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CUET Accountancy 2025 PYQs29 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 29 May Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 29 May Shift 2

Medium

common

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

Solution

✅ Correct Option: 2

When shares are forfeited due to non-payment of calls, the following journal entry is recorded:

Journal Entry for Forfeiture:

Share Capital A/c        Dr.

Securities Premium A/c        Dr. (if any premium was collected earlier)

       To Calls in Arrears A/c

       To Share Forfeiture A/c

Accounts involved in forfeiture:

  • Share Capital Account is debited to cancel the nominal value of shares forfeited
  • Calls in Arrears Account is credited to write off the unpaid amount
  • Securities Premium Account is debited if premium was collected earlier on these shares (premium needs to be cancelled on forfeiture)
  • Share Forfeiture Account is credited with the amount actually forfeited (amount paid - calls in arrears)

Capital Reserve Account is used only at the time of reissue of forfeited shares, not during forfeiture. When forfeited shares are reissued, any profit on reissue (balance in Share Forfeiture Account after adjusting discount on reissue) is transferred to Capital Reserve Account.

The correct answer is Option 2: Capital Reserve Account

Related questions:

2026: 23 May Shift 2

Select the correct statements with regard to accounting for Share Capital from the following:

A. Provisions of 'Table F' authorise the directors to forfeit the shares.

B. The maximum number of members in a private company is 200.

C. The minimum subscription of capital can not be less than 10% of issued capital.

D. Subscribed capital is also called nominal capital.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

__________ is that portion of the subscribed capital which has not been demanded by the company. The company may collect this amount any time when it needs further funds :-

2025: 24 May Shift 1

Disclosure of shares (specifying the number of shares held) in a company is required for each shareholder holding _________ shares.

2022: 20 July Shift 1

PQR Ltd. issued 40,000 Equity shares of Rs. 10 each at par payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,10,000 shares. Applications for 20,000 shares were refused and allotment was made prorata to remaining applicants. Amount received on allotment is :

2022: 23 Aug Shift 2

Securities Premium Reserve as per section 52(2) of the companies Act 2013 can be used :

(A) To write-off preliminary expenses of the company

(B) To issue fully paid bonus shares to the extent not exceeding unissued share capital of the company

(C) To pay premium on the redemption of preference shares or debentures

(D) To write off discount allowed on the goods sold on credit

Choose the correct answer from the options given below :

2026: 11 May Shift 2

A private company is one which by its articles of association:

A. Limits the number of its members to 200 (excluding its employees);

B. Limits the number of its members to 200 (including its employees);

C. Restricts the right to transfer its shares;

D. Must have at least 2 persons, except in case of one person company;

Choose the correct answer from the options given below:

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