A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be: MCQ with Answer and Explanation

A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:
A. ₹2,20,000
B. ₹2,40,000
C. ₹1,60,000
D. ₹2,00,000
Answer: Option B
Solution (By JKSSB Mock Tests)
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is typically maintained using the imprest system?
A. Main Cash Book
B. Sales Ledger
C. Petty Cash Book
D. Purchase Day Book

Correct Answer: Option C


Explanation:
The Petty Cash Book uses the imprest system where a fixed float is maintained and actual expenses are reimbursed periodically.

Question #2
The 'Dividend Distribution Tax' (DDT) was abolished and dividend now taxed in hands of:
A. Both
B. Company
C. No tax
D. Shareholder

Correct Answer: Option D


Explanation:
From FY 2020-21, DDT was abolished; dividend is taxable in the hands of shareholders.

Question #3
Goods worth ₹1,000 taken by proprietor for personal use should be recorded by:
A. Crediting sales account
B. Debiting drawings account
C. Debiting purchases account
D. No entry

Correct Answer: Option B


Explanation:
Entry: Drawings A/c Dr. To Purchases A/c. So drawings debited.