Accounting for Share Capital

23 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Accounting for Share Capital' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Accounting for Share Capital'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Accounting for Share Capital' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Accounting for Share Capital'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Accounting for Share Capital' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Accounting for Share Capital'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Accounting for Share Capital'? medium MCQ Chapter Summary & Takeaway
• 8 A company issues 10,000 shares of ₹50 each at ₹45 per share. The issue is at a discount. Calculate the debit entry for the discount, the amount to be transferred to a capital reserves account, and the final amount to be credited to Share Capital. hard 4 marks Issue at discount and transfer to reserves
• 9 A company issues 20,000 shares of ₹10 each at ₹12 per share. Prepare the journal entry for the issue. easy 2 marks Issue of shares at premium
• 10 A company bought back 5,000 of its own shares at ₹15 per share and later reissued them at ₹18 per share. Compute the effect on the Share Premium account on reissue. medium 3 marks Buyback and reissue effect
• 11 A company declares a cash dividend of ₹1 per share on its 20,000 shares of ₹10 each. It has a reserves and surplus of ₹500,000. Prepare the journal entries for the declaration of dividend and for the payment of dividend. Also state the amount that will be transferred to the reserves and surplus account. hard 3 marks Declaration and payment of dividend
• 12 A company issues 12,000 equity shares of ₹100 each at ₹92 per share (i.e., at a discount). As per the Companies Act, 50% of the discount is transferred to a Capital Reserve and the remaining 50% is written off as loss. Determine (i) the amount to be debited to Discount on Issue of Shares account, (ii) the amount transferred to Capital Reserve, (iii) the amount written off as loss, and (iv) the final amount credited to Share Capital account. hard 5 marks Issue of shares at discount and reserve transfer
• 13 A company bought back 3,000 of its own shares at ₹25 each. Later it reissued 2,000 of those shares at ₹28 each and the remaining 1,000 at ₹24 each. Compute the net effect on the Share Premium account after reissue. medium 3 marks Buy‑back and re‑issue of treasury shares
• 14 A company issues 15,000 equity shares of ₹20 each at ₹22 per share. Prepare the journal entry for the issue of shares. easy 2 marks Issue of shares at premium
• 15 A company bought back 4,000 of its own shares at ₹20 each. Later it reissued 2,500 of those shares at ₹22 each and 1,500 at ₹18 each. What is the net effect on the Share Premium account after the reissue? medium MCQ 3 marks Effect of reissue on share premium
• 16 A company issued 10,000 shares of ₹100 each at ₹90 each. The issue is at a discount. As per Companies Act, 70% of the discount is transferred to Capital Reserve and the remaining 30% is written off as a loss. Compute: (i) Debit entry to Discount on Issue of Shares; (ii) Amount transferred to Capital Reserve; (iii) Amount written off as loss; (iv) Final credit to Share Capital. Also prepare the journal entry for the issue of shares. hard 5 marks Discount handling in share issue
• 17 An incorporated company issues 8,000 equity shares with nominal value ₹25 each at a premium of ₹5 per share. Prepare the journal entry for the issue of shares. easy 1 mark Share issue at premium
• 18 A company issues 12,000 shares of ₹50 each at ₹48 each. Calculate: medium 2 marks Discount on share issue
• 19 A company issues 10,000 shares of ₹50 each at ₹45 each. According to Companies Act, 40% of the discount is transferred to Capital Reserve and the remaining 60% is written off as a loss. Calculate: (i) Debit entry to Discount on Issue of Shares; (ii) Amount transferred to Capital Reserve; (iii) Amount written off as loss; (iv) Final credit to Share Capital. medium 2 marks Transfer of discount to Capital Reserve and Loss
• 20 A company issues 3,000 equity shares of ₹10 each at ₹12 each. Prepare the journal entry for the issue. easy 1 mark Journal entry for share issue at premium
• 21 A company bought back 3,500 of its own shares at ₹40 each. The shares were originally issued at ₹20 each without premium. Later, it reissued 2,000 of those shares at ₹45 each and 1,500 at ₹38 each. Determine the net effect on the Share Premium account after the reissue. Also calculate the effect on Capital Reserve. hard 4 marks Effect of reissue on Share Premium and Capital Reserve
• 22 A company issued 8,000 shares of ₹40 each at a discount of ₹5 per share. As per Companies Act, 70% of the discount is transferred to Capital Reserve and the remaining 30% is written off as loss. (i) Debit entry to Discount on Issue of Shares; (ii) Amount transferred to Capital Reserve; (iii) Amount written off as loss; (iv) Final credit to Share Capital. Also, after reissuing 4,000 of these shares at ₹38 each and the remaining 4,000 at ₹45 each, compute the net effect on the Share Capital account. hard 5 marks Accounting for discount on issue and reissue effects
• 23 Which account is credited when a company issues shares at a premium? easy MCQ 1 mark Account credited for share premium