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CUET Accountancy 2025 PYQs14 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 14 May Shift 1

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 14 May Shift 1

Easy

Steps for Forfeiture of Shares-

(A) Issue of Prospectus

(B) Shares Forfeiture

(C) Receipt of Application

(D) Allotment of Shares

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

The correct sequence of steps leading to forfeiture of shares follows the chronological order of share issuance process:

Issue of Prospectus (A) → A company first invites the public to subscribe for shares by issuing a prospectus containing details about the company and the share offering.

Receipt of Application (C) → Interested investors submit their applications along with application money to purchase shares.

Allotment of Shares (D) → After scrutinizing applications, the company allots shares to applicants. The allottees become shareholders and are required to pay allotment money and subsequent calls.

Shares Forfeiture (B) → When a shareholder fails to pay the allotment money or call money despite proper notice, the company forfeits their shares as per the provisions in the Articles of Association.

Forfeiture is the final consequence when a shareholder defaults on payment, which can only occur after shares have been properly issued and allotted. The sequence (A), (C), (D), (B) represents the natural progression from share issue to forfeiture.

Correct Answer: Option 1

Related questions:

2025: 30 May Shift 1

Arrange the following in correct sequence :

(A) Paid up Capital

(B) Subscribed Capital

(C) Issued Capital

(D) Authorised Capital

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Which of the following are related to forfeiture of shares issued on premium :

(A) Share capital is debited with called up amount

(B) Calls in Advance is credited

(C) Share Forfeiture Account is credited with amount received

(D) Premium received on such Shares is debited, if it is received

Choose the correct answer from the options given below:

2026: 29 May Shift 2

In share capital, the amount on any call should not exceed ________ of the face value of shares.

2023: 29 May Shift 2

Identify the account to which the discount allowed on reissue of forfeited shares should be debited.

2023: 20 June Shift 2

Arrange the following in the context of "Buy Back of Shares".

A. Articles of Association must authorise Buy Back of share

B. Buy Back should be completed within 12 months

C. Maintaining debt equity ratio of not more than 2:1 after Buy Back

D. Passing Special Resolution in annual general meeting

E. Filing solvency declaration with registrar and SEBI

Choose the correct answer from the options given below:

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-

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