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CUET Accountancy 2025 PYQs4 June Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 4 June Shift 2

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 4 June Shift 2

Medium

common

Shares except ESOP can be issued:

(A) at Premium

(B) at Par

(C) for other than cash

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Under the Companies Act, 2013, shares (excluding ESOP/Sweat Equity Shares) can be issued in the following ways:

At Premium (A): A company can issue shares at a price higher than the face value. The excess amount over face value is credited to Securities Premium Reserve.

Example: If face value is ₹10 and shares are issued at ₹15, then ₹5 per share is the premium.

At Par (B): Shares can be issued at their face value without any premium or discount.

Example: Shares with face value of ₹10 issued at ₹10.

For consideration other than cash (C): Shares can be issued as consideration for:

  • Purchase of assets from vendors
  • Services rendered by promoters
  • Acquisition of business
  • Conversion of debentures/loans into equity

The restriction on discount applies to regular equity shares. As per Section 53 of the Companies Act, 2013, a company cannot issue shares at a discount except in the case of sweat equity shares (which includes ESOP). Since the question specifically excludes ESOP, all three methods are permissible for other shares.

Correct Option: 3 → (A), (B), and (C)

Related questions:

2025: 27 May Shift 2

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is :-

2026: 21 May Shift 1

A holds 300 shares of Rs.10 each on which he has paid Re.1 per share on application. B holds 300 shares of Rs.10 each on which he has paid Re.1 on application and Rs.2 on allotment. C holds 300 shares of Rs.10 each, who has paid Re.1 on applications, Rs.2 on allotment and Rs.3 on first call. They all failed to pay their arrears and the second call of Rs.4 per share as well. All the shares of A, B and C were forfeited and subsequently reissued at Rs.11 per share as fully paid-up. The journal entries for the reissue of shares and transfer to capital reserve would be:

2025: 27 May Shift 1

Match List-I with List-II

List-IList-II
(A) Interest on calls in arrears(I) Preference Shares
(B) Interest on calls in advance(II) OPC
(C) Sec.2(62) of The Companies Act, 2013 defines(III) 12%
(D) Sec.43 of The Companies Act, 2013 defines(IV) 10%

Choose the correct answer from the options given below:

  1. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)
  2. (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
  3. (A) - (II), (B) - (I), (C) - (IV), (D) - (III)
  4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

2022: 23 Aug Shift 2

All of them are shown under the sub-heading 'Reserve and Surplus' except :

2026: 13 May Shift 1

Taxman Ltd had allotted 40,000 equity shares to the applicant of 48,000 shares on pro rata basis. The amount payable on application is Rs. 4. Manorama applied for 450 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from her are:

2022: 20 Aug Shift 2

The Directors of Tivoli Plastics Ltd. resolved that 200 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 reissued at Rs. 60 per share as fully paid-up. How much amount will be transferred to Capital Reserve Account?

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