Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – II (112): - Question Paper

The amount transferred from shares forfeited account to capital reserve in respectof 300 shares reissued to Mr.Sachin is
(a)
Nil
(b)
Rs.4,800.00
(c)
Rs.1,200.00
(d)
Rs.2,100.00
(e)
Rs. 300.00.
(2 marks)
< ans >
17.
On December 30, 2006, Supreme Company had 7,00,000 shares of common stockof which 3,00,000 had been issued on October 1, 2006. The company declared a two for one stock split on December 31, 2006. The weighted number of sharesoutstanding for computation of Earning per share would be
(a)
10,00,000
(b)
8,50,000
(c)
1,40,000
(d)
9,50,000
(e)
8,00,000.
(2 marks)
< ans >
18.
Zidney Ltd. issued 20,000 equity shares of Rs.100 every at par, out of which, onlyRs.85 is called up. Mr. Arun did not pay the call money of Rs.25 and hence all the 1,000 shares allotted to him were forfeited. If all these shares are to be re-issued as fully paid-up, the minimum amount to be collected is
(a)
Rs. 40,000
(b)
Rs.1,00,000
(c)
Rs. 15,000
(d)
Rs. 60,000
(e)
Rs. 25,000.
(2 marks)
< ans >
19.
The share capital of Sanjana Ltd. is Rs.10,00,000 consisting of 1,000, 15%preference shares of Rs.100 every fully paid and 9,000 equity shares of Rs.100 eachRs.90 paid-up. The profit of the company for the year 2005-2006 is Rs.1,12,200. The normal rate of return is 8%. The value of equity share of the company is
(a)
Rs.171
(b)
Rs.125
(c)
Rs.150
(d)
Rs.135
(e)
Rs.263.
(2 marks)
< ans >
20.
The total of shareholders’ equity will increase, if a company
(a)
problems equity shares at a premium
(b)
Declares and distributes a share split
(c)
Declares and distributes a 50% Bonus shares
(d)
Declares and pays a cash dividend
(e)
Declares a reverse share split.
(1 mark)
< ans >
21.
Which of the subsequent statements is false?
(a)
Introduction of free pricing enabled companies to problem shares at a premium without any ceiling on premium
(b)
Shares can be issued at a premium or at a discount or for consideration other than cash
(c)
Shares cannot be issued to promoters in lieu of the services rendered by them
(d)
Discount on problem of shares can be written off against share premium account over a period of time
(e)
The shares that are to be issued at discount should be of a class which has already been issued.
(1 mark)
< ans >
22.
The capitalization rate of a company, whose market price per share is Rs.28, netincome is Rs.20 lakhs and the number of outstanding shares is 5.6 lakhs, is

Earning:   Approval pending.