Accounting For Share Capital(12th Grade > Accountancy ) Questions and Answers
Explanation:-
Answer: Option A. ->
Equity Shareholders
:
A
Equity shareholders bears the loss of the company.
Explanation:-
Answer: Option A. ->
Yes, it is possible.
:
A
Yes, it is possible that some shareholders do not pay installment amount due on allotment or calls.
Explanation:-
Answer: Option D. ->
none of these
:
D
Securities premium can be utilized for all of the mentioned options i.e.
- writing off any preliminary expenses of the company
- writing off expenses of issue of shares and debentures
- providing for the premium that is payable on the redemption of debentures
Explanation:-
Answer: Option A. ->
Cannot be cancelled
:
A
Securities premium once received cannot be cancelled.
Explanation:-
Answer: Option D. ->
receiving application money
:
D
Shares are alloted after receiving application money
Explanation:-
Answer: Option A. ->
Nominal capital
:
A
Authorised capital is also called nominal or registered capital.
Explanation:-
Answer: Option B. ->
Called up capital
:
B
Called up capital is that part of the subscribed capital which has been called up on the shares.
Explanation:-
Answer: Option A. ->
Dividend
:
A
Dividends are profits of the company that are agreed to be distributed to the shareholders of the company.
Explanation:-
Answer: Option C. ->
Un-called capital
:
C
That portion of the subscribed capital which has not yet been called up is known as un-called capital.
Explanation:-
Answer: Option D. ->
Authorised capital
:
D
The authorised capital can be increased or decreased as per the procedure laid down in the Companies Act.