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CUET Accountancy 2025 PYQs24 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 24 May Shift 1

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 24 May Shift 1

Medium

common

A share having a face value of Rs.12, on which Rs. 10 is called-up and Rs. 8 is paid, is forfeited. State the amount with which the Share Capital account will be debited

Solution

✅ Correct Option: 2

When shares are forfeited, the Share Capital Account is debited with the called-up amount (not face value or paid-up amount).

Given information:

  • Face value = Rs. 12
  • Called-up = Rs. 10
  • Paid-up = Rs. 8
  • Calls-in-Arrears = Rs. 10 - Rs. 8 = Rs. 2

The journal entry for forfeiture would be:

AccountDebit (Rs.)Credit (Rs.)
Share Capital A/c10
To Share Forfeiture A/c8
To Calls-in-Arrears A/c2

The Share Capital Account represents the liability of the company towards shareholders for the amount called. Upon forfeiture, this liability ceases for the called-up amount only (Rs. 10), not the entire face value (Rs. 12), since the remaining Rs. 2 of face value was never called up and hence no liability existed for it.

Answer: Rs. 10

Related questions:

2025: 13 May Shift 2

Which statements are correct-

(A) A company's shares are generally transferable.

(B) Shareholders of a company are liable for the acts of the company.

(C) The director of a company must be a shareholder.

(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

2025: 15 May Shift 1

On Forfeiture of 500 shares for non-payment of call money, what amount will be credited to Shares Forfeiture Account?

2025: 16 May Shift 1

Arrnge the following in proper order:

(A) Issued Capital

(B) Subscribed and fully paid

(C) Subscribed and not fully paid

(D) Authorised capital

Choose the correct answer from the options given below:

2025: 31 May Shift 1

Jindal and Company purchased a machine from High Life Machine Limited for Rs.3,80,000. As per purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued, if they are issued at par:

2025: 29 May Shift 2

The account which is not used in journal entry of the forfeiture of shares is:

2025: 27 May Shift 1

Match List-I with List-II

List-IList-II
(A) Separate Legal Entity(I) A company being a legal person can enter into contracts and can enforce the contractual rights against others.
(B) Perpetual Succession(II) It can hold and deal with any type of property, It can enter into contracts and even open a bank account in its own name.
(C) Common Seal(III) The company being an artificial person created by law continues to exist irrespective of the changes in its membership.
(D) May Sue or be Sued:(IV) The company being an artificial person, cannot sign its name by itself.

Choose the correct answer from the options given below:

  1. (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
  2. (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
  3. (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
  4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

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