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CUET Accountancy 2025 PYQs26 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 26 May Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 26 May Shift 2

Easy

common

Balance of share forfeiture account is shown in the balance sheet under the sub-head-

Solution

✅ Correct Option: 3

When shares are forfeited due to non-payment of calls, the amount already received on those shares is credited to the Share Forfeiture Account.

This account represents money received from shareholders before forfeiture and forms part of the company's capital. It is not a liability (the company doesn't owe this to anyone), nor is it a loan or a regular reserve that can be freely distributed.

In the Balance Sheet, Share Forfeiture Account is shown under Shareholders' Funds, specifically under the sub-head Share Capital.

The presentation appears as:

Shareholders' Funds:

  • Share Capital: ₹ XXX
  • Add: Forfeited Shares Account: ₹ XXX

This amount will either be:

  • Used to write off any discount when forfeited shares are reissued, or
  • Transferred to Capital Reserve if shares are not reissued

Since it relates to the share capital of the company and represents an accretion to capital, it is logically shown along with Share Capital rather than as a separate reserve or liability.

Correct Answer: Option 3 - Share capital

Related questions:

2025: 4 June Shift 2

200 shares of Rs. 100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs. 60 (including premium) per share. The first and final call of Rs. 20 per share on these shares were not made. The forfeited shares were reissued at Rs. 70 per share as fully paid-up. Capital reserve created after reissue will be:

2026: 20 May Shift 1

Raj Ltd. purchased a machine from Anuj Tech Ltd. for Rs.1,90,000. As per purchase agreement, Rs. 10,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued to Anuj Tech Ltd., if the shares issued at 20% premium.

2026: 19 May Shift 1

Match List-I with List-II

List-IList-II
(A) Issue price of share is higher than its nominal value(I) Pro-rata Allotment
(B) Money not received on first call(II) Securities Premium Reserve
(C) Money of Second & Final Call received with First Call(III) Calls in arrear A/c
(D) Share issued 5000 and Application received for 7,000 shares(IV) Calls in advance A/c

Choose the correct answer from the options given below:

2025: 15 May Shift 2

Where there is no articles of association of its own, which of the following provisions applies as per Table A.

2023: 29 May Shift 2

Select the amount received on Share Allotment Account -

2026: 24 May Shift 1

The equity share capital may be (i) with voting rights; or (ii) with differential rights as to voting, dividend or otherwise in accordance with such rules and subject to such conditions as may be prescribed in the ..................

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