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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

Easy

common

When a company issues shares at a premium, the company can collect Securities Premium along with the :-

Solution

✅ Correct Option: 4

When shares are issued at a premium (issue price > face value), the securities premium can be collected at any stage during the share issuance process.

The share issuance involves three stages:

  • Application stage
  • Allotment stage
  • Call stage(s)

The company has complete flexibility to decide when to collect the premium amount. The Board of Directors specifies this in the prospectus.

For example: If a company issues shares of ₹10 each at ₹15 (premium of ₹5), the collection can be structured as:

  • ₹5 on application (including ₹2 premium)
  • ₹5 on allotment (including ₹2 premium)
  • ₹5 on first call (including ₹1 premium)

Or the entire premium could be collected with application money alone, or allotment money alone, or spread across different calls.

The accounting treatment requires that Securities Premium collected at any stage must be credited to Securities Premium Reserve Account (not Share Capital Account), as per the Companies Act, 2013.

Therefore, the securities premium can be collected along with application money, allotment money, or call money - making Option 4: Any of these the correct answer.

Related questions:

2022: 16 July Shift 2

Amount of Securities Premium Reserve to be debited at the time of forfeiture of shares will be

2026: 21 May Shift 2

At the time of forfeiture of shares, the company

2023: 11 June Shift 3

Arrange the following steps in correct sequence with regard to Shares of a company.

(A) Making Calls

(B) Forfeiture of Shares

(C) Issue of Prospectus

(D) Calls in Arrears

(E) Reissue of Shares

Choose the correct answer from the options given below :

2026: 13 May Shift 1

Aryan Ltd took over assets worth Rs. 30,00,000 and liabilities of Rs. 9,00,000 for a purchase consideration of Rs. 36,00,000, which was paid as follows: For Rs. 6,00,000 bills were accepted and remaining was paid by issuing shares of Rs 100 each at a premium of 25 %. Find the amount which will be credited to securities premium account?

2026: 12 May Shift 1

On the basis of liability of its members, the company cannot be classified into which of the following category:

2026: 13 May Shift 1

Select the correct statements related to shares and share capital :

(A) Authorized Share Capital and Nominal Share Capital are different from each other.

(B) Equity shares cannot be redeemed during the lifetime of the company.

(C) Preference shares are not the real owner of the company.

(D) Equity shares cannot be issued to the public at a discount.

Choose the correct statements from the options given below:

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