1221. Profits on reissue of forfeited shares should be transferred to :
A. Shares Forfeited account *
B. Capital reserve account
C. Profit and loss account
D. Profit and loss appropriation account
1222. with regard to issue of share certificates the auditor should refer to section :
A. 110
B. 113 *
C. 114
D. 109
1223. Increase in share capital is permitted by :
A. Memorandum of association
B. Articles of association *
C. Court
D. Comapanies ordinance 1984
1224. For sub-division of shares in smaller amount, the auditor should refer to :
A. Court’s sanction *
B. Director’s Minute book
C. Shareholder’s Minute book
D. Companies ordinance 1984
1225. Share capital can be increased by :
A. Increasing face value of shares
B. Issuing shares at premium
C. Issue of fresh shares *
D. None of the above
1226. For reduction in share capital, the auditor should see that :
A. The Memorandum of Association grants permission.
B. It is permitted by articles of association
C. There is prior sanction of federal government
D. The court has already imposed sanctions *
1227. Divisible profits should not include :
A. Interest on capital
B. Depreciation
C. Capital
D. None of the above
1228. dividends cannot be paid out of :
A. Capital profits *
B. Capital receipts
C. Revenue receipts
D. None of the above
1229. Issue of payment of dividend out of capital was raised in :
A. First V black white publishing co
B. Lubbock v. the South American British bank *
C. Mckesson and Robbins case
D. London and general bank case
1230. Capital profits :
A. Can be paid by way of dividends
B. Cannot be paid by way of dividends
C. Can be paid by way of dividend under certain condition *
D. None of the above