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

(c)
Twice an increase in the total share capital as previously owned by the shareholders
(d)
An increase in par value per share
(e)
An increase in total shareholder’s equity.
(1 mark)
< ans >
29.
The authorized capital of Chand Ltd. is 1,00,000shares of Rs.10 every. On April10, 2006, 50,000 shares were issued for subscription at a premium of Rs.2 pe
rshare. The share money is payable was follows:
Rs.5 (including the premium of Rs.2) with application,
Rs.3 on allotment,
Rs.2 on 1st call,
Rs.2 on final call.
The subscription list closed on May 11, 2006 and the directors proceeded withallotment on May 18, 2006. The shares are fully subscribed and the applicationmoney (including the premium) is received in full. The allotment money isreceived by June 30, 2006, other than on 500 shares held by Naveen.
The 1st call and the final call money is received by September 30, 2006, andDecember 31, 2006, respectively, other than the final call money on 200 shares held byVineeth which is not received.
Assuming that, there are no other transactions, the cash balance as on December31, 2006 was
(a)
Rs.8,46,100
(b)
Rs.6,00,000
(c)
Rs.5,96,100
(d)
Rs.4,96,000
(e)
Rs.5,98,100.
(2 marks)
< ans >
30.
A company can capitalize its substantial reserves by
(a)
problem of Bonus shares
(b)
problem of Right shares for a price less than the market price
(c)
Declaring higher dividends
(d)
Conversion of debentures into equity shares
(e)
Acquiring fixed assets.
(1 mark)
< ans >
31.
Which of the subsequent would notaffect total Retained Earnings? (Assume it is theend of the financial year, and that the books have been closed.)
(a)
Dividend declared
(b)
Net Income
(c)
Bonus problem
(d)
Stock split
(e)
Right problem.
(1 mark)
< ans >
32.
A company invited applications for 30,000 equity shares of Rs.10 every at a
premium of Rs.2 every. The application money of Rs.2 per share for 40,000 shareswas received. Which of the subsequent options cannot be followed?
(a)
Allot shares in full to all the applicants
(b)
Allot shares on pro-rata to all the applicants
(c)
Not to allot any share to a few applicants, full allotment may be made to a few other applicants and pro-rata allotment may be made to the rest
(d)
Not to allot any share to a few applicants and make pro-rata allotment to other applicants
(e)
Make allotment to a few and reject the rest.
(1 mark)
< ans >

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