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Micheal Vaz solutions for 12th Board Exam Book Keeping and Accountancy chapter 10 - Company Accounts Part - 1 (Accounting for Shares)

Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy

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Micheal Vaz Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy

Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy - Shaalaa.com

Chapter 10: Company Accounts Part - 1 (Accounting for Shares)

Exercise

Chapter 10: Company Accounts Part - 1 (Accounting for Shares) Exercise Exercise solutions [Page 350]

Exercise | Q 1 | Page 350

Answer in one Sentence only :
What is authorised capital?

Exercise | Q 2 | Page 350

Answer in one Sentence only :
State the meaning of issued capital.

Exercise | Q 3 | Page 350

Answer in one Sentence only :
What do you mean by reserve capital?

Exercise | Q 4 | Page 350

Answer in one Sentence only :
Define share.

Exercise | Q 5 | Page 350

Answer in one Sentence only :
Write the meaning of equity share capital.

Exercise | Q 6 | Page 350

Answer in one Sentence only :
What is meant by convertible preference share?

Exercise | Q 7 | Page 350

Answer in one Sentence only :
Which preference shares are called cumulative preference shares?

Exercise | Q 8 | Page 350

Answer in one Sentence only :
What is allotment of shares?

Exercise | Q 9 | Page 350

Answer in one Sentence only :
What is meant by share premium?

Exercise | Q 10 | Page 350

Answer in one Sentence only :
What is meant by discount on issue of shares?

Exercise | Q 11 | Page 350

Answer in one Sentence only :
Give the full form of SEBI.

Exercise | Q 12 | Page 350

Answer in one Sentence only :
What do you understand by Pro-rata allotment of shares?

Exercise | Q 13 | Page 350

Answer in one Sentence only :
Define call-in-advance.

Exercise | Q 14 | Page 350

Answer in one Sentence only :
Define securities premium.

Chapter 10: Company Accounts Part - 1 (Accounting for Shares) Exercise Exercise solutions [Pages 250 - 350]

Exercise | Q 1 | Page 350

Give one word / Term / phrase for  the following statement :
Capital stated in the capital clause of Memorandum of Association.

Exercise | Q 2 | Page 350

Give one word / Term / phrase for  the following statement :
The portion of subscribed capital which has not yet been called up.

Exercise | Q 3 | Page 250

Give one word / Term / phrase for  the following statement :
The capital which is not disclosed in the balance sheet.

Exercise | Q 4 | Page 350

Give one word / Term / phrase for  the following statement :
Preference share on which arrears of dividend accumulate.

Exercise | Q 5 | Page 350

Give one word / Term / phrase for  the following statement :
A preference share having right of conversion into equity.

Exercise | Q 6 | Page 350

Give one word / Term / phrase for  the following statement :
Issue of share above face value.

Exercise | Q 7 | Page 350

Give one word / Term / phrase for  the following statement :
The account to which excess amount on share forfeited a/c is transferred.

Exercise | Q 8 | Page 350

Give one word / Term / phrase for  the following statement :
The maximum amount beyond which a company is not allowed to raise funds.

Exercise | Q 9 | Page 350

Give one word / Term / phrase for  the following statement :
Deduction made from share capital to find out paid up capital.

Exercise | Q 10 | Page 350

Give one word / Term / phrase for  the following statement :
Amount called on shares by the company but not received.

Exercise | Q 11 | Page 350

Give one word / Term / phrase for  the following statement :
The capital on which dividend is paid.

Exercise | Q 12 | Page 350

Give one word / Term / phrase for  the following statement :
Shares having voting right.

Exercise | Q 13 | Page 350

Give one word / Term / phrase for  the following statement :
Shares having first right on surplus assets at the time of liquidation.

Chapter 10: Company Accounts Part - 1 (Accounting for Shares) Exercise Exercise solutions [Pages 350 - 351]

Exercise | Q 1 | Page 350

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Nominal value of shares allotted to the public is called _____________ capital.

  •  authorised

  • reserve

  • paid up

  • subscribed

Exercise | Q 2 | Page 350

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Paid up, value of all shares allotted is called ______________ capital.

  • uncalled

  • issued

  • subscribed

  • nominal

Exercise | Q 3 | Page 350

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per section 69 (3) of the Companies Act, 1956, the minimum amount payable on share application should be______________ percent.

  • 10

  • 5

  • 20

  • 15

Exercise | Q 4 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per SEBI guidelines, the minimum amount payable on share application should be ____________ of nominal value of share.

  • 10

  • 20

  • 25

  • 5

Exercise | Q 5 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per Table A, the amount on call on a share must not exceed ____________ percent.

  • 5

  • 10

  • 20

  • 25

Exercise | Q 6 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is _____________.

  • 5% p.a.

  • 6% p.a.

  • 8% p.a.

  • none of these

Exercise | Q 7 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If the articles are silent regarding interest on Calls-in-advance, the minimum rate of interest to be charged is _____________ p.a.

  • 5%

  • 6%

  • 8%

  • none of these

Exercise | Q 8 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The document inviting offers from public to subscribe its share is called _____________.

  • prospectus

  • share certificate

  • both ‘a’ and ‘b’

  • none of these

Exercise | Q 9 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If shares are issued at its face value, it is called as issue at __________________.

  • premium

  • discount

  • par

  • none of these

Exercise | Q 10 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
_____________ is deducted from the share capital to know paid up value of shares.

  • Calls-in-advance

  • Calls-in-arrears

  • Forfeited shares

  • Discount on issue

Exercise | Q 11 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Interest on Calls-in-arrears is ______________for the company.

  • income

  • expenditure

  • gain

  • loss

Exercise | Q 12 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
When shares are forfeited, share capital account is ______________.

  • debited

  • credited

  • adjusted

  • none of these

Exercise | Q 13 | Page 351

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The excess price received over the par value of shares, should be ___________ to securities premium a/c.

  • debited

  • credited

  • adjusted

  • none of these

Chapter 10: Company Accounts Part - 1 (Accounting for Shares) Exercise Exercise solutions [Page 351]

Exercise | Q 1 | Page 351

State, whether the following statements is True or False.
The liability of a shareholder of public limited company is limited.

  • True

  • False

Exercise | Q 2 | Page 351

State, whether the following statements is True or False.
Equity shareholder enjoys preferential rights.

  • True

  • False

Exercise | Q 3 | Page 351

State, whether the following statements is True or False.
Equity share is a guarantee of fixed rate of dividend.

  • True

  • False

Exercise | Q 4 | Page 351

State, whether the following statements is True or False.
In private placement shares are issued to public through prospectus.

  • True

  • False

Exercise | Q 5 | Page 351

State, whether the following statements is True or False.
Private placement method saves time and cost.

  • True

  • False

Exercise | Q 6 | Page 351

State, whether the following statements is True or False.
In public issue whole amount of share capital is called at once.

  • True

  • False

Exercise | Q 7 | Page 351

State, whether the following statements is True or False.
Shares are always issued at par.

  • True

  • False

Exercise | Q 8 | Page 351

State, whether the following statements is True or False.
A public company can issue shares at only rate of discount.

  • True

  • False

Exercise | Q 9 | Page 351

State, whether the following statements is True or False.
A public company forfeits share on non-payment of final call only.

  • True

  • False

Exercise | Q 10 | Page 351

State, whether the following statements is True or False.
Forfeited shares are reissued at par only.

  • True

  • False

Exercise | Q 11 | Page 351

State, whether the following statements is True or False.
Share forfeited balance is transferred to Capital Reserve Account.

  • True

  • False

Exercise | Q 12 | Page 351

State, whether the following statements is True or False.
Shares are issued for cash only.

  • True

  • False

Chapter 10: Company Accounts Part - 1 (Accounting for Shares) Exercise Exercise solutions [Pages 352 - 354]

Exercise | Q 1 | Page 352

(Calculation of different types of Capital):
From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital :
Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares

Exercise | Q 2 | Page 352

(Full Subscription)
The HMT Ltd. issued 15,000 Equity shares of Rs 10 each, payable as under-

On Application Rs 3 On Allotment Rs 2
On First Call Rs 3 On Final Call Rs 2

All the shares were fully subscribed by the public. All the money due on installments were received.
Pass journal entries to record the above transactions in the books of the company.

Exercise | Q 3 | Page 352

(Under Subscription)
Usha Co. Ltd. issued Rs 12,000 Equity shares of Rs 100 each payable as under-

 Rs 30  on application Rs 20  on allotment
 Rs 35  on first call Rs 15  on second call

Public applied for Rs 10,000 shares and all the applicants were accepted by the company. Allotment of the shares were made. All the money on allotment, first call and second call were received.
Show the journal of the Company.

Exercise | Q 4 | Page 352

(Over Subscription and retain for allotment):
Geeta Ltd. invited applications for Rs 50,000 Equity shares of 10 each payable as under-

Rs 3  On Application Rs 2 On Allotment
Rs 3 On First Call Rs 2 On Final Call

Public applied for Rs 60,000 shares. All the applications were accepted by the company. Money on excess application was used for allotment purpose. Assuming that all the allotment, first call and final call duly received.
Pass journal entries in the books of the company.
Rise in the books of the company.

Exercise | Q 5 | Page 353

(Over subscription- Some over application refunded and rest used for allotment)
ONGC Ltd. invited applications for 25,000 shares of Rs 100 each payable as under-

On Application Rs 20  On Allotment Rs 40
On First Call Rs 25, On Final Call Rs 15

Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

Exercise | Q 6 | Page 353

(Call in arrears and Balance Sheet)
The Alfo Ltd. made an issue of 10,000 shares of Rs 20 each payable as follows-

Application Rs 5 Allotment Rs 10
First Call Rs 2 Final Call Rs 3

The company received applications for 15,000 shares of which applications for 5,000 shares were rejected and money refunded. The directors made all the calls. One share holders, holding 100 shares failed to pay first and final call. The expenses of issue amounted to Rs 5,000 . Pass journal entries and show the Balance Sheet.
Note: Expenses on issue should be shown as asset. Every year certain amount of expenses should be charged to P&L A/c.

Exercise | Q 7 | Page 353

(Issue at discount and Pro-rate allotment)
Global IT Ltd. issued 1,00,000 shares of 10 each at a discount of 10% payable as follows-

On Application Rs 3 On Allotment Rs 3 (Discount)
On First Call Rs 2 On Second Call Rs 1

Public applied for 1,20,000 shares and the directors made pro-rata allotment to the applicants.
Show the journal of the company assuming that all money received on allotment and calls.

Exercise | Q 8 | Page 353

(Issue at premium and calls in arrears)
Hindusthan Petroleum Ltd., invited application for 40,000 Equity shares of Rs 100 each payable as under including 20% premium:

On Application Rs 30 On Allotment Rs 40 (including premium)
On First Call Rs 20 On Final Call Rs 30
 

All the shares were applied for and also allotted. One share holder who was allotted 500 shares failed to pay first and final call.
Record the above transactions in the journal of the company.

Exercise | Q 9 | Page 354

(Forfeiture of shares issued at par)
Vijay Ltd. issued Rs 40,000 Equity shares of Rs 10 each payable as follows.

On Application : Rs 2 On Allotment : Rs 3
On First Call : Rs 3 On Second Call : Rs.2

The company received applications for Rs 50,000 equity shares. Allotment for shares was made on pro rata basis. Share allotment and calls were made and as also received except Raja holding Rs 1,000 shares failed to pay both the calls. His shares were forfeited after second call.
Record the above transactions in books of Vijay Ltd.
Note: Excess money received on share application 10,000 × Rs 2 = 20,000 will be diverted to share allotment A/c.

Exercise | Q 10 | Page 354

(Forfeiture of shares issued at premium)
The Century Ltd. issued 8,000 shares of Rs 100 at a premium of 10% payable as under-

On Application Rs 25  On Allotment Rs 40 (including premium)
On First Call Rs 20 On Second Call Rs 25

Company called up allotment and both the calls which were duly received except Ramesh to whom 500 shares were allotted failed to pay allotment and calls. Prepare Journal of Century Ltd.

Chapter 10: Company Accounts Part - 1 (Accounting for Shares)

Exercise

Micheal Vaz Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy

Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy - Shaalaa.com

Micheal Vaz solutions for 12th Board Exam Book Keeping and Accountancy chapter 10 - Company Accounts Part - 1 (Accounting for Shares)

Micheal Vaz solutions for 12th Board Exam Accounts chapter 10 (Company Accounts Part - 1 (Accounting for Shares)) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Maharashtra State Board Micheal Vaz Class 12 Accounts - Book Keeping and Accountancy solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. Micheal Vaz textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in 12th Board Exam Book Keeping and Accountancy chapter 10 Company Accounts Part - 1 (Accounting for Shares) are Meaning of Share and Share Capital, Nature and Types of Share and Share Capital, Accounting for Share Capital, Share Capital - Issue and Allotment of Equity Shares, Private Placement of Shares, Public Subscription of Shares, Over Subscription of Shares, Under Subscription of Shares, Issue at Par and Premium and at Discount, Calls in Advance and Arrears, Issue of Shares for Consideration Other than Cash, Accounting Treatment of Forfeiture and Re-issue of Share, Disclosure of Share Capital in Company’S Balance Sheet (Horizontal Form), Meaning and Concept of Debentures, Issue of Debentures at Par at Premium and at Discount, Issue of Debentures for Consideration Other than Cash, Interest on Debentures.

Using Micheal Vaz 12th Board Exam solutions Company Accounts Part - 1 (Accounting for Shares) exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in Micheal Vaz Solutions are important questions that can be asked in the final exam. Maximum students of Maharashtra State Board 12th Board Exam prefer Micheal Vaz Textbook Solutions to score more in exam.

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