Accountancy share capital chapter answers
Answers
Answer:
NCERT Solutions for Class 12 Accountancy Part II Chapter 1
NCERT Solutions for Class 12 Accountancy Part II Chapter 1 Accounting for Share Capital
NCERT SolutionsCBSE Sample Papers AccountancyClass 12 Accountancy
Test Your Understanding I
• State which of the following statements are true
(a) A company is formed according to the provisions of Indian Companies Act, 1932.
Answer False
(b) A company is an artificial person.
Answer True
(c)Shareholders of a company are liable for the acts of the company.
Answer False
(d) Every member of a company is entitled to take part in its management.
Answer False
(e) Company’s shares are generally transferable.
Answer True
(f) Share application account is a personal account.
Answer True
(g) The director of a company must be a shareholder.
Answer True
(h) Application money should not be less than 25% of the face value of shares.
Answer False
(i) Paid-up capital can exceed called-up capital. .
Answer True
(j) Capital reserves are created from capital profits.
Answer True
(k) Securities premium account is shown on the assets side of the balance sheet.
Answer False
(l) Premium on issue of shares is a capital loss.
Answer False
(m) At the time of issue of shares, the maximum rate of securities premium is 10%.
Answer False
(n) The part of capital which is called-up only on winding up is called reserve capital.
Answer True
(o) Forfeited shares can not be issued at a discount.
Answer False
(p) The shares originally issued at discount may be re-issued at a premium.
Answer True