Company Accounts

Share Capital

Medium

MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is :

Rs. 3,000

Rs. 800

Rs. 1,200

Rs. 1,000

✅ Correct Option: 2

Forfeiture amount per share = 3 (only application received). For 400 reissued shares, forfeited balance = 400 * 3 = 1,200. Discount on reissue = (10 - 9) * 400 = 400. Gain transferred to Capital Reserve = 1,200 - 400 = 800.

2025: 3 June Shift 2

What will be the journal entries when a call is due and the amount of the same is received?

2025: 22 May Shift 1

In which order, the share capital of the Company is shown on the balance sheet:

(A) Authorized Capital

(B) Subscribed and fully paid up Capital

(D) Subscribed but not fully paid up

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Under Subscription	(I) Issue of Shares at an amount more than the nominal or par value of shares.
(B) Issue of Shares at a Premium	(II) It is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Over Subscription	(III) The amount so received from the shareholders when shareholders pay a part or the whole of the amount of the calls not yet made.
(D) Calls in Advance	(IV) when applications for more shares of a company are received than the number offered to the public for subscription.

Choose the correct answer from the options given below:

2026: 24 May Shift 1

Where there is no articles of association of its own, select the correct provision of Table A of Companies Act.

2023: 29 May Shift 2

Select the amount received on Share Allotment Account -

2025: 30 May Shift 1

The balance of the share forfeiture account is shown in the balance sheet under the item :

MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is :

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)