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Class 12 Accounting for Share Capital worksheet

CBSE Accountancy. Kinds of share capital, issue of shares at par and premium, pro-rata allotment, calls in arrears, forfeiture and reissue of shares, capital reserve and the share capital note. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.

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Sample questions

Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.

Section A · multiple choice

  1. 1.

    The maximum amount of share capital a company is allowed to raise is its:

    1. subscribed capital
    2. paid-up capital
    3. issued capital
    4. authorised capital
    Answer

    (d) authorised capital

  2. 2.

    What is meant by “called-up capital”?

    1. the part of subscribed capital the company has asked shareholders to pay
    2. allotting shares to applicants in proportion to the shares they applied for
    3. the amount received over the face value of shares
    4. uncalled capital that a company resolves to call only on winding up
    Answer

    (a) the part of subscribed capital the company has asked shareholders to pay

  3. 3.

    Securities premium may be used for:

    1. meeting day-to-day expenses
    2. paying salaries
    3. paying dividends
    4. providing for premium on redemption of debentures
    Answer

    (d) providing for premium on redemption of debentures

Section B · short answer

  1. 4.

    Give two features of a company.

    Answer

    Any two: separate legal entity, perpetual succession, limited liability, transferability of shares, common seal, separation of ownership and management.

  2. 5.

    Explain each term: (a) securities premium (b) calls in advance

    Answer

    (a) the amount received over the face value of shares (b) amounts received from shareholders before they are called up

Section C · long answer

  1. 6.

    Explain the different categories of share capital shown in a company’s balance sheet.

    Answer

    Authorised, issued, subscribed (fully paid, and subscribed but not fully paid), called-up and paid-up capital, with calls in arrears deducted and forfeited shares added.

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