creditors in lieu of cash. In such a case, which account is debited ?

1. Goodwill account

2. Share application account

3. Share capital account

4. Vendor/ Creditor`s account

Q. The next step in the issue of shares after receiving share application money is allotment of shares.

1. False
2. True