MCQs For NCERT Class 12 Accountancy Chapter 1 Accounting for Share Capital

Please refer to the MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Share Capital with Answers. The following Accounting for Share Capital Class 12 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Accountancy with Answers for all chapters in your NCERT Class 12 Accountancy book.

Accounting for Share Capital Class 12 MCQ Questions with Answers

See below Accounting for Share Capital Class 12 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. Amount of money not received out of called up capital is :         
(a) Added to share capital
(b) Subtracted from share capital
(c) Shown as current liabilities
(d) Shown as current asset

Question.Maximum limit of premium on shares is :       
(a) 32%
(b) 20%
(c) No limit
(d) 100%

Question. Amount of money not received out of called up capital is :         
(a) Added to share capital
(b) Subtracted from share capital
(c) Shown as current liabilities
(d) Shown as current asset

Question.Maximum limit of premium on shares is :       
(a) 32%
(b) 20%
(c) No limit
(d) 100%

Question.Following amounts were payable on issue of shares by a company : Rs.3 on application , Rs.3 on allotment , Rs.2 on first call and Rs.2 on final call . X holding  500 shares paid only application and allotment money  whereas Y holding 400 shares did not pay final call . Amount of calls in arrear will be:       
(a) 3,800
(b) 2,800
(c) 1,800
(d) 6,200

Question.E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, application money on another  6000 shares  was refunded .The amount payable on the application was Rs.2. Sitaraman applied for 420 shares . The number of shares allotted to him will be:           
(a) 60 shares
(b) 340 shares
(c) 320 shares
(d) 300 shares

Question: Discount of issue of share shows debit balance and hence shown on the assets side of the balance sheet under the head
(a) Miscellaneous expenditure.
(b) Reserves and surplus
(c) Share capital
(d) Current liabilities

Question: As per section 78 of the companies act, amount collected as premium on securities cannot be utilised for:
(a) Purchase of fixed assets
(b) Writing off preliminary expenses
(c) Buy back of its own shares
(d) Premium payable on redemption of preference shares

Question: The portion of the authorised capital which can be called-up only on the liquidation of the company is called
(a) Reserve capital
(b) Authorised capita
(c) Issued capital
(d) Called up capital

Question: A company is said to be Deemed Public company if its Annual Turnover exceeds
(a) 25 Crores.
(b) 20 Crore
(c) 30 Crore
(d) None of the options

Question: Which of the following statement is false?
(a) A company can raise funds beyond its Authorised capital.
(b) Declared dividend should be classified in the balance sheet as a current liability.
(c) Dividends are usually paid as a percentage of paid-up-capital.
(d) As per the companies act, only preference shares which are redeemable within 20 years can be issued.

Question: Which of the following statements are correct?
(a) Paid-up-capital = called-up-capital – calls in arrear
(b) Subscribed capital is that part of capital which is offered to the public for subscription.
(c) Issued capital is that part of authorised capital which is applied by the public and allotted by company.
(d) None of the options

Question: Which of the following is not a statistical book of a company?
(a) Register of debenture holders
(b) Share application and allotment book
(c) Register of share warrants
(d) Register of shares and debentures transferred

Question: Share application and allotment account is a:
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the options

Question: Securities premium once received cannot be cancelled.
(a) True
(b) False
(c) Both
(d) None of the options

Question: Technique used for marketing a public offer of equity shares of a company is called book building process.
(a) False
(b) True
(c) Both
(d) None of the options

Question: As per SEBI guidelines, A new company without any track record can issue share at a premium.
(a) False
(b) True
(c) Both
(d) None of the options

Question: Share capital suspense account is opened when:
(a) When application money is received but balance sheet is prepared before allotment of shares.
(b) Balance sheet is not tallied
(c) When dividend is declared but not paid
(d) When shares are forfeited

Question: Penalty for delay in refunding application money
(a) 0.06
(b) 0.05
(c) 0.2
(d) 0.15

Question: Which of the following is not a statutory book of a company?
(a) Agenda book
(b) Annual returns
(c) Minutes book
(d) Register of fixed deposits

Question: A company can issue share at a discount if
(a) All of the options
(b) One year have been elapsed since the date at which the company was allowed to commence business
(c) Shares issued at a discount must belong to a class of shares already issued
(d) Issue must take place within two must after the date of sanction by the court or within extended time

Question: Maximum number of members in a private company is :
(a) 7
(b) 200
(c) 20
(d) No Limit (ii) Meaning, Nature and Types of Shares

Question: Capital of a Company is divided in units which is called :
(a) Debenture
(b) Share
(c) Stock
(d) Bond

Question: Shareholders receive from the company:
(a) Interest
(b) Commission
(c) Profit
(d) Dividend

Question: Voluntary return of shares for concellation by the shareholders is called
(a) Cancellation of shares
(b) Forfeiture
(c) Surrender of shares
(d) None of these

Question: If the Premium on the forfeited shares has already been received, then Securities Premium A/c should be
(a) Credited
(b) Debited
(c) No treatment
(d) None of these

Question: Balance of share forfeiture account is shown in the balance sheet under the head
(a) Share Capital Account
(b) Reserve and Surplus
(c) Current Liabilities and Provisions
(d) Unsecured Loans

Question: 700 shares of Rs. 10 each were reissued as Rs. 9 paid up for Rs.7 per share. Entiy for reissue will be :
(a) Bank A/c Dr. 4,900 Share Discount A/c Dr. 1,400 To Share Capital A/c 6,300
(b) Bank A/c Dr. 4,900 To Share Capital A/c 4,900
(c) Bank A/c Dr. 4,900 Share Forfeiture A/c Dr. 1,400 To Share Capital A/c 6,300
(d) Bank A/c Dr. 4,900 Share Forfeiture A/c Dr. 2,100 To Share Capital A/c 7,000

Question: A Ltd. forfeited 2,000 shares of Rs.10 each fully called up for non-payment of final call of Rs.2 per share. 1,200 of these shares were reissued at Rs.7 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account?
(a) Rs. 7,600
(b) Rs. 1,200
(c) Rs. 12,400
(d) Rs. 6,000

Question: Using information given in above question, what is the net balance in Share Forfeiture Account:
(a) Rs.9,600
(b) Rs.6,400
(c) Rs. 16,000
(d) Rs.2,800

Question: Maximum limit of Premium on shares is:
(a) 5%
(b) 10%
(c) No Limit
(d) 100%

Question: When a company issues shares at a premium, the amount of premium should be received by the company :
(a) Along with application money
(b) Along with allotment money
(c) Along with calls
(d) Along with any of the above

Question:Amount of securities premium can be utilised for:
(a) Writing off the preliminary expenses of the company
(b) Issuing bonus shares to the shareholders of the company
(c) Buy-back of its own shares
(d) All of the above

Question: Which shareholders are returned their capital after some specified time :
(a) Redeemable Preference Shares
(b) Irredeemable Preference Shares
(c) Cumulative Preference Shares
(d) Participating Preference Shares

Question: The following statements apply to equity/preference shareholders. Which one of them applies only to preference sharehoders?
(a) Shareholders risk the loss of investment
(b) Shareholders bear the risk of no dividends in the event of losses
(c) Shareholders usually have the right to vote
(d) Dividends are usually given at a set amount in every financial year.

Question: Unless otherwise stated, a preference share is always deemed to be :
(a) Cumulative, participating and non-convertible
(b) Non-cumulative, non-participating and non-convertible
(c) Cumulative, non-participating and non-convertible
(d) Non-cumulative, participating and non-convertible

Question: A company has …………….
(a) Separate Legal Entity
(b) Perpetual Existence
(c) Limited Liability
(d) All of the Above

Question: Shareholders are :
(a) Customers of the Company
(b) Owners of the Company
(c) Creditors of the Company
(d) None of these

Question: Who are the real owners of a company?
(a) Government
(b) Board of Directors
(c) Equity shareholders
(d) Debentureholders

Question: Authorised capital of a Company is divided into 5,00,000 shares of Rs. 10 each. It issued 3,00,000 shares. Public applied for 3,60,000 shares. Amount of issued capital will be :
(a) Rs.30,00,000
(b) Rs.36,00,000
(c) Rs.50,00,000
(d) Rs.6,00,000

Question: A Company invited applications for 1,00,000 shares and it received applications for 1,50,000 shares. Applications for 30,000 shares were rejected and the remaining were allotted shares on prorata basis. How many shares an applicant for 3,000 shares will be allotted :
(a) 2,500 Shares
(b) 3,600 Shares
(c) 4,500 Shares
(d) 2,000 Shares

Question: E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be :
(a) 60 shares; Rs.120
(b) 340 shares; Rs.160
(c) 320 shares, Rs.200
(d) 300 shares; U40 (C.F. Foundation, June 2013)

Question: Using information given in Q. 117, what is the net balance left in Share Forfeiture Account:
(a) Rs. 1,400
(b) Rs. 1,500
(c) Rs.900
(d) Rs. 1,000

Question: P Ltd. forfeited 150 shares of Rs.10 each, issued at a premium of Rs.2, for non-payment of the final call of Rs.3. Out of these, 100 shares were re-issued at Rs. 11 per share. How much amount would be transferred to capital reserve?
(a) Rs.700
(b) Rs.500
(c) Rs. 1,200
(d) Rs.300

Question: XY Limited issued 2,50,000 equity shares of Rs. 10 each at a premium of Rs.1 each payable as Rs.2.5 on application, Rs.4 on allotment and balance on the first and final call. Applications were received for 5,00,000 equity shares but the company allotted to them only 2,50,000 shares. Excess money was applied towards amount due on allotment. Last call on 500 shares was not received and shares were forfeited after due notice. This is a case of:
(a) Over subscription
(b) Pro-rata allotment
(c) Forfeiture of Shares
(d) All of the above

Question: 800 shares of Rs.10 each issued at 30% premium (to be paid on allotment) were forfeited for non-payment of Rs.2 per share on first call and Rs.2 per share on final call. Share Forfeiture Account will be credited with :
(a) Rs.2,400
(b) Rs.4,800
(c) Rs.3,200
(d) Rs.7,200

Question: A Company forfeited 300 shares of Rs.10 each, Rs.8 per share called up, on which X had paid application and allotment money of Rs.6 per share. Share Forfeiture Account will be credited with :
(a) Rs. 600
(b) Rs. 1,800
(c) Rs. 1,200
(d) Rs.2,400

Question: For what purpose securities premium reserve account cannot be utilized?
(a) Amortization of preliminary expenses
(b) Distribution of dividend
(c) Issue of fully paid bonus shares
(d) Buy Back of own shares

Question: 800 shares of Rs.10 each issued at 20% premium were forfeited for non-payment of allotment money of Rs.5 (including premium) and first & final of Rs.3 per share. Share Forfeiture Account will be credited with :
(a) Rs. 1,600
(b) Rs.2,400
(c) Rs.3,200
(d) Rs.4,800

Question: Premium on the issue of shares should be shown :
(a) On the Assets side of balance sheet
(b) On the Equity & Liabilities side of balance sheet
(c) In profit & loss Statement
(d) None of the Above

Question: A Company issued 50,000 shares of Rs.20 each at 5% premium. Rs.10 were payable on application and balance on allotment. What will be the allotment amount?
(a) Rs.5,00,000
(b) Rs.4,75,000
(c) Rs.5,50,000
(d) Rs.5,25,000 

Question: A company cannot issue :
(a) Redeemable Equity Shares
(b) Redeemable Preference Shares
(c) Redeemable Debentures
(d) Fully Convertible Debentures

Question: Equity shares cannot be issued for the purpose of:
(a) Cash Receipts
(b) Purchase of assets
(c) Redemption of debentures
(d) Distribution of dividend

Question: A Company may issue
(a) Equity Shares
(b) Preference Shares
(c) Equity and Preference both shares
(d) None of the Above

Question: In case of private placement of shares, the lock in period is :
(a) 1 Year
(b) 2 Years
(c) 3 Years
(d) None of the above

Question: Authorised Capital of a Company is mentioned in :
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) Statement in lieu of Prospectus

Question. Arrange the following in proper sequence as types of “Share Capital”   
(a) Paid up capital
(b) Issued capital
(a) Subscribed capital
(a) Called up capital   

Question.A company issued 4,000 equity shares of rupees 10 each at par payable as under:     
On application rupees 3 , on allotment rupees 2; on first call rupees 4 and on final call rupees 1 per share. Applicants were received for 16,000 share .  Application for 6,000 shares were rejected and  pro-rata allotment was made to the applicants for 10,000 shares . How much amount will be received in cash on first call,when excess application money is adjusted towards amount due on allotments and calls :
(a) Rupees 6.000
(b) nil
(c) Rupees 16,000
(d) Rupees 10,000

Question.Rajan Limited issued 50,000 shares at a price lower than the nominal value of the share. The shares issued are called:       
(a) Sweat equity shares
(b) Redeemable Preference shares
(c) Equity shares
(d) Bonus shares

Question.A company issued 4000 equity shares of rupees 50 each at par payable as under:         
On application rupees 20%, on allotment 40% ; on first call 10% ; on final call -balance
Applications were received for 10,000 shares . Allotment was made pro-rata . How much amount will be received in cash on allotment?
(a) Rupees 6.000
(b) nil
(c) Rupees 16,000
(d) Rupees 20,000

Question. When nominal (face) value of a share is called up by the company but as some shareholders did not pay the money, the shares are forfeited . The share capital is shown in the balance sheet (notes) of a company under the following heading:               
(a) Subscribed and fully paid up
(b) Subscribed but not fully paid up
(c) Subscribed and called up
(d) Subscribed but not called up

Question.Zen Ltd purchased the sundry assets of M/s Surat Industries for  Rs.28,60,000 payable in fully paid shares of Rs.100 each. State the number of shares issued to vendor when issued at premium of 10%.         
(a)28,000
(b)31,778
(c)28,600
(d)26,000

Question. Which one of the following is not a part of subscribed capital:         
(a) Equity shares issued to vendor
(b) Preference shares of convertible type
(c) Forfeited shares
(d) Bonus shares

Question.The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 each. There were no calls in arrear till the final call was made. The final call made was paid on 97,500 shares. The calls in arrear amounted to Rs.87,500.The final call on share :           
(a) Rs.20
(b) Rs.35
(c) Rs.25
(d) Rs.45

Question. These shares which in addition to the fixed preference dividend, carry a right to participate in the surplus profits, if any, after dividend at a stipulated rate has been paid to the equity share holders are called:           
(a) Participating preference shares
(b) Convertible preference shares
(c) Redeemable preference shares
(d) Cumulative preference shares

Question.T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro rata basis. The amount payable on application is Rs.2. Manoranjan applied for 450 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from him is:         
(a) 150 shares,Rs.375
(b) 375 shares,Rs.150
(c) 400 shares,Rs.100
(d) 300 shares,Rs.300

Question.Zee Ltd issued 15,000 equity shares of Rs.20 each at a premium of Rs.5 payable Rs.5 on application,Rs.10 on allotment (including premium) and the balance on first and final call. The company received applications for 22,500 shares and allotment was made pro rata. Bittoo to whom 1,200 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Dheeraj at par. Assuming that no other bank transactions took place, the bank balance of the company after the above transactions is :           
(a) Rs.6,85,000
(b) Rs.3,60,500
(c) Rs.3,78,000
(d) Rs.6,34,000

Question.A company forfeited 3,000 shares of Rs.10 each(which were issued at par) held by Kishore for nonpayment of allotment money ofRs.5 per share.The called up value per share was Rs.8.On forfeiture, the amount debited to share capital:         
(a) Rs.30,000 
(b) Rs.24,000
(c) Rs.15,000
(d) Rs.6,000

Question. Daisy Limited forfeited 200 shares Rs.10 each who had applied for 500 shares, issued at a premium of 10% for nonpayment of final call of Rs.3 per share. Out of these 100 shares were issued as fully paid up for Rs.15. The profit on reissue is :         
(a) Rs. 700
(b) Rs. 6400
(c) Rs. 300
(d) Rs. 400

Question. Mithas Limited was formed with share capital of Rs. 50,00,000 divided into 50,000 shares of Rs.100 each. 9,000 shares were issued to the vendor as fully paid for purchase consideration of a furniture acquired. 30,000 shares were allotted in payment of cash on which Rs.70 per share was called and paid . State the amount of subscribed capital :         
(a) Rs. 50,00,000
(b) Rs. 30,50,000
(c) Rs. 30,00,000
(d) Rs. 20,00,000

Question. Faltu Limited invited application for 2,00,000 shares of Rs.10 each. These shares were issued at premium of Rs.11 each which was allowed at the time of allotment. All money was called and duly received except on 10,000 shares on which only application money of Rs.3 per share was received.       
The company forfeited all the shares. 7000 of forfeited share where re-issued at Rs.13per share. State the amount of securities premium to be shown under the head -Reserve and surplus.         
(a) Rs.20,00,000
(b) Rs.11,11,000
(c) 8,11,000
(d) Rs.21,11,000

Question. Z limited issued shares of Rs.100 each at a premium of 10%. Mr. Q purchased 500 shares and paid Rs.20 on application but did not pay the allotment money of Rs.30. If the company forfeited his 30% shares, the forfeiture account will be credited by :           
(a) Rs. 4500
(b)Rs. 3500
(c) Rs. 1650
(d) Rs. 3000

Question.  Mahima limited has an authorised capital of Rs. 1,00,00,000 divided into 1,00,000 equity shares of Rs .100 each . If offered 90,000 equity shares Rs.10 each at a premium of Rs.8 .The public applied for 81,000 equity shares. Till 31st March 2018, Rs.17 (including premium) was called . An applicant holding 5000 shares did not pay first call of Rs.2per share. 

As per the above given information:

 ………. is the amount of Share capital to be shown in the balance sheet of the company.     

Question. Out of total face value, liability of a shareholder is limited to …………… value of the share allotted to him.    Called up

Question. Match the following :          
(a) Cumulative Pref. Share                   (a)Repaid after some time
(b) Participating Pref. Share                 (b) converts into equity shares
(c) Redeemable Pref. shares                 (c) Dividend accumulates if  not paid     
(d) Convertible Pref. shares                  (d) Gets share in surplus profit

The correct match is:
(a) a-ii ,b-i, c-iii,  d-iv
(b) a-iii, b-iv, c-i, d-ii
(c) a-iii, b-iv, c-ii ,d-i
(d) a-ii, b-iv, c-iii, d-i

Question. Once, forfeited shares reissued, balance of share forfeiture money will be transferred to:
(a) General Reserve
(b) Capital Reserve
(c) Reserve Capital
(d) Securities Premium Reserve     

Question. A shareholder allotted to whom 9,000 shares of ₹ 10 per share failed to pay first & final of ₹ 2 per share. ₹ 18,000 to be recorded in the books of company with
(a) Dr. to Calls-in Arrears A/c
(b) Dr. to Share Forfeiture
(c) Cr. to Calls-in Arrears A/c
(d) Cr. to Share Forfeiture A/c   

Question. Star Ltd forfeited 1,000 shares of Rs.10 each (which were issued at par )of Jeevan, a share holder of the company, for non payment of allotment money of Rs.4 per share. The called up value per share was Rs.7. On forfeiture, the amount debited to share capital:
(a) Rs.3,000
(b) Rs.7,000
(c) Rs.4,000
(d) Rs.10,000   

Question. Name the head of Capital Clause of Memorandum of Association of a company in which maximum amount of share capital mentioned is called .
(a) Reserve Capital
(b) Subscribed Capital
(c) Authorised Capital
(d) Issued Capital   

Question. 12,000 shares of ₹ 100 each forfeited due to non-payment of allotment of ₹ 40 per share and first & final call of ₹ 30 per share. Out of the forfeited shares, 9,000 shares were reissued at ₹ 80 per share fully paid. Which of the following amount of share forfeiture account will be transferred to Capital Reserve Account?
(a) 90,000
(b) 1,80,000
(c) 3,60,000
(d) 2,70,000     

Question. Shobha Limited was formed with share capital of Rs. 50,00,000 divided into 50,000 shares of Rs.100 each. 8,000 shares were issued to the vendor as fully paid for purchase consideration of a Machinery acquired. 30,000 shares were allotted in payment of cash on which Rs.70 per share was called and paid. State the amount of subscribed capital:
(a) Rs. 50,00,000
(b) Rs. 30,50,000
(c) Rs. 29,00,000
(d) Rs. 20,00,000   

Question. The allowed amount of discount on re-issue of shares will be
(a) @ 10% of issue price
(b) Up to the amount of forfeited money
(c) Could not issue at discount
(d) None of these   

CASE STUDY BASED QUESTIONS :

Read the following statement carefully and give the answer for the questions:

Shine Firework Ltd is authorised to issue shares 5,00,000 of ₹ 100 each. Company raised the capital by issue of 2,00,000 shares through e-IPO. As per the decision of Managing Board of Directors of company, company issued 75,000 shares to their parent company and 40,000 shares issued to existing employees of company as per their choice and option at the below price than the market price.

Question. “Company issued 75,000 shares to their parent company” is an example of .
(a) Public Issue
(b) Private Placement
(c) ESOP
(d) Issue other than cash   

Question. “40,000 shares issued to existing employees of company as per their choice and option at the below price than the market price.” Is an example of
(a) Public Issue
(b) Private Placement
(c) ESOP
(d) Issue other than cash     

Read the following statement carefully and give the answer for the questions:

X Ltd issued 2,00,000 shares of ₹ 100 each. Amount to be paid on Application ₹ 30 per share; on allotment ₹ 40 per share and on first & final call ₹ 30 per share. All money was duly subscribed and paid towards the nominal value of shares except on 9,000 shares who failed to pay allotment and calls money. These shares were forfeited. 5,000 shares were re-issued at ₹ 80 per share fully paid.

Question. Which amount of the following will be shown into the Balance Sheet of the company under the sub-head “Share Capital”?
(a) ₹ 1,96,00,000
(b) ₹ 1,97,20,000
(c) ₹ 2,00,00,000
(d) ₹ 1,97,70,000   

Question. Which of the following amount will be, balance in Share Forfeiture Account?
(a) ₹ 4,00,000
(b) ₹ 1,50,000
(c) ₹ 1,20,000
(d) ₹ 50,000   

Assertion And Reason :

Question. Given below are two statements, one labelled as Assertion the other labelled as Reason (R):
Assertion (A): The forfeited shares may be reissued by the company at par, at premium or at discount.
Reason(R): Reissue of forfeited shares is not an issue of shares but is selling the shares that were issued earlier and were cancelled by the company.
In the context of the above two statements, which of the follow-ing is correct?
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong.   

Question. Given below are two statements, one labelled as Assertion the other labelled as Reason (R): 
Assertion(A): Preferential allotment means allotment of shares at a pre determined price to the identified people who are interested in taking shares in the company.
Reason(R): Employee Stock Option Plan is a category of sweat Equity
In the context of the above two statements, which of the following is correct?
(a) Both (A) and (R) are correct and (R) is the correct reason of (A)
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong.   

Question. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R)
Assertion (A)The part of un-called capital, to be called only in the liquidation of a company is called Reserve Capital.
Reason (R) :It can be used for writing off capital losses.
In the context of the above two statements, which of the following is correct?
(a) is correct, but (R) is wrong.
(b) Both (A) and (R) are correct.
(c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong   

True Or False:

Question.Securities premium received on issue of shares cannot be used for the purpose of buy back of shares.    

Question.According to the below given information the final call per share is Rs.22.    

The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is Rs.100 each. There were no calls in arrear till the final call was made . The final call made was paid on 77,500 shares only . The balance in the calls in arrear amounted to Rs.55,000.

Question. True/False-Share application amount is in the nature of Real account