Company Accounts

Share Capital

Medium

common

Amit, a shareholder holding 1,000 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including a premium of Rs. 2) and the first and final call of Rs. 3. His shares were forfeited after the first and final call. The amount of Share Forfeiture A/c will be:

Rs.2,500

Rs.5,000

Rs.7,500

Rs.10,000

✅ Correct Option: 2

Face value $10$ = application + allotment (capital part $2$ ) + call $3$ . So application money = $10 - 2 - 3 = 5$ per share.

Amit paid only application money. Share Forfeiture A/c is credited with capital actually received, excluding premium not received.

Amount $= 1{,}000 \times 5 = 5{,}000$ .

2026: 12 May Shift 1

A company forfeits 200 shares of Rs. 10 each on which Rs. 600 had been received. It can allow a maximum discount of Rs. 600 on their reissue. Assuming that the company reissues these shares for Rs. 1,800 as fully paid up. What will be the journal entry for the treatment of remaining forfeited amount after adjustment of discount ?

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Share Forfeiture A/c Dr.		400
	To Capital Reserve A/c			400

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Capital Reserve A/c Dr.		400
	To Share Forfeiture A/c			400

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Share Forfeiture A/c Dr.		200
	To Capital Reserve A/c			200

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Capital Reserve A/c Dr.		200
	To Share Forfeiture A/c			200

2026: 20 May Shift 1

For one person company, Rule 3 of the Companies (Incorporation) Rules, 2014 provides that its average annual turnover of three years does not exceed ..................

2025: 2 June Shift 2

In the case of under subscription of shares.

2022: 15 July Shift 2

The amount received on allotment was

2022: 20 July Shift 1

MNO Ltd. forfeited 1,000 shares of Rs. 10 each on which shareholders had paid only application money of Rs. 3 per share. Out of these, 400 equity shares were reissued as fully paid for Rs. 9 per share. The gain on reissue of shares transferred to Capital reserve is :

2025: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Reserve Capital	(I) That portion of the subscribed capital which has not yet been called up.
(B) Uncalled Capital	(II) It is that part of the issued capital which has been actually subscribed by the public.
(C) Paid up Capital	(III) A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company.
(D) Subscribed Capital	(IV) It is that portion of the called up capital which has been actually received from the shareholders.

Choose the correct answer from the options given below:

Amit, a shareholder holding 1,000 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including a premium of Rs. 2) and the first and final call of Rs. 3. His shares were forfeited after the first and final call. The amount of Share Forfeiture A/c will be:

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)