1231. Capital profits imply profits earned :

A. Through business transactions
B. From Capital
C. From sale of fixed assets *
D. From sale of current assets

1232. The auditor should ensure that the allotment of shares is made within:

A. 100 Days of issue of prospectus
B. 120 Days of issue of prospectus
C. 150 days of issue of prospectus
D. None of the above *

1233. While checking allotments auditor should see the amount :

A. Amount received equal to estimated fixed capital *
B. Amount received equal to estimated working capital
C. Necessary for purchase of land and building has been received
D. None of the above

1234. Auditor should see the return of allotment has be sent to registrar within :

A. One month *
B. Two Months
C. Three Months
D. Four Months

1235. Application money should not be with drawn unless :

A. Allotment is made
B. Cash book has been prepared
C. Certificate to commence business obtained *
D. Certificate to commence business obtained

1236. Shares issued for consideration other cash should be vouched with the help of :

A. Director’s Minute book
B. Shareholder’s Minute book
C. Contract with the party concerned *
D. Cash book

1237. A company can issue redeemable preference shares , If authorised by :

A. Memorandum of association
B. Articles of Association *
C. Companies ordinance 1984
D. None of the above

1238. Auditor should see that amount received for premium on issue of shares should be shown on :

A. Subscribed capital
B. Capital reserve fund
C. Share premium account *
D. Paid-up capital account

1239. Share premium account should be shown in the balance sheet under :

A. Paid up capital
B. Subscribed capital
C. Reserves and surplus *
D. Reserved Capital

1240. Amount of share premium may be utilised for :

A. Payment of dividend
B. Writing off of preliminary expenses *
C. Routine expenses
D. Purchase of fixed assets