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Accounting MCQs for CA Foundation
Chapter-wise Accounting MCQs with answers and explanations. Try the sample questions below, then practise a set of 10 with instant right/wrong.
Practise 10 Accounts MCQsSample Accounting MCQs with answers
Q1 · CH-Company Accounts
X Ltd. issued 10,000 equity shares of ₹10 each at a premium of ₹2 per share. The premium is payable with allotment. Which account is credited with ₹20,000 at the time of allotment?
- (a) Share Capital Account
- (b) Securities Premium Account
- (c) Capital Reserve Account
- (d) General Reserve Account
Show answer ↓
Answer: (b) Securities Premium Account
(b) is correct: premium received on issue of shares is credited to Securities Premium Account. It is not share capital, which is credited only with the face value.
Q2 · CH-Company Accounts
A shareholder holding 200 shares of ₹10 each (issued at par) failed to pay the final call of ₹3 per share. All other money was received and the shares were forfeited. The amount credited to Share Forfeiture Account is:
- (a) ₹2,000
- (b) ₹600
- (c) ₹1,400
- (d) ₹1,000
Show answer ↓
Answer: (c) ₹1,400
(c) is correct: the amount received is 200 × ₹7 = ₹1,400, and this is credited to Share Forfeiture. ₹600 is the unpaid call, which is credited to Calls in Arrears or the call account.
Q3 · CH-Company Accounts
Under Table F of the Companies Act, 2013, the maximum rate of interest payable on calls in advance (if the articles are silent) is:
- (a) 10% p.a.
- (b) 6% p.a.
- (c) 12% p.a.
- (d) 5% p.a.
Show answer ↓
Answer: (c) 12% p.a.
(c) is correct: under Table F, interest on calls in advance can be paid at up to 12% p.a. 10% p.a. is the rate for interest charged on calls in arrears.
Q4 · CH-Company Accounts
Under Table F, the maximum interest a company may charge on calls in arrears is:
- (a) 12% p.a.
- (b) 8% p.a.
- (c) 6% p.a.
- (d) 10% p.a.
Show answer ↓
Answer: (d) 10% p.a.
(d) is correct: Table F allows interest of up to 10% p.a. on calls in arrears. 12% p.a. is the limit for interest paid on calls in advance.
Q5 · CH-Company Accounts
Shares forfeited are reissued. The maximum discount that can be allowed on reissue is limited to:
- (a) The amount forfeited on those shares
- (b) 10% of face value
- (c) The unpaid amount
- (d) The securities premium
Show answer ↓
Answer: (a) The amount forfeited on those shares
(a) is correct: the discount on reissue cannot exceed the amount forfeited on those shares. A flat 10% of face value is not the rule for reissue of forfeited shares.
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