Q. As per the SEBI guidelines, on issue of shares, the application money should not be less than
✅ Correct Answer: (C)
25% of the issue price of shares
Financial Accounting 2 MCQs and Notes
Q. When shares are forfeited, the share capital account is debited with ________ and the share forfeiture account is credited with __________.
✅ Correct Answer: (C)
called up capital of shares forfeited; amount received on shares forfeited
Q. The Securities Premium amount may be utilized by a company for __________.
✅ Correct Answer: (C)
writing off the expenses/discount on the issue of debentures
Q. The excess price received over the par value of shares, should be credited __________.
✅ Correct Answer: (C)
securities premium account
Q. Discount on issue of debentures is shown under the heading in a company's Balance Sheet _______
✅ Correct Answer: (D)
miscellaneous expenditure
Q. Debentures represent the _________
✅ Correct Answer: (C)
long term borrowing of a business
Q. Forfeited shares to become ________
✅ Correct Answer: (B)
property of the company
Q. To issue shares on Discount mean
✅ Correct Answer: (C)
issue on less than face value of shares
Q. To issue shares on Par mean
✅ Correct Answer: (A)
issue on face value of shares
Q. To issue shares on premium mean
✅ Correct Answer: (B)
issue on more than face value of shares