The amount of ‘Calls in Arrears’ disclosed in ‘Notes to Accounts’ will be :
- 4,000
- 16,000
- Nil
- 20,000
The Correct Option is A
Solution and Explanation
The amount of ‘Calls in Arrears’ disclosed in ‘Notes to Accounts’:
Atishay did not pay the final call of ₹2 per share on 2,000 shares.
Calculation:
Calls in Arrears = 2,000 shares × ₹2 = ₹4,000
Answer: (A) ₹4,000
Number of shares of PL Ltd. after forfeiture will be :
- 98,000
- 88,000
- 82,000
- 80,000
The Correct Option is D
Solution and Explanation
Number of shares of PL Ltd. after forfeiture:
Total shares allotted = 82,000
Shares forfeited (Atishay’s 2,000 shares) are no longer part of subscribed capital.
Calculation:
82,000 − 2,000 = 80,000 shares
Answer: (D) 80,000
Amount disclosed under ‘Share Forfeiture Account’ will be
- 16,000
- 4,000
- 20,000
- Nil
The Correct Option is B
Solution and Explanation
Amount disclosed under ‘Share Forfeiture Account’:
Atishay paid all money except final call of ₹2 per share. Hence, ₹8 per share was paid.
Calculation:
Share Forfeiture = 2,000 × ₹8 = ₹16,000
However, this is the total amount paid. But since only paid-up amount (excluding unpaid ₹4,000) is forfeited:
Forfeited amount = ₹4,000 (This is what will be shown in the Share Forfeiture Account)
Answer: (B) ₹4,000
Amount under ‘Issued Capital’ in Notes to Accounts will be :
- 10,00,000
- 9,00,000
- 8,20,000
- 8,00,000
The Correct Option is B
Solution and Explanation
Amount under ‘Issued Capital’ in Notes to Accounts:
PL Ltd. offered = 90,000 shares of ₹10 each
Issued Capital = 90,000 × ₹10 = ₹9,00,000
Answer: (B) ₹9,00,000
‘Share Forfeiture Account’ will be shown in Notes to Accounts under :
- Authorised Capital
- Issued Capital
- Subscribed Capital
- Will not be shown in Notes to Accounts
The Correct Option is C
Solution and Explanation
‘Share Forfeiture Account’ will be shown in Notes to Accounts under:
It is related to forfeited subscribed shares, so:
Answer: (C) Subscribed Capital
Share Capital in balance sheet of PL Ltd. will be :
- 8,00,000
- 8,16,000
- 9,16,000
- 7,90,000
The Correct Option is A
Solution and Explanation
Share Capital in balance sheet of PL Ltd. will be:
After forfeiture, shares left = 80,000
Paid-up value = ₹10 per share (but Atishay’s shares unpaid ₹2 were not received)
Total amount received from 80,000 fully paid-up shares = 80,000 × ₹10 = ₹8,00,000
Answer: (A) ₹8,00,000
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.
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On Allotment – ₹ 25 per share
On First and final call – Balance
Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited. Pass necessary journal entries in the books of Sona Ltd. for the above transactions.- CBSE CLASS XII - 2025
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(i) Macil Ltd. forfeited 3,000 shares of ₹ 100 each issued at 20% premium for non-payment of allotment ₹ 30/share and 1st call ₹ 40/share (incl. premium ₹ 10). 2nd and final call of ₹ 30 not yet called. Out of these, 2,000 were reissued at ₹ 80 each fully paid up for ₹ 90/share.
(ii) Avian Ltd. forfeited 10,000 shares of ₹ 10 each. First call of ₹ 4 not received, second and final call of ₹ 1 not yet called. 4,000 shares reissued to Ajay at ₹ 9 fully paid.- CBSE CLASS XII - 2025
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- Jeeta Ltd. forfeited 300 shares of \(₹100\) each for the non-payment of final call of \(₹10\) per share. The amount credited to share forfeiture account will be :
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- CBSE CLASS XII - 2025
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A carpenter needs to make a wooden cuboidal box, closed from all sides, which has a square base and fixed volume. Since he is short of the paint required to paint the box on completion, he wants the surface area to be minimum.
On the basis of the above information, answer the following questions :
Find a relation between \( x \) and \( y \) such that the surface area \( S \) is minimum.- CBSE CLASS XII - 2025
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