If all the forfeited shares are reissued, the balance, if any, left in the Forfeited Shares Account is transferred to:
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- General Reserve Account
- Securities Premium Account
- Capital Reserve Account
- Statement of Profit and Loss
The Correct Option is C
Solution and Explanation
Top Questions on Accounting for Share Capital
- Altima Ltd. invited applications for 2,00,000 equity shares of ₹ 10 at a premium of ₹ 4 per share. Amount payable:
On application and allotment – ₹ 7 (incl. ₹ 1 premium)
On first and final call – Balance.
Applications received for 2,40,000 shares. 30,000 rejected. Manvi allotted 4,000 shares failed to pay first and final call. Her shares were forfeited. These were reissued at ₹ 4 per share fully paid-up.
Pass journal entries in the books of Altima Ltd.- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
PR Ltd. forfeited 10,000 equity shares of ₹10 each, issued at a premium of ₹4 per share, for non-payment of the first call of ₹3 per share. The second and final call of ₹2 per share had not yet been made.
These forfeited shares were later reissued at a discount of ₹1 per share, fully paid-up.
Pass necessary journal entries for the forfeiture and reissue of shares in the books of PR Ltd. Also prepare the Share Forfeiture Account.- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
Devi and Anupam were partners in a firm. Their fixed capitals were ₹9,00,000 and ₹6,00,000 respectively on 1st April, 2023. The partnership deed provided for the following:
(i) Interest on capital @ 12% p.a.
(ii) Interest on drawings @ 15% p.a.
On 1st May, 2023, Devi introduced additional capital of ₹1,00,000 and on 1st June, 2023, Anupam withdrew ₹2,00,000 from her capital.
Devi withdrew ₹4,000 per month for her personal use and Anupam withdrew ₹2,000 per month for her personal use.
The net divisible profit of the firm for the year ended 31st March, 2024 after allowing interest on capital and charging interest on drawings was ₹3,00,000.
Prepare Current Accounts of the partners.- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- The following information has been obtained from the Balance Sheet of Jay Ltd. as at 31st March, 2024:
- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
- Poonam Ltd. forfeited 2,00,000 equity shares of ₹10 each issued at a premium of ₹5 per share for the non-payment of the first call of ₹2 per share. The second and final call of ₹3 per share was not yet made. The forfeited shares were reissued at a discount of ₹1 per share fully paid up. Pass necessary journal entries for the above transactions in the books of Poonam Ltd. Also prepare Share Forfeiture Account.
- CBSE CLASS XII - 2025
- Accountancy
- Accounting for Share Capital
Questions Asked in CBSE CLASS XII exam
- Two wires made of the same material have the same length \( l \) but different cross-sectional areas \( A_1 \) and \( A_2 \). They are connected together with a cell of voltage \( V \). Find the ratio of the drift velocities of free electrons in the two wires when they are joined in: (i) series, and (ii) parallel.
- CBSE CLASS XII - 2025
- Current electricity
- Two small solid metal balls A and B of radii \(R\) and \(2R\) having charge densities 2 and 3 respectively are kept far apart. Find the charge densities on A and B after they are connected by a conducting wire.
- CBSE CLASS XII - 2025
- Electrostatics
- (ii) Account for the following:
(I) We cannot determine the order of a reaction by taking into consideration the balanced chemical equation.
(II) A bimolecular reaction may become kinetically first order under a specified condition.- CBSE CLASS XII - 2025
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- Two batteries of emfs 3V and 6V and internal resistances 0.2 and 0.4 are connected in parallel. This combination is connected to a 4 resistor. Find:
(i) the equivalent emf of the combination
(ii) the equivalent internal resistance of the combination
(iii) the current drawn from the combination- CBSE CLASS XII - 2025
- Power in Electric Circuits
- A battery of emf \( E \) and internal resistance \( r \) is connected to a rheostat. When a current of 2A is drawn from the battery, the potential difference across the rheostat is 5V. The potential difference becomes 4V when a current of 4A is drawn from the battery. Calculate the value of \( E \) and \( r \).
- CBSE CLASS XII - 2025
- Current electricity