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CUET Accountancy 2025 PYQs27 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 27 May Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 27 May Shift 2

Medium

common

Arrange the following events (in relation to the issue of shares) in a logical order.

(A) Transfer to capital reserve.

(B) Forfeiture of share.

(C) Calls in arrears.

(D) Re issue of share.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

The logical sequence of events related to share issue follows the natural progression of default and subsequent actions:

Calls in arrears (C) occurs first when a shareholder fails to pay the amount due on shares (application, allotment, or call money) within the specified time.

Forfeiture of share (B) follows next when the company, after giving proper notice to the defaulting shareholder, forfeits the shares due to non-payment of calls in arrears.

Re-issue of share (D) happens after forfeiture when the company sells the forfeited shares to a new shareholder. These shares can be re-issued at par, premium, or even at a discount (but not below the amount originally forfeited).

Transfer to capital reserve (A) occurs last. When forfeited shares are re-issued, the amount forfeited (either fully or partially) gets transferred to Capital Reserve Account. The formula is:

Amount transferred to Capital Reserve = Amount originally forfeited - Discount allowed on re-issue (if any)

For example, if shares of ₹10 each with ₹7 paid up were forfeited and re-issued at ₹8 per share, then ₹3 was forfeited. Since re-issue price is ₹8 and ₹7 was already paid, effectively ₹1 discount is given. So, ₹2 (₹3 - ₹1) goes to Capital Reserve.

Therefore, the correct sequence is: (C) → (B) → (D) → (A)

Related questions:

2025: 3 June Shift 1

Match List-I with List-II

List–IList–II
(A) Calls in Arrears(I) Shares are taken back by the company as shareholders failed to pay one or more installments, viz. allotment money and/or call money.
(B) Calls in Advance(II) This is a situation where the number of shares applied for is less than the number for which applications have been invited for subscription.
(C) Forfeiture of Shares(III) This is the amount which any shareholder fails to pay on allotment or on any of the calls.
(D) Under Subscription(IV) Table 'F' of the Companies Act provides for the payment of interest on this call at a rate not exceeding 12% per annum.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

The directors of Roly Paper Limited decided that 400 equity shares of Rs.100 each be forfeited for non-payment of the second and final call of Rs.30 per share. Out of these, 150 shares were re-issued at Rs.50 per share to Mohita. Necessary journal entry for Profit on reissue forfeited shares transferred to capital reserve will be?

2025: 29 May Shift 2

The number of shares to be issued to a vendor for consideration other than cash is calculated as follows:

2023: 28 May Shift 1

Find the correct sequence of procedure of issue of shares :

(A) Receipt of Applications

(B) Issue of prospectus

(C) Allotment of Shares

(D) Making call money due

(E) Receiving Call money

Choose the correct answer from the options given below :

2026: 31 May Shift 1

In the case of a One-Person Company, as per Rule 3 of the Companies (Incorporation) Rules, 2014, which of the following statement is not true?

2026: 23 May Shift 2

JK Limited purchased building from Sumit Ltd. for Rs.6,60,000 and the payment is to be made by the issue of shares of Rs.100 each at a premium of Rs.20. The number of shares to be issued to Sumit Ltd. will be:

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