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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

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In a Journal Entry of Forfeiture of Shares, Securities Premium Account may be debited, when :-

Solution

✅ Correct Option: 1

Securities Premium Account is debited during forfeiture only when the premium amount was initially recorded but remains unpaid at the time of forfeiture.

When shares are issued at premium, the Securities Premium Account is credited for the premium amount. If the shareholder fails to pay calls which include this premium, the forfeiture entry must reverse the premium that was initially credited but never actually received.

Analysis of the options:

Option 1 (Correct): Shares issued at premium + calls in arrears include premium

  • Securities Premium Account was credited when shares were allotted
  • Since premium is part of unpaid calls, it needs to be debited to reverse the initial credit entry
  • This correctly reduces the Securities Premium Account for the uncollected premium

Option 2: Shares issued at premium + calls in arrears do NOT include premium

  • Premium has already been collected
  • No need to debit Securities Premium Account as the amount is received

Option 3: Shares issued at par + calls in arrears include premium

  • Contradiction: Shares at par cannot have premium
  • Securities Premium Account doesn't exist

Option 4: Shares issued at par + calls in arrears do NOT include premium

  • No premium involved, hence no Securities Premium Account

The correct answer is Option 1 because Securities Premium Account is debited only when premium was charged initially but remains unpaid (included in calls in arrears).

Related questions:

2025: 30 May Shift 2

Jain and Co. purchased a machine from Young Life Machine Limited for Rs.3,80,000. As per the purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. How many shares are issued if the shares are issued at 20% premium.

2026: 29 May Shift 1

In case of issue of shares, the company has to get minimum subscription within__________ from the date of the issue of the prospectus.

2026: 31 May Shift 1

As per section 68 of The Companies Act, 2013, the company cannot buy their own shares from either of the following source:

2026: 29 May Shift 1

If a company fails to get the minimum subscription of __________ of the issued amount and also fails to return the entire subscription amount within the prescribed time, it shall be liable to pay interest @__________ .

2025: 2 June Shift 2

In what condition the amount is shown under the head of 'Subscribed and Fully Paid up Share Capital' in Balance Sheet of a Company-

2025: 14 May Shift 2

Hari, the holder of 1200 shares paid the amount due on first call @ Rs 2/- per share along with second and final call which became due after 1 month from the due date of first call. What interest will be charged from Hari on calls in arrears:

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