SUNIL PANDA - THE EDUCATOR
CRASH COURSE
CLASS XII ACCOUNTANCY
BOARD EXAM 2025
ISSUE OF SHARES
Q.1) The Directors of M ltd. Forfeited 2,000 Equity shares of ₹ 10 each, ₹ 7.5 paid to be forfeited for Non payment of
final call of ₹ 2.5. 1800 of these shares were reissued for ₹ 6 per share fully paid up.
Capital reserve will be
a) 15000
b) 7000
c) 6300
d) 7800
Q.2) X ltd. Forfeited 20 shares of ₹10 each for unpaid their final call of ₹4 per shares. These shares were reissued at a
discount.
calculate the amount of maximum Discount can be given.
a) 120
b) 80
c) 200
d) Zero
Q.3) Apaar Ltd forfeited 4,000 shares of ₹20 each, fully called up, on which only application money of ₹6 has been
paid. Out of these 2,000 shares were reissued and ₹8,000 has been transferred to capital reserve. Calculate the rate at
which these shares were reissued.
a) ₹20 Per share
b) ₹18 Per share
c) ₹22 Per share
d) ₹8 Per share
Q.4) ZEE Ltd, issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares
and pro- rata allotment was made to All the Applicants. If sunney has been allotted 40 shares, how many shares he
must have applied for?
a) 40
b) 60
c) 48
d) 52
Q.5) Vishnu Ltd. forfeited 20 shares of ₹10 each, ₹8 called up, on which John had paid application and allotment
money of ₹5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹6 per share. What is the
balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?
a) ₹0
b) ₹5
c) ₹25
d) ₹100
Q.6) X ltd. Forfeited 1,000 shares of Rs 10 each for non-payment of final call of Rs 3 each. After reissue of 600 of these
shares, ₹ 3000 were transferred to Capital reserve. Share were reissued for:
a) Rs 1200
b) Rs 4800
c) Rs 4000
d) Rs 3600
Q.7) X ltd. Forfeited 600 shares of Mohan of ₹10 each. For non payment of Allotment money of ₹3 per share and final
call money of ₹2 per share Mohan applied for 800 shares. His shares were forfeited and reissued for ₹9 per share.
Capital reserve will be
a) 2400
b) 3400
c) 2000
d) 4000
Q.8) A company forfeited 400 shares of ₹10 each, ₹8 per share called up for non-payment of first call of ₹2 per share.
On forfeiture of these shares, ‘Share Capital’ account will be debited with:
a) ₹4,000
b) ₹800
c) ₹3,200
d) ₹2,000
Q.9) Xyle Ltd. Forfeited 700 shares of ₹10 each issued at a premium of 10% for non-payment of allotment money of ₹5
per share (including premium) and first and final call of ₹3 per share. On forfeiture of these shares, ‘Shares Forfeiture
Account’ will be credited with:
a) ₹7,000
b) ₹1,400
c) ₹4,900
d) ₹2,100
Q.10) Zinki Limited forfeited a shares of ₹100 issued at a premium of 20% for non payment of first call of ₹30 per share
and final call of ₹10 per share. The minimum price at which this share can be reissued is:
a) ₹40
b) ₹60
c) ₹20
d) ₹100
Q.11) Raja Ltd. purchased machinery for ₹25,00,000 from Sharma Ltd. The payment to Sharma Ltd. was made by issue
of equity shares of ₹10 each at a premium of 25%. The amount to be credited to the ‘Securities Premium Account’ on
issue of equity shares will be:
a) ₹25,000
b) ₹50,000
c) ₹62,500
d) ₹5,00,000
Q.12) BB Ltd. forfeited 4,000 shares of ₹10 each for non-payment of final call of ₹5 per share. The forfeited amount
was ₹20,000. The minimum amount per share at which these shares can be re-issued will be:
a) ₹6
b) ₹7
c) ₹5
d) ₹4
Q.13) 2,000 shares allotted to Ms. Regal, on which ₹ 80 each called up and ₹ 50 paid were forfeited and reissued for ₹
70 each as ₹ 90 paid up. Amount transferred to capital reserve A/c is
a) ₹ 1,00,000
b) ₹ 60,000
c) ₹ 40,000
d) ₹ 20,000
Q.14) A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) has been
paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital
Reserve. How many shares were re-issued?
a) 3,000 shares
b) 1,000 shares
c) 2,000 shares
d) 1,500 shares
Q.15) M Ltd. forfeited 5,000 equity shares of ₹10 each issued at a premium of 10% for non-payment of final all of ₹2
per share. The minimum amount at which these shares can be reissued as fully paid up will be:
a) ₹5,000
b) ₹10,000
c) ₹12,000
d) ₹50,000
Q.16) A company forfeited 6,000 shares of ₹ 10 each, on which only application money of ₹ 3 has been paid. 4,000 of
these shares were re-issued at ₹ 12 per share as fully paid up. Amount of Capital Reserve will be _______.
a) ₹ 18,000
b) ₹ 12,000
c) ₹ 30,000
d) ₹ 24,000
Q.17) A share of ₹10 each, issued at ₹4 premium out of which ₹7 (including ₹1 premium) was called up and paid up.
The uncalled Capital will be_____.
a) ₹7 per share
b) ₹4 per share
c) ₹8 per share
d) ₹3 per share
Q.18) Attire Ltd, issued a prospectus inviting applications for 12,000 shares of ₹10 each payable ₹3 on application, ₹5
on allotment and balance on call. Public had applied for certain number of shares and application money was received.
Which of the following application money, if received restricts the company to proceed with the allotment of shares,
as per SEBI guidelines?
a) ₹36,000
b) ₹45,000
c) ₹30,000
d) ₹32,400
Q.19) If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000
shares were re-issued @₹11 per share as fully paid up, then what is the amount of maximum possible discount that
company can allow at the time of re-issue of the remaining 3,000 shares?
a) ₹28,000
b) ₹21,000
c) ₹9,000
d) ₹16,000
Q.20) As per Companies Act, 2013 Securities Premium Balance can be utilized for which of the following purpose?
a) Issuing bonus to existing shareholders to convert partly paid up into fully paid-up bonus shares.
b) Providing for Premium payable on Redemption of Debentures
c) Writing off all Capitalised Expenditure
d) Buy Back of Debentures
Q.21) X Ltd. issued 10,000 equity shares of ₹10 each at a par amount payable as follow
Application ₹5
Allotment ₹3
Final call ₹2
All the amount duly received except the final call money of 4000 shares. These shares were forfeited and reissued for
₹12 per share.
Answer the following
a) Maximum permissible discount for 4000 shares at the time of reissue?
b) Balance in share forfeited account?
c) Minimum price of share reissued?
d) Capital reserve?
Q.22) Rajan Ltd. purchased assets from Geeta & Co. for ₹5,00,000. A sum of ₹1,00,000 was paid by means of a bank
draft and for the balance due Rajan Ltd. issued Equity Shares of ₹10 each at a premium of 25%. Journalize the above
transactions in the books of the company.
Q.23) X Ltd. Purchased a Building from Y Ltd. Consideration paid as follow issued Equity shares of ₹1,00,000 face value
of ₹10 each at Par 5,000 9% Preference shares of 100 each at 10% Premium s cheque ₹2,00,000 and 3 months bills
payable of ₹47,000.
find out the value of Building & pass the necessary journal entries.
Q.24) Tata Ltd. forfeited 4000 shares of ₹10 each issued at 20% premium for non-payment of first call of ₹2 per share.
Final call of 3 per share was not yet made. Out of these 3000 shares were reissued for ₹9 per share fully paid up. Pass
journal entries for forfeiture and reissue of shares.
Q.25) Pass necessary journal entries for the forfeiture and reissue of shares in the following cases:
(i) CC Ltd. forfeited 10,000 shares of 10 each, 8 called up, for non-payment of allotment money of 3 per share and first
call of 3 per share. Out of these, 2000 shares were reissued for 7 per share, 8 paid up.
(ii) GG Ltd. forfeited 2000 shares of 10 each fully called up, issued at a premium of 10% on which only application
money of 3 per share was received. Out of these, 500 shares were re-issued at 11 per share, fully paid up.
Q.26) Pass entries for forfeiture and re-issue in both the following cases.
a) Kamla Ltd. forfeited 7,500 shares of Sumit, who had applied for 10,000 shares for nonpayment of allotment
money of ₹ 5 per share and first and final call of ₹ 2 per share. Only application money of ₹ 3 was paid by him.
Out of these 5,000 shares were re-issued @ ₹9 per share as fully paid.
a) KATI Ltd. forfeited 4,000 shares of ₹ 10 each (issued at ₹ 3 premium) for non-payment of first call of ₹ 2 per
share. Final call of ₹ 3 per share was not yet made. Out of these 3,000 shares were re-issued at ₹ 11 per share
as fully paid.
Q.27) Lilly Ltd. forfeited 100 shares of ₹10 each issued at10% premium (₹8 called up) on which a shareholder did not
pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60 shares were reissued to Ram as fully paid
for ₹8 per share and 20 shares to Suraj as fully paid up @ ₹12 per share at different intervals of time. Prepare Share
Forfeiture account.
Q.28) Alfino Ltd. was registered with an authorized shares capital of ₹80,00,000 divided into equity share of ₹100 each,
company offered 50,000 shares for public at 20% premium. The share amount was payable as follow:
On application ₹40 per share
On allotment ₹80 per share (including premium)
Application received for 80,000 shares pro rata allotment was made in ratio of 3:2 and rest application were rejected
All the money on allotment received except Miss Pooja holding 5000 shares her share immediately forfeited and out of
these 4000 shares reissued for ₹80 per share fully paid up.
Pass the necessary journal entries in the books of Alfino Ltd.
Q.29) Sankalp Ltd. was incorporated with an Authorized shares capital of ₹1,00,00,000 divided into 8,00,000 equity
shares of ₹10 each and 2,00,000 11% Preference shares of ₹10 each. Company issued 5,00,000 equity shares for public
subscription at 10% premium. Payable ₹3 per share on application; ₹6 per share on allotment (including premium) and
balance on 1st & final call. Public had applied for 8,00,000 shares. All the shares allotted on pro-rata basis. All the
amount duly receipts except allotment money on 10,000 shares hold by Ramesh another shareholder Suresh paid his
call money along with allotment he has 15000 shares. Show the presentation of share capital in company balance
sheet as per schedule III of Indian companies act, 2013.
Q.30) Atishyokti Ltd. company was registered with an authorized capital of ₹ 20,00,000 divided into 2,00,000 Equity
Shares of ₹ 10 each, payable ₹ 3 on application, ₹ 6 on allotment (including ₹ 1 premium) and balance on call. The
company offered 80,000 shares for public subscription. All the money has been duly called and received except
allotment and call money on 5,000 shares held by Manish and call money on 4,000 shares held by Alok. Manish’s
shares were forfeited and out of these 3,000 shares were re-issued ₹ 9 per share as fully paid up.
Show share capital in the books of the company. Also prepare notes to accounts.
