Select the appropriate answer from the alternative given below and rewrite the sentence.
1) The balance of Share Forfeiture A/c is transferred to ______________ account after re-issue of these shares.
a) Reserve Capital
b) Capital Reserve
c) Profit & Loss
d) Share capital
Ans:-b)Capital Reserves
2) Premium received on issue of shares is shown to______________
a) Liability side of Balance Sheet
b) Asset side of Balance Sheet
c) Profit & Loss Account debit side
d) Profit & Loss A/c credit side
Ans:-a)Liability side of Balance Sheet
3) Shareholders get_______________ on shares.
a) Interest
b) Commission
c) Rent
d) Dividends
Ans:-d) Dividends
4) The document inviting to subscribe to the shares of a company is______________
a) Prospectus
b) Memorandum of Association
c) Articles of Association
d) Share certificate
Ans:-a) Prospectus
5) As per SEBI guidelines minimum amount payable on share application should be_______________ of Nominal Value of shares.
a) 10%
b) 15%
c) 2%
d) 5%
Ans:-d) 5%
6) When shares are forfeited the Share Capital Account is …………………. .
a) Credited
b) Debited
c) Neither debited nor credited
d) None of the above
Ans:-b) Debited
7) The liability of shareholder in Joint Stock Company is___________
a) Joint and Sever
b) Limited
c) Unlimited
d) huge
Ans:-b) Limited
8) The Share Capital which a company is authorised to issue by its Memorandum of Association is__________.
a) Nominal capital/Authorised capital
b) Issued capital
c) Paid-up capital
d) Reserve capital
Ans:-a) Nominal capital/Authorised capital
9) The unpaid amount on allotment and calls may be transferred to_____________account.
a) calls in advance
b) calls
c) calls in arrears
d) allotment
Ans:-c) Calls in arrears
10) There must be provision in _____________ for forfeiture of shares.
a) Article of Association
b) Memorandum of Association
c) Prospectus
d) Balance Sheet
Ans:-a) Article of Association