Sem - 3 Advanced Corporate Accounting - 1 MCQ Accounting Standards (As) /lease Accounting
Sem - 3 Advanced Corporate Accounting - 1 MCQ Accounting Standards (As) /lease Accounting
Sem - 3 Advanced Corporate Accounting - 1 MCQ Accounting Standards (As) /lease Accounting
MCQ
1. The Maximum rate of underwriting commission in case of Shares and Debentures as per
Companies Act should be respectively;
(A) 5% & 2.5% of face value
(B) 5% & 2.5% of Issue price
(C) 2.5% & 5% of face value
(D) 2.5% & 5% of Issue price
2. When only one underwriter has underwritten the issue only partly, then the deduction is
made from his original liability-
(A) For unmarked applications
(B) For marked applications
(C) For his Firm underwriting
(D) None of above
3. If any underwriter has a negative liability, then that amount is divided between the
remaining partners;
(A) Proportion of original liability
(B) In profit sharing ratio
(C) Equally
(D) None of above
4. If debenture price of Rs 90 (Face value Rs 100) maximum amount of underwriting
commission allowable is –
(A) Rs 2.50 (B) Rs 1.80 (C) Rs 2.25 (90x2.5%) (D) Rs 2.75
5. On Equity shares of Rs 100 each, issued at Rs 125 per share, the maximum amount of
underwriting commission payable to underwriter should be-
(A) Rs 6 (B) Rs 4.75 (C) Rs 3.90 (D) Rs 6.25 (125x5%)
6. Under which section of Companies Act, there are certain restrictions regarding the
payment of Underwriting commission?
(A) 76 (B) 78 (C) 80 (D) 82
7. Entry passed when the amount of underwriting commission is being fixed-
(A) Bank Dr. To Underwriters a/c
(B) Underwriters a/c Dr. To Underwriting commission a/c
(C) Underwriting commission a/c Dr. To Bank
(D) Underwriting commission a/c Dr. To Underwriters a/c
8. By closing underwriting commission a/c in which account the balance will be carry
forwarded by the company?
(A) Share Capital (B) Profit and Loss a/c (C) Underwriters a/c (D) Bank a/c
9. On equity shares of Rs 100 each issued at Rs 140 per share, the maximum of
underwriting commission payable to underwriters will be –
(A) Rs 6.25 (B) Rs 5.25 (C) Rs 6 (D) Rs 7
10. Net Liability in firm underwriting means –
(A) Firm liability
(B) Normal liability
(C) Normal Net liability + Firm Liability
(D) Net liability less Firm liablity
11. The company should have powers to provide underwriting commission by its-
(A) Articles of Association
(B) Memorandum of Association
(C) Under companies Act 1956
(D) Under Underwriting contract
12. _______can underwrite a public issue of shares or debentures.
(A) An Individual (B) Finance company (C) More than one individual (D) All of above
13. How will share underwriters considered from the view point of company?
(A) Third parties (B) Promoters (C) Regulators (D) None of above
SY B.Com Sem 3
MCQs
1. From the following. Who cannot file the application for winding up the company?
(a) Company (b) stack holders (c) Creditors (d) Debtors
2. 14 days notice is to be given when a company has passed resolution for voluntary
winding up.
3. A liquidator is an independent person from the business to complete the process of
liquidation.
4. A liquidator should prepare final statement on completion of liquidation.
5. Employee’s gratuity is considered as unsecured creditor. – False (Preferential creditor)
6. Employee’s provident fund is considered as preferential creditor.- True
7. Workers’ dues are payable in priority to government dues. –True
8. A liquidator cannot keep the sum received on behalf of the company more than Rs. 500
for more than 10 days.
9. Debentures are less secured than fully secured creditors.
10. Which mode of the winding up the companies, will be called compulsory winding up?
(a) Winding up by the tribunal (b) Voluntary winding up
(b) Winding up subject to the supervision of the tribunal (d) None of the above.
11. Which of the following is not the preferential creditor?
(a) Provident fund of staff (b) Leave remuneration (c) Municipal tax (d) all of the above.
12. If the company is solvent, the interest on debenture is paid until the date of payment.
13. The liquidator’s statement is similar as Cash Account. - True
14. The liquidator has cash on hand Rs. 102000 to pay to creditors. The liquidator is entitled
to remuneration at 2% on the amount distributed to the creditors. What can be the amount
of remuneration?
(a) Rs. 1000 (b) Rs. 2040 (c) Rs. 2000 (d) None of the above.
15. If the company is insolvent, the interest on debenture is paid till the date of winding up. -
True
16. Outstanding salary upto maximum Rs. 20,000 is to be treated as preferential creditors.
17. The shareholders who ceased to be shareholders within one year from the date of winding
up are kwon as List B Contributories except due to death.
18. The distribution of capital deficiency should be done in which ratio?
(a) In number of Shares (b) In Nominal value (c) Both a & b (d) none of the above.
19. According to supreme court directions, debenture holders are paid prior to preferential
creditors.
20. Liquidator’s statement is a ledger account and part of double account system. – False
21. Receipt side of the liquidator’s statement include the followings,
(a) Bank Balance (b) Surplus from secured creditors (d) All of the above.
22. Salary of four clerks is monthly Rs. 30,000 each, which is outstanding for last two
months. How much amount would be considered as preferential creditors at the time of
liquidation?
(a) Rs. 2,40,000 (b) Rs. 2,00,000 (c) Rs. 80,000 (d) None of the above
23. Following items are not a part of liquidator’s statement?
(a) Goodwill (b) Profit & Loss account (c) a & b (d) None of the above.
24. Accrued leave remuneration is considered as preferential creditor.- True
25. Fully secured creditors are paid first among all the creditors.
1) If under the scheme of capital reduction, creditors agree to waive a part of their dues,
then waived amount will be transferred to-
(A) share capital account
(B) creditors account
(C) capital reduction account
(D) Profit & Loss account
10) If under the scheme of capital reduction, the damaged machinery worth Rs. 1,50,000 is
sold out as a scrap for Rs.25,000, then –
(A) Rs.25,000 should be credited to capital reduction account
(B) Rs. 1,50,000 should be debited to capital reduction account
(C) Rs. 1,75,000 should be credited to capital reduction account
(D) Rs. 1,25,000 should be debited to capital reduction account
11) If under the scheme of capital reduction, out of the preference dividend in arrears of
Rs. 75,000 ( Which was not declared and not paid), Rs. 50,000 is waived by preference
Shareholders, then
12) Under the scheme of capital reduction, balance left in capital reduction A/c, after writing
of Accumulated losses, is transferred to-
14) After implementing the scheme of internal capital reduction, the company is –
(A) Continued
(B) Dissolved
16) At the time of capital reduction, outstanding director fees was Rs. 20,000, 60% director fees
were already paid. Outstanding director fee is waved by directors and directors fee paid to
directors are repaid to the company by them. Then ________ will be credited to Capital
Reduction A/C.
17) For the capital reduction scheme, in which Sections of Company Act, the provisions are
made?
18) Reconstruction expenses paid for implementing the capital reduction scheme –
(C) Creditors
20) While applying scheme of reduction of capital, if there is decrease on asset side in the
Balance Sheet –
21) Total amount in capital reduction Fund is Rs. 27,50,000. Total application of capital
reduction Fund is Rs.27,25,000. So closing balance of capital reduction Fund –
22) K.K. Co’s. market value of freehold property is Rs. 7,50,000, which is 25% more its book
value, so under capital reduction scheme –
24) If under the scheme of capital reduction, out of the preference dividend in arrears of Rs.
90,000 (Which was not declared and not paid),Rs. 60,000 is waived by preference shareholders
then –
25) While applying scheme of reduction of capital, if there is an increase on asset side in the
Balance Sheet –