Question : Puran  Store Ltd., an Unlisted Company, is to redeem 5000,8% Debentures of Rs. 100 each on 30th June 2020. It has a balance of Rs. 10,000 in Debentures Redemption Reserve. It decides to set aside the amount to Debentures Redemption Reserve on 31st March 2020 on which date it has

following Reserves and Surplus:   Rs.
Securities Premium Reserve 25,000
Capital reserve Rs 20,000
General Reserve 30,000; and
Surplus, i.e., Balance in Statement of Profit and Loss 30,000
Balance Rs. 40,000 can be set aside to Debentures Redemption Reserve from:

Option 1: Capital Reserve and General Reserve

Option 2:  Capital Reserve and Securities Premium Reserve

Option 3: General Reserve and Surplus, i.e., Balance in Statement of Profit and Loss

Option 4: Securities Premium Reserve and Surplus, i.e., Balance in Statement of Profit and Loss

Question : ----------- is a fund set up to use for distribution as prizes, say for achievements or contributions to the welfare of society.

Option 1: Prize fund

Option 2: General Reserve

Option 3: Capital Fund

Option 4: None of the above

Question : ----------- is a fund set up to use for distribution as prizes, say for achievements or contributions to the welfare of society.

Option 1: Prize fund

Option 2: General Reserve

Option 3: Capital Fund

Option 4: None of the above

Question : Which of the following statement is correct?
Statement 1: Under offer for sale the company issues a prospectus and invite the general public to purchase shares or debentures.
Statement 2: Under private placement the company sells security to the institutional investors or brokers instead of selling them to general public.
 

Option 1: Both are true 

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.

Question : Right shares are not offered to the existing equity shareholders if :

Option 1: The company in General Meeting has so decided by a special resolution

Option 2: It is decided by an Ordinary Resolution and the same has been approved by the Central Government

Option 3: Both option 1 and 2

Option 4: None of the above