A company issued 10,000 shares of ₹10 each at par, payable ₹2 on application, ₹3 on allotment, ₹5 on call. A shareholder holding 500 shares failed to pay call money. Calls-in-arrears amount is: MCQ with Answer and Explanation

A company issued 10,000 shares of ₹10 each at par, payable ₹2 on application, ₹3 on allotment, ₹5 on call. A shareholder holding 500 shares failed to pay call money. Calls-in-arrears amount is:
A. ₹2,500
B. ₹5,000
C. ₹1,500
D. ₹1,000
Answer: Option A
Solution (By JKSSB Mock Tests)
Call money unpaid = 500 shares * ₹5 = ₹2,500.

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Practice More Accountancy and Book Keeping Questions

Question #1
While preparing a Bank Reconciliation Statement, a cheque deposited but not yet cleared is:
A. Deducted from the cash book balance
B. Added to the cash book balance
C. Deducted from the bank statement balance
D. Added to the bank statement balance

Correct Answer: Option D


Explanation:
When starting from bank statement (pass book) balance, a deposit in transit must be added because it's not yet reflected in the bank statement.

Question #2
Which accounting system violates the matching principle?
A. Mercantile System
B. Fund-based System
C. Cash System
D. Accrual System

Correct Answer: Option C


Explanation:
The cash system violates the matching principle because it does not match the revenues of a specific period with the expenses incurred to generate them.

Question #3
'Substance over Form' is a concept that means:
A. Form is more important
B. Transactions should be accounted for according to their economic reality
C. Legal form prevails
D. Transactions should be accounted for based on their legal form

Correct Answer: Option B


Explanation:
Substance over form emphasizes economic substance rather than merely legal form.