Q. Pro-rata payment is applicable when the cash available for competing liabilities of the same class is..
✅ Correct Answer: (A)
insufficient
Financial Accounting MCQs and Notes
Q. Debenture holders are :
✅ Correct Answer: (C)
Creditors of the Company
Q. Madhu Ltd. forfeited 800 shares of `10 each issued at 10% premium to Shyam (` 9 called up) on which he did not pay ` 3 of allotment (including premium) and first call of `2. Out of these, 600 shares were re-issued to Ram as fully paid up for `9 per share. What is to amount to be transferred to capital Reserve?
✅ Correct Answer: (A)
`2,400
Q. The balance of the forfeited shares account after re-issue of forfeited shares is transferred to :
✅ Correct Answer: (C)
Capital Reserve A/c
Q. Discount allowed on re-issue of forfeited shares is debited to :
✅ Correct Answer: (B)
Share forfeiture A/c
Q. If 500 shares of 10 issued at a premium of 1 on which 9 (including premium) have been called and 7 including premium have been paid are forfeited, the forfeiture account should be credited by :
✅ Correct Answer: (A)
3,000
Q. If applicants for 80,000 shares were allotted 60,000 shares on prorata basis, the shareholder who was allotted 1,200 shares must have applied for :
✅ Correct Answer: (C)
1,600 Shares
Q. Pro-rata allotment of shares is made when there is :
✅ Correct Answer: (B)
Oversubscription
Q. From which account, expenses on issue of shares will be written off first of all:
✅ Correct Answer: (D)
Securities Premium Reserve Account
Q. Premium on the issue of shares should be shown :
✅ Correct Answer: (B)
On the Equity & Liabilities side of balance sheet