S.Y B.COM
SEMESTER - 3
MID SEMESTER EXAMINATION
HIGHER FINANCIAL ACCOUNTING (HFA)
MCQS - 2019
(1) Compute the amount to be charged to Pre incorporation Period from the following particulars:-
Salaries Rs. 80,000.
Time Ratio 2:8.
Sales Ratio 1:3.
(A) Rs. 20,000
(B) Rs. 60,000
(C) Rs. 16,000
(D) Rs. 64,000
(2) In buy back of shares, Debt Equity Ratio should be _______.
(A) 1 : 2
(B) 2 : 1
(C) 1 : 1
(D) None of these
(3) Sam Limited was incorporated on 1st October 2018, to take over the running business of Smit & Co., with effect from 1st April 2018. Company prepares the Profit and Loss statement for the year ended 31st March 2019. Purchase consideration Rs 5,00,000 was paid on 30th November 2018 and Interest on Purchase consideration is payable at 9% per annum.
Calculate Interest on purchase consideration and it's apportionment in Pre Incorporation and Post Incorporation Period.
(A) Rs 30,000, Pre incorporation - Rs 22,500, Post Incorporation - Rs.7,500
(B) Rs 45,000, Pre incorporation - Rs.30,000, Post Incorporation - Rs.15,000
(C) Rs.45,000, incorporation- Rs.22,000, Post Incorporation- Rs 22,500
(D) None of these
(4) Which one of the following item is not Statutory Record.
(A) Minutes of meetings
(B) Register of probates
(C) Article of Association
(D) None of these.
(5) Based on the following information, compute the Sales Ratio. Total sales of F Ltd. as on 31.03.2019 is Rs.32,00,000. It is incorporated on 01.10 2018. Up to 01.10.2018 sales is Rs 8,00,000.
(A) 3:1
(B) 1:3
(C) 4:1
(D) 1:4
(6)The rate of commission paid or agreed to be paid to underwriters shall not excced, in case of shares, _______ % of the price at which the shares are issued or a rate authorized by the Articles, whichever is less.
(A) 5 %
(B) 2.5 %
(C) 5.2 %
(D) None of these.
(7) Following are the balances appearing in books of Rose Limited as at 31.03 2019.
Particulars | Amount (RS) |
Equity share capital (RS 10 each fully paid) | 12,00,000 |
10% Preference share (RS 10 each fully paid) | 2,00,000 |
Profit & Loss | 3,00,000 |
Securities Premium | 50,000 |
Investment | 80,000 |
Bank | 4,00,000 |
The board of directors decided to redeem the 10% preference share at a premium of 20% on 31st march 2019 company issued 8000 equity shares at Rs. 10 each at par for redemption of preference shares. Investments were sold at Rs 70,000. Premium on redemption is required to be set off against the securities premium A/c. Calculate Profit and Loss Balance after redemption.
(A) Rs. 50,000
(B) Rs. 1,00,000
(C) Rs. 1,70,000
(D) None of these.
(8) If 100 shares of Rs.10 each are forfeited for non-payment of final call of Rs.3 per share and only 50 shares are reissued for Rs.250, amount to be transferred to Capital Reserve is _______.
(A) Rs. 100
(B) Rs. 300
(C) Rs. 400
(D) None of these.
(9) Profit earned from the date of acquisition of the business to the date of incorporation should be transferred to_______.
(A) Goodwill A/C
(B) Capital Reserve A/C
(C) Profit & Loss A/C
(D) None of these
(10) A company issued 20,000 shares of which 75% was underwritten by an underwriter. Applications for 12,000 shares were received out of which 9,600 shares were marked by the underwriter. Determine the net liability of the underwriter.
(A) 5,400
(B) 15,000
(C) 10,400
(D) None of these.
(11) The preference shares can be redeemed only when they are fully paid up _______.
(A) out of the profits of the company which would otherwise be available for dividend
(B) out of the proceeds of a fresh issue of shares made for the purposes of such redemption.
(C) Both A and B
(D) None of these.
(12) Z Limited had allotted 10000 shares to the applicants of 14000 shares on pro- rata basis. The amount payable on application is Rs.2. X applied for 420 shares. State the number of shares allotted and the amount carried forward for adjustment against allotment money due from X?
(A) 60 shares, Rs.120
(B) 300 shares, Rs.240
(C) 340 shares, Rs.160
(D) None of these.
(13) What is/are source/sources for redemption of preference shares?
(A) Proceeds on fresh issue of shares
(B) Out of profit of the company
(C) Both (A) and (B)
(D) None of these.
(14) A company may issue preference shares for a period exceeding _______ years but not exceeding _______ years for infrastructure projects (Specified in Schedule VI) as per Companies Act, 2013.
(A) 20, 40
(B) 20, 35
(C) 20, 30
(D) None of these.
(15) A share having a face value of Rs.100, issued at par, called up Rs. 100 was forfeited on non payment of Rs.40. On re-issue, what will be minimum reissue price of that share?
(A) Rs. 100
(B) Rs. 40
(C) Rs. 60
(D) None of these
(16) What is the full form of ASBA?
(A) Application Supported by Blocked Account
(B) Application Supported by Blocked Amount
(C) Application Supported by Backed Amount
(D) None of these.
(17) ABC Limited issued 5000, 10% preference shares of Rs. 100 each at par, which is redeemable at a premium of 10%. For the purpose of redemption, the company issued 3000 equity shares of Rs.100 each, at a premium of 20% per share. At the time of redemption of preference shares, the amount to he transferred by the company to Capital Redemption Reserve Account is _______.
(A) Rs. 2,00,000
(B) Rs. 5,00,000
(C) Rs. 2,20,000
(D) Rs.5,50,000
(18) Bonus to existing shareholders is paid to them _______.
(A) In cash
(B) In form of debenture
(C) In form of shares
(D) None of these
(19) A Limited decides to redeem 1,000 12% preference shares of Rs. 100 each fully paid. at a premium of 10% It has General Reserve Rs.80,000, Profit and Loss Rs 40,000 and Securities Premium Rs. 2,000.
The company decides to redeem the preference shares out of fresh issue of 10,000 equity shares of Rs 10 each at par. Calculate the amount to be transferred to Capital Redemption Reserve Account.
(A) Rs. 40,000
(B) Rs. Nil
(C) Rs. 1,00,000
(D) None of these
(20) If the company does not receive the minimum subscription of the issue, the entire subseription shall he refunded to the applicants within _______ days from the date of closure of issue.
(A) 15 Days
(B) 7 Days
(C) 10 Days
(D) None of these
(21) M Limited was incorporated on 1st August 2018. to take over the running business of S & Co. with effect from 1st April 2018. The Profit and Loss Statement was prepared for the year ended 31st March 2019, Total Office Rent for the year is Rs.60,000. Office rent was paid @ Rs.4,000 per month upto 30th September and thereafter it was paid Rs.6,000 per month. Calculate Office rent to be allocated to Pre incorporation Period and Post incorperation period.
(A) Rs. 24,000, Rs. 36,000
(B) Rs. 15,000 Rs. 45,000
(C) Rs. 16,000, Rs.44,000
(D) None of these
(22) In how much time period a company has to physically destroy original shares purchased through the process of Buy Back?
(A) Within 7 days
(B) Within 15 days
(C) Within 30 days
(D) None of these
(23) Based on the following information, find out the amount payable to Preference Shareholders at the time of redemption of Preference Shares.
Rs. | Rs. | |
2500 10% Preference shares of RS. 100 each | 2,50,000 | |
Less: Final call of RS. 25 per share unpaid | 12,500 | 2,37,000 |
The Board of Directors decided to redeem only the fully paid up 10 % Preference shares at a premum of 10%.
(A) Rs.2,20,000
(B) Rs.2,00,000
(C) Rs.2,50,000
(D) None of these
(24) Prospectus is an _______ in case of a public issue which has all relevant details including price and number of shares or convertible securities being offered by the company.
(A) Offer Document
(B) Agenda Book
(C) Register of Share
(D) None of these
(25) Match the following:-
Expenses | Basis of allocation between pre & post incorporation period |
(1) Salaries | (i) Sales Ratio |
(2) Discount | (ii) Post incorporation on sales period |
(3) Debenture interest | (iii) Time ratio |
(A) 1 - ii, 2 - iii, 3 - i
(B) 1 - iii, 2 - i, 3 - ii
(C) 1 - i, 2 - ii, 3 - iii
(D) None of these.
(26) If the number of shares offered for subscription is more than the number of shares subscribed by the public, it shows _______.
(A) Over subscription
(B) Under subscription
(C) Full subscription
(D) None of these
(27) _______ means equity shares issued by the company to employees or directors either at a discount or for consideration other than cash for providing the know-how or creation of valuable intellectual property rights.
(A) Employees Stock Option
(B) Sweat Equity Shares
(C) Right Shares
(D) None of these.
(28) Shiva L imited was incorporated on 1st August 2018, to take over the running business of Shakti & Co.with effect from 1st April 2018. The company received certificate of commencement of business on 1st September 2018. Company prepares the profit and loss statement for the year ended 31st March 2019.
Sales for the months of August, September, October was triple as compared to other months during financial year starting from 01.04.2018 to 31.03.2019.
Calculate Sale ratio for allocating Pre and Post Incorporation Balances.
(A) 5:15
(B) 8:14
(C) 4:14
(D) None of these
(29) State whether the following statements are True (T) or False (F)
(1) When equity shares are issued to the employees of the company, it is called as right shares.
(2) The time for accepting Offer, in 'Ietter of Offer', may be minimum 15 days and maximum 30days.
(3) The issue of Bonus Shares inerease the total number of shares issued but does not increase the net worth of the company.
(4) The Company gets huge funds on account of Bonus issue.
(A) T, T, F, F,
(B) F, T, T, F
(C) F, F, T, T,
(D) None of these
(30) Preliminary expenses is Rs. 60,000. Time ratio 2:5. Sales ratio 3:1. Compute the amount to be charged to pre incorporation Period.
(A) Rs. 20,000
(B) Rs. 7,500
(C) Rs. 30,000
(D) Rs. Nil
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