1 Basic Accounting Question Bank 1. The Double Entry System of accounting originated in 2. Accounting principles are generally based on 3. The system of recording transactions based on dual concept is called 4. Book – keeping is mainly related to 5. Financial statements is a part of 6. The accounting equation is based on 7. Making the provision for doubtful debts in anticipation of actual bad debts is on the basis of 8. The assumption that a business enterprise will not be sold or liquidated in the near future is know as the 9. Disclosing essential information in accounting observes the principle of
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1
Basic Accounting
Question Bank1. The Double Entry System of
accounting originated in2. Accounting principles are generally
based on3. The system of recording transactions
based on dual concept is called4. Book – keeping is mainly related to5. Financial statements is a part of6. The accounting equation is based on7. Making the provision for doubtful
debts in anticipation of actual baddebts is on the basis of
8. The assumption that a businessenterprise will not be sold orliquidated in the near future is knowas the
9. Disclosing essential information inaccounting observes the principle of
2
Answer Sheet1. Itally2. Practicability3. Double entry system4. Recoding of financial data5. Accounting6. Dual aspect concept7. Convention of conservatism8. Going Concern Concept9. Full disclosure
3
10. According to which of thefollowing principles all costs whichare applicable to revenue of theperiod should be charged againstthat revenue.
11. According does not record non –financial transactions because of
12. The determination of expenses for anaccounting period is based on theprinciple of
13. Dual aspect concept results in theaccounting equation
14. On sale of old furniture owner’sequity would
15. The immediate recognition of loss issupported by the underlying principleof
16. Revenue is generally recognized at thepoint of sale. Which principle isapplied
17. Accounting is the process ofmatching of
4
Answer Sheet10. Matching11. Money Measurement concept12. Matching13. Capital + Liabilities = Assets14. May or may not change15. Conservatism16. Revenue recognition17. Revenues and costs
5
18. Payment of a liability results in19. Economic life of an enterprise is split
into the periodic interval as per20. Capital brought in by the proprietor
will result21. Which AS has been withdrawn by
ICAI.22. Fundamental Accounting Assum-
ptions are specified in23. Provision should be made for
Discount on Debtors due to ----principles.
24. Cost Concepts deals with thevaluation of.
25. -----principle requires that the sameaccounting method should be usedfrom one accounting period to thenext.
26. ---- principle is an exception of Fulldisclosure method.
27. AS in India are issued by-28. The concept of conservatism when
applied to the balance sheet resultsin-
6
Answer Sheet18. Decrease in total Assets19. Periodicity20. Increase in asset and increase in
liability.21. AS 822. AS 123. Matching & Prudence Concept24. Fixed Assets25. Consistency Concept26. Materiality27. ICAI28. Understatement of Assets
7
Basic of Accounting 2
Question Bank1. Current Assets means,2. Current Liabilities means3. Financial statements are prepared
primarily for the benefit of4. Which one is the language of
business?5. What is the main function of
accounting?6. ________ is a base for accounting.7. Financial Statements are part of
______.8. Accounting is an art & a science.
(True / False)9. Where book keeping ends,
accountancy starts. (True / False)10. Difference between asset & liability
is11. Net worth is the difference
between
8
Answer Sheet1. Assets which are converted into
cash or consumed within a periodof not more than 1 year.
2. Payables within 1 year.3. External parties to the business.4. Accountancy5. Communication through recording
of transactions6. Book Keeping7.- Accounting8. True9. True10. Capital11. Total Assets less external liabilities
14. What was basic need to formAccounting Standards?
15. What are major guidelines forselection of Accounting Policies?
16. Examples of Accounting policies,17. Examples of Accounting estimates,18. What are accounting conventions?
10
Answer Sheet12. Going Concern, Consistency &
Accrual Concept13. No.14. To set of accounting policies to be
followed by an entity.15. Prudence, Substance over form &
Materiality16. Choose the method for depreciation
& inventory valuation.17. Salvage value & useful life of an
asset.18. Conservatism, Full disclosure,
consistency & materiality.
11
Journal & Ledger
Question Bank1. Recording means2. Classification means3. Analysis & Interpretation means4. Who developed the double entry
system?5. Writing of transactions in the ledger
is called.6. Unexpired portion of any capital
expenditure is shown in thefinancial statements
7. Expired portion of any capitalexpenditure is shown in thefinancial statements
8. Purchase book records9. Drawing account is in the nature of10. Journal Proper records11. Transactions are recorded in books
________ order.
12
Answer Sheet1. Making entries in original books2 Making entries in ledger3. Ratio & trend analysis of Financial
statements4. Lucas Pacilio5. Posting6.- As an assets.7. As an expenses.8. Credit purchase of goods9. Personal account10. Opening entry11. Chronological
13
12. Bank overdraft can be classified as13. Penaly for illegal action is classified
as14. Classify Cash Book-15. What are the columns in three
columns cash book?16. Which column of cash book is not
balanced?17. Categorize the Trademark, Patent
& Copyright account.18. Retained earning is classified as19. Journal is a ________ book.20. Which one is the book of original
entry.21. Which book is written by Lucas
Pacilio?22. How many parts have journal?23. L.F. column in the journal is filled
at the time of,24. Accounting equation of Dual Aspect
1. Going Concern Concept- Record allthe transactions in such a way thatbusiness will not be shut down &will run for forever.
2. Money Measurement Concept-Only those transactions can be re-corded which can be measured interms of money.
3. Separate Entity Concept- Business& Businessman both have their dif-ferent identity.
4. Historical Cost Concept- All assets& liabilities should be recorded attheir original cost in the financialstatements.
5. Dual Aspect Concept- Every trans-action has two aspects, one is calleddebit & the other is credit.
16
6. Periodicity Concept- Finalization of fi-nancial statements after completion of aparticular period. i.e. monthly, quarterlyor yearly.
7. Prudence Concept- Make all the provi-sions for expected losses but don’t tryto expect any future profit or gains.
8. Realization Concept- If there is anydoubt to ultimate collection of any rev-enue or profit, don’t recognize them .Postpone them until or unless actuallyrealizes in cash.
9. Accrual Concept- Recognize all the ex-penses & income of a particular periodeven not incurred or earned actually incash (Accrued income & outstandingexp) Don’t recognize those income orexpenses which are not of a particularperiod even they realizes or paid actu-ally in cash ( Prepaid exp & unearnedincome)
17
10. Matching Concept- Recognize onlythose income or expenses at thetime of preparation of financialstatement which are of that periodfor which we are preparing our fi-nancial statements.
11. Materiality Concept- All the im-portant facts & figures should bedisclosed separately.
18
S.
A
ccou
ntin
g
Titl
esN
o.
Stan
dard
1A
S-1
Dis
clos
ure
of A
ccou
ntin
g Po
licie
s2
AS-
2In
vent
ory
Valu
atio
n3
AS-
3C
ash
Flow
Sta
tem
ent
4A
S-4
Con
tinge
ncie
s &
Eve
nts
occu
rrin
g af
ter
the
Bal
ance
She
et d
ate
5A
S-5
Net
Pro
fit
or l
oss
for
the
Peri
od,
Prio
r Pe
riod
item
s &
Cha
nges
in
Acc
ount
ing
Polic
ies
6A
S-6
Dep
reci
atio
n A
ccou
ntin
g7
AS-
7A
ccou
ntin
g fo
r C
onst
ruct
ion
Con
trac
ts8
AS-
8(D
elet
ed)A
ccou
ntin
g fo
r R
esea
rch
&D
evel
opm
ents
Lis
t of
Acc
ount
ing
Stan
dard
19
9A
S-9
Rev
enue
Rec
ogni
tion
10A
S-10
Acc
ount
ing
for
Fixe
d A
sset
11A
S-11
Acc
ount
ing
for
the
Effe
cts
of C
hang
es i
n Fo
reig
nEx
chan
ge R
ates
12A
S-12
Acc
ount
ing
for
Gov
ernm
ent
Gra
nts
13A
S-13
Acc
ount
ing
for
Inve
stm
ents
14A
S-14
Acc
ount
ing
for
Am
alga
mat
ion
15A
S-15
Acc
ount
ing
for
Ret
irem
ent
Ben
efits
in
the
fina
ncia
l st
atem
ents
of
empl
oyer
16A
S-16
Bor
row
ing
Cos
t17
AS-
17Se
gmen
t R
epor
ting
18A
S-18
Rel
ated
Par
ty D
iscl
osur
es19
AS-
19Le
ases
20
20A
S-20
Earn
ing
Per
Shar
es21
AS-
21C
onso
lidat
ed F
inan
cial
Sta
tem
ents
22A
S-22
Acc
ount
ing
for
Taxe
s on
Inc
ome
23A
S-23
Acc
ount
ing
for
Inve
stm
ents
in
Ass
ocia
tes
inC
onso
lidat
ed F
inan
cial
Sta
tem
ents
24A
S-24
Dis
cont
inui
ng O
pera
tions
25A
S-25
Inte
rim
Fin
anci
al R
epor
ting
26A
S-26
Inta
ngib
le A
sset
s27
AS-
27Fi
nanc
ial
Rep
ortin
g of
Int
eres
t in
Joi
nt V
entu
res
28A
S-28
Impa
irm
ent
of A
sset
s29
AS-
29Pr
ovis
ions
, C
ontin
gent
Lia
bilit
ies
& C
ontin
gent
Ass
ets
30A
S-30
Acc
ount
ing
for
Fina
ncia
l In
stru
men
ts
21
Capital & Revenue Exp
Question BankCategories the following in Capital,Revenue & Deferred RevenueExpenditure:-1. Wages paid for installation of Fixed
Assets2. Free Gift given to customers on the
launching of a new product.3. Temporary construction of huts
done for the construction of bridge.4. Expenditure incurred for the
purpose of obtaining a licence forthe running of Cinema.
5. Amount of repair incurred on thepurchase of second hand furniture.
6. Expenditure incurred by a publisherfor acquiring copyrights .
7. Amount incurred on increasing theseating capacity in a cinema.
22
Answer Sheet1. Capital Exp2. Deferred Revenue Exp3. Capital Exp4. Capital Exp5. Capital Exp6. Capital Exp7. Capital Exp
23
8. An entity spent on painting of thefactory premises.
9. An AC was installed in the officeof the Managing Director of acompany.
10. Traveling exp incurred on theunsuccessful dealing of Land.
11. Compensation paid to workers ontheir VRS.
12. Renewal fee for Patents.13. Successful Research &
Development exp are14. Unsuccessful Research &
Development exp are15. Expenditure incurred on
demolition of old building forconstruction of new one.
16. Freight & Taxes paid for purchaseof new machinery
17. Overhauling expenses for theengine of a motor car to get betterfuel efficiency.
24
Answer Sheet8. Revenue Exp9. Capital Exp10. Revenue Exp11. Deferred Revenue Exp12. Revenue Exp13. Capital Exp14. Revenue Exp15. Capital Exp16. Capital Exp17. Capital Exp
25
18. Share Premium received on issueof new share.
19. Loss by theft of cash by cashier .20. Loss on sale of a furniture.21. Uniform expenditure incurred for
workers & staff.22. Amount spent for removal of stock
from old site to new site.23. Money spent to reduce working
expenses.24. Heavy advertisement exp is
incurred to introduce a newproduct.
25. Amount spent as lawyer’s fee todefend a suit claiming that thefirm’s factory site belonged to theplaintiff’s land .
26. Legal Fee to acquire a land.
26
Answer Sheet18. Capital Receipt19. Revenue Loss20. Revenue Loss21. Revenue Exp22. Revenue Exp23. Capital Exp24. Deferred Revenue Exp25. Revenue Exp26. Capital Exp
27
Bank Reconciliation Statement
Question Bank1. Define BRS.2. BRS is prepared by.3. Debit balance in the pass book
means4. Credit Balance in the Cash Book
means (with ref. to pass book)5. Favorable Bank Pass book means6. Favorable Cash Book means7. Purchase & Sale of shares &
Debentures are the main work ofthe bank. True/False
8. A BRS is a part of FinancialStatement- True/ False
28
Answer Sheet1. It is a statement to reconcile the
differences between Cash Book &Pass Book
2. Customer / Business3. Bank Overdraft4. Bank Overdraft5. Credit Balance in Pass Book6. Debit balance in Cash Book7. False8. False
29
9. What will be the treatment of thefollowings-a. Interest & Exp charged by bankb. Cheque issued not presented for
paymentc. Cheque deposited not credited by the
bankd. Insurance premium directly paid by the
bank .e. Dividend directly collected by the
bank.f. Overcasting of Dr. side of the cash
book.g. Undercasting of Cr side of the pass
book.h. Wrong over Cr made in the cash booki. Wrong under Dr made in the Pass book
Important TipsBook Dr Side Cr SideCash Book Receipts PaymentsPass Book Payment Receipts
30
Answer Sheet9.
Favo
rabl
eFe
vora
ble
Unf
avor
able
Unf
avor
able
Cas
hPa
ss B
ook
Cas
h Ba
lanc
eBo
ok B
alla
nce
Bala
nce
a. L
ess
Add
Add
Less
b. A
ddLe
ssLe
ssA
ddc.
Les
sA
ddA
ddLe
ssd.
Les
sA
ddA
ddLe
sse.
Add
Less
Less
Add
f. Le
ssA
ddA
ddLe
ssg.
Les
sA
ddA
ddLe
ssh.
Add
Less
Less
Add
i. A
ddLe
ssLe
ssA
dd
31
Depreciation
Question Bank1. Under which AS , Depreciation
Accounting is dealt with.2. Which type of Assets, depletion
method is used.3. Change in the method of
depreciation means4. Changes in method of depreciation
will take effect fromRetrospective/ Prospective.
5. What are those 2 common methodsof Depreciation generally used.
6. Obsolescence in an asset due to7. Depreciation is Real / Nominal /
Personal account8. Depreciation is cash / non cash
item.9. Under Annuity method amount of
depreciation remains-----.
32
Answer Sheet1. AS-62. Wasting Assets (mines & quarries)3. Changes in Accounting policies4. Retrospective5. WDV & SLM6. Technology Changes, Changes in
market demand for the product/service & legal or otherrestrictions.
7. Nominal A/c8. Non cash item.9. Same
33
10. Depreciation Fund method isspecially designed to provide
11. Annuity method is suitable for thoseassets where
12. Under sum of year digit method,the value of depreciation will
13. Under which method the value ofDepreciation remains constantduring its economic life of assets.
14. Book Value means15. On which asset generally
depreciation is not charged.16. Depreciation is a process of :-
valuation / allocation.17. ________ method of Depreciation
is applied for low valued assetswhich have ready market.
18. “Depreciable Amount” of adepreciable assets is its
19. Under WDV method , depreciation_ _ _ _ _ _ _ _ every year.
34
Answer Sheet10. Fund for assets replacement.11. Interest on amount is concerned.12. Decrease every year.13. SLM14. The value as shown in Financial
21. For the purpose of calculation ofDepreciation which type ofaccounting estimates are required
22. Scrap Value of an asset means theamount that it can fetch on sale atthe ---- of its ---- life.
23. Accelerated Depreciation methodis also called.
24. Net Realisable Value of an assetmeans.
25. Which one method is appropriatefor Leasehold Property.
26. Under which method ofDepreciation, the assets accountappears at its original cost over itslife.
27. An asset value will not get zerovalue under-----.
28. Which type of assets are appearingin in the books, which have novalue.
36
Answer Sheet20. Historical (Original) Cost21. Useful Life & Residual Value22. End, useful23. Sum of Year Digit method.24. Sale Price less cost incurred for sale.25. SLM26. Depreciation fund Method.27. WDV Method28. Fictitious Assets
37
Inventory Valuation
Question Bank1. Which AS is applicable for
Inventory Valuation?2. Can be Inventory an Intangible
assets?3. Spare parts of machinery are the
part of Inventory?4. Continuous information about the
stock is provided by5. What is the main feature of Base
Stock Method?6. Stock are valued at7. Stock is a part of Current asset or
fixed assets?8. Under FIFO method goods are
issued at9. Under LIFO method goods are
issued at
38
Answer Sheet1. AS-22. No3. No4. Perpetual inventory system5. To maintain minimum stock6. Cost or NRV , whichever is less7. Current Assets8. First receipts of goods9. Latest receipts of goods
39
10. In case of inflation ,whichinventory method would beconsidered suitable
11. When inventory is valued at Lowerof Cost or NRV, which concept isfollowed?
12. Improper valuation of inventoriesaffects
13. Net Realisable Value means14. Undervaluation of Closing Stock
will result15. What is the meaning of Cost
Formulae in inventory valuation?16. Under which system of Inventory
Valuation, Resultant Figures comesas Cost of Goods sold
17. Which one method will be used tovalue damaged stock
18. Under inventory valuation what isthe meaning of Cost?
19. What is the treatment of Stock withcustomers on approval basis?
40
Answer Sheet10. LIFO11. Conservatism Concept12. Balance Sheet & Profit and Loss a/
c13. Expected sale value less sales related
exp14. Current years income is
Understated15. Formulae used for pricing the goods16. Periodic Inventory System17. Net Realisable Value18. Cost of Goods + Conversion Cost
+ Other related costs to bring theinventory in its present condition
19. Add the cost of goods in closingstock
41
20. Conversion cost means21. By product should be valued at22. Which type of difference is not
there while valuing the goods atFIFO & LIFO method
23. Storage cost of WIP is form partof cost of inventory.
24. Stock for Share trading constitutesInventories.
25. Is there any applicability of AS-2in construction projects?
42
Answer Sheet20. Cost of Labor & Overhead (fixed
or variable)21. Net Realisable value22. Quantity of stock left23. No24. No25. No
43
Rectification of Mistakes
Question Bank1. Error of Principle means2. When Suspense a/c is opened?3. When P/L Adjustment a/c need to
be opened?4. Which type of errors do not affect
Trial Balance?5. Difference of Trial Balance is
transferred to
44
Answer Sheet1. Transactions recorded in
contravention with generalaccounting policies.
2. Errors find out after thepreparation of Trial Balance butbefore Financial Statement.
3. Errors find out after FinancialStatement (only for Nominalnature a/c)
4. Errors of Commission & Error ofPartial Omission
5. Suspense A/c
45
6. Rectify the following- Goodspurchased of Rs 5000a. No any entry has been passed.b. Only Cash a/c is credited.c. Only Purchase a/c is debited.d. Purchase a/c is debited with Rs
500 only.e. Cash a/c is credited with only
Rs 500.f. Cash a/c is wrongly debited.g. Purchase a/c is wrongly
credited.h. Sales a/c is debited wrongly.i. Sales a/c is credited wrongly.
Rectify all above by assuming that-A. Errors has been find out before
Trial Balance.B. Errors has been find out after Trial
Balance but before the finalizationof Financial Statements.
C. Errors has been find out after thefinalization of FianncialStatements.
46
Answer Sheet
a.Pu
rcha
sea
a/cD
r.500
0Pu
rcha
se a
/c D
r.50
00P/
L A
dj. a
/c D
r.50
00To
Cas
h50
0To
Cas
h50
00To
Cas
h50
00b.
Purc
hase
a/c
Dr.
5000
Purc
hase
a/c
Dr.
5000
P/L
Adj
. a/c
Dr.
5000
To S
uspe
nse
a/c
5000
To S
uspe
nse
a/c
5000
c.To
Cas
h50
00Su
spen
se a
/c D
r.50
00Su
spen
se a
/c D
r.50
00To
Cas
h50
00To
Cas
h50
00d.
Pruc
hase
a/c
Dr.
4500
Purc
hase
a/c
Dr.
4500
P/L
Adj
. a/c
Dr.
4500
To S
uspe
nse
a/c
4500
To S
uspe
nse
a/c
4500
e.To
Cas
h45
00Su
spen
se a
/c D
r.45
00Su
spen
se a
/c D
r.45
00To
Cas
h a/
c45
00To
Cas
h a/
c45
00f.
To C
ash
10,0
00Su
spen
se a
/c D
r.10
000
Susp
ense
a/c
Dr.
1000
0To
Cas
h a/
c10
000
To C
ash
a/c
1000
0g.
Purc
hase
a/c
1000
0Pu
rcha
se a
/c D
r.100
00P/
L A
dj a
/c D
r.10
000
To S
uspe
nse
ac/
1000
0To
Sus
pens
e a/
c10
000
h.Pu
rcha
se a
/c D
r.50
00Pu
rcha
se a
/c D
r.50
00P/
L A
dj. a
/c D
r.50
00To
Sal
es a
/c50
00To
Sal
es a
/c50
00To
P/L
Adj
. a/c
5000
i.Sa
les
a/c
Dr.
5000
Sale
s a/
c D
r.50
00P/
L A
dj. a
/c D
r.10
000
Purc
hase
a/c
Dr.
5000
Purc
hase
a/c
Dr.
5000
To S
uspe
nse
a/c
1000
0To
Sus
pens
e a/
c10
000
47
Bills of Exchange
Question Bank1. Under which act, Bills of Exchange
are covered?2. How many parties are in Bills of
Exchange?3. Bills of exchange contains4. Promissory Note contains5. Which one instrument can not be
payable to bearer.6. Cheque is a7. Indian currency is a8. When the bill is to be produced
before Notary Public?9. Who signs the Bill of exchange?10. Who accepts the bill of exchange?11. Who is the party to get the amount
of bill of exchange?12. Drawer means13. Bill Receivable is shown under
48
Answer Sheet1. Negotiable Instruments Act, 18812. Drawer, Drawee & payee3. Unconditional Order4. Unconditional Promise5. Promissory Note6. Bill of exchange7. Promissory Note8. At the time of the dishonour of
the bill9. Drawer10. Drawee11. Bearer / holder of the instrument12. A person who draws/ writes the bill13. Loans & Advances in the Balance
Sheet (Asset Side)
49
14. Calculation of Date of maturity ofbill
15. Endorsement of bill means16. What is the meaning of term of
bill?17. What is crossed cheque?18. The main motto of
Accommodation bill.19. Accommodation bill means20. Encashment of bill with bank
before its due date21. A bill is drawn in India & made
payable to outside India is22. Retirement of bill means23. B/R a/c is a personal / real a/c.24. After sight bill means25. Usually the term of the bill does
not exceed of26. Officer appointed by the
government for noting ofdishonored bill
50
Answer Sheet14. Due Date + 3 Days of Grace15. Transfer of right on Bill from
drawer to the creditor16. Duration of the bill17. Drawing two parallel lines18. To meet out the requirements of
funds by the parties.19. Bills of exchange drawn by two
people on each other for mutualbenefits.
20. Discounting21. Foreign Bill22. Making the payment of bill before
its due date23. Personal a/c24. Term of the bill beginning with the
date of signature of the drawee.25. 180 days26. Notary Public
51
Consignment Account
Question Bank1. Consignment account is in the
nature of-2. Consignee account is in the nature
of3. Goods sent on consignment account
is in the nature of4. The owner of the consignment
stock is5. In consignment, goods are sold on
the behalf & at the risk of6. In consignment the consignor
transfers _________ to consignee.7. What is the relationship between
consignor & consignee.8. A proforma invoice is sent by9. What is valuation method to record
unsold goods in consignment10. What is the treatment of Normal
Loss?
52
Answer Sheet1. Nominal Account.2. Personal Account3. Real Account4. Consignor5. Consignor6. Possession of goods7. Principle & Agent8. Consignor to consignee9. Original cost+ Proportion of (exp
by consignor + non recurring expby consignee.)
10. It is unavoidable & should be spreadover the entire consignment .
53
11. Commission provided by consignorto the consignee to promote creditsales is known as-
12. The loss which is due to inherentcharacteristic of goods known as
13. Avoidable loss is also known as14. Is there any need to pass journal
entry for normal loss15. If consignor gives Del creder
commission to consignee, the lossof bad debts will bear by
16. Why overriding commission is to bepaid?
17. What is loading in consignment?18. The Abhnormal Loss on
consignment is credited to19. Closing Stock on Consignment with
consignee, which account will bedebited
20. What is the main object to sendgoods at invoice price
54
Answer Sheet11. Del- creder Commission12. Normal Loss13. Abhnormal Loss14. No need15. Consignee16. For making sales above specified
price17. Goods sent at inflated rate18. Consignment A/c19. Consignment Stock a/c20. To hide the real profit.
9. Maximum number of members inany public company can not be inexcess of
10. Shares are a movable assets (True /False)
11. Maximum amount of share capitalthat a company can issue
12. Maximum limit of discount acompany can offer on its share
13. Discount on issue of share is in thenature of
14. Minimum amount to be called upat the time of share application is
15. Interest rate on calls in arrears is16. Interest rate on calls in advance is17. Calls in arrear is shown as18. Security premium is shown under19. Is it possible for a company to issue
bonus share if articles ofassociation does not permit.
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Answer Sheet9. Unlimited10. True11. Authorized Share Capital12. 10%13. Capital Loss14. 25%15. 5%16. 6%17. Reduced from subscribed share
capital18. Reserve & Surplus19. No
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20. What are the rates of commissionprescribed by Companies Act tounderwriters?
21. Main objects of the company arestated in
22. How many months of gap shouldbe there between two calls?
23. According to the SEBI guidelines ,what %age of subscription mustbe receive by company beforemaking any allotment of shares?
24. Is it necessary to receive theamount of Security Premium withthe amount of Allotment only?
25. Profit on reissue of forfeited sharesis transferred to .
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Answer Sheet20. Shares @5% & Debentures @ 2.5%21. Memorandum of Association22. 1 months23. 90%24. No, it can be receive with any calls.25. Capital Reserve
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Preference Shares &Debtenturesw
Question Bank1. Preference Shareholders are2. A Preference Shareholders can not
vote. (True / False)3. A transfer to Capital Redemption
7. Preference Shareholders gets8. Right shares are to be issued to9. Debenture holders are10. 9%, 10000 debentures of Rs 100
each. 9% stands for
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Answer Sheet1. Owner of the Company2. True3. Free Reserve4. Issue of Bonus Shares5. False6. Fresh issue of Equity shares & / or
Transfer of free reserve in CRR.7. Fixed %age of dividend8. Existing shareholders9. Lenders of the company10. Rate of Interest / Coupon rate
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11. Can debenture be redeemed atdiscount?
12. Premium on redemption ofdebenture is a Real Account.
13. Loss on issue of Debenture isgenerally written off in
14. Interest paid to Debenture holdersis an appropriation of profit.
15. Discount on issue of debenture is a16. In case of Investment , market
price must be disclosed in case of17. Which schedule of the Companies
act deal with the presentation offinancial statements?
18. There are no legal restrictionssimilar to shares, for issue ofdebentures at a discount.
19. Can debentures be issued atdiscount?
20. Types of Debentures?
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Answer Sheet11. No.12. No, Nominal a/c13. Over the period of redemption.14. No, it is a charge against profit.15. Capital Loss16. Quoted Investment17. Schedule VI18. True19. True20. a. Registered Debentures
b. Bearer Debenturesc. Secured or Mortgage Debenturesd. Unsecured Debenturese. Redeemable Debenturesf. Irredeemable Debenturesg. Convertible Debenturesh. Non Convertible Debentures