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