CA Foundation · Accounting & Mercantile Law

Company Accounts: Issue of Shares, Forfeiture and Debentures

10 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. A company forfeited 1,000 shares of ₹10 each, ₹8 called up, on which application and allotment of ₹5 was paid. What amount is credited to Share Forfeiture Account?
  2. 500 forfeited shares of ₹10 each (₹7 paid) were reissued at ₹8 per share as fully paid up. What amount is transferred to Capital Reserve Account?
  3. Under Table F of Companies Act 2013, what is the maximum rate of interest chargeable on calls-in-arrears if articles are silent?
  4. A company issued 10,000 12% Debentures of ₹100 each at a discount of 5%, redeemable at a premium of 5%. What is the total Loss on Issue of Debentures?
  5. Under Section 52(2) of Companies Act 2013, Securities Premium Account cannot be utilized for which of the following purposes?
  6. Applications are received for 1,50,000 shares against 1,00,000 shares offered. Pro-rata allotment is made. If X applied for 1,500 shares, how many shares are allotted to him?
  7. Where does Calls-in-Advance appear in the balance sheet of a company prepared under Schedule III of the Companies Act 2013?
  8. Debenture Redemption Reserve (DRR) is created out of which of the following company resources?
  9. When shares are forfeited, which account is debited with the nominal called-up value of the shares?
  10. What is the maximum discount permissible on the reissue of forfeited shares?

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