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CUET Accountancy 2025 PYQs22 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 22 May Shift 1

Share Capital

past year questions, Company Accounts, CUET Accountancy 2025 22 May Shift 1

Easy

common

Which of the following will be credited for the excess amount received along with allotment money from the shareholders?

Solution

✅ Correct Option: 2

When shareholders pay more than the amount due at any stage (like allotment), the excess amount represents advance payment for future calls.

Journal Entry Treatment:

The excess amount received is credited to Calls in Advance Account because:

  • It is not yet due from the shareholders
  • It represents payment in advance of future calls
  • It is a liability for the company until those calls are actually made

For example, if allotment money due is ₹3 per share but a shareholder pays ₹5 per share (₹2 excess):

Bank A/c ... Dr. ₹5

To Share Allotment A/c ... ₹3

To Calls in Advance A/c ... ₹2

Why other options are incorrect:

Calls in Arrears Account is debited (not credited) when shareholders fail to pay the amount due.

Share Call Account is credited only for the amount actually called up and due at that stage, not for excess amounts.

Share Capital Account is credited for the total nominal value of shares issued, irrespective of when and how much is received.

Therefore, Calls in Advance Account (Option 2) is credited for excess amounts received.

Related questions:

2026: 29 May Shift 1

Which of the following types of issue of shares is allowed to a company?

(A) Issue of shares of Face Value Rs. 10 at Rs. 11 by Initial Public Offer

(B) Issue of shares of Face Value Rs. 10 at Rs. 10 by Initial Public Offer

(C) Issue of shares of Face Value Rs. 10 at Rs. 9 by Initial Public Offer

(D) Issue of shares of Face Value Rs. 10 at Rs. 9 to its employees

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Sec. 2 (62) of the companies Act, 2013, defines OPC as a "company which has only one person as a member". Rule 3 of the Companies (Incorporation) Rules, 2014 provides that:

2026: 19 May Shift 1

Choose the correct order of the following in the Notes to Accounts of the Balance Sheet of the company:

(A) Calls in arrear

(B) Nominal Capital

(C) Issued Capital

(D) Subscribed and fully paid up capital

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Securities Premium Account can be used only for the following purposes:

(A) To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;

(B). Buy back of own shares.

(C). To write-off the expenses of, or commission paid, or discount allowed on any securities of the company;

(D). To pay premium on the redemption of preference shares or debentures of the company.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

Applications Supported by Blocked Amount (ASBA) is a process developed by.......................to apply for subscribing to IPOs and Rights Issue etc. of securities.

2025: 24 May Shift 1

The amount of Securities Premium can be used only for the following purposes:

(A) To write off preliminary expenses.

(B) To make partly paid shares as fully paid up.

(C) To issue fully paid bonus shares.

(D) Purchase of its own shares.

Choose the correct answer from the options given below:

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