Company Accounts

Share Capital

Hard

common

The directors of Roly Paper Limited decided that 400 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 re-issued at Rs.50 per share to Mohita. Necessary journal entry for Profit on reissue forfeited shares transferred to capital reserve will be?

Shares Forfeiture A/c Dr. 20,500

To Capital Reserve A/c 20,500

Shares Forfeiture A/c Dr. 3,000

To Capital Reserve A/c 3,000

Shares Forfeiture A/c Dr. 7,500

To Capital Reserve A/c 7,500

Share Forfeiture A/c Dr. 28,000

To Capital Reserve A/c 28,000

✅ Correct Option: 2

Amount received before forfeiture $= 400 \times (100 - 30) = 28{,}000$ , i.e. Rs. 70 per share. For the 150 shares reissued, forfeited amount $= 150 \times 70 = 10{,}500$ and discount on reissue $= 150 \times (100 - 50) = 7{,}500$ . Capital reserve $= 10{,}500 - 7{,}500 = 3{,}000$ .

2022: 16 July Shift 2

The shares are reissued at

2023: 29 May Shift 2

When a company issues shares in open market and the amount is payable in instalments. What is the sequence of amount demanded by the company?

A. Money received on calls

B. Money due on calls

C. Allotment money received

D. Application money transferred to Share Capital A/c

E. Allotment money due.

Choose the correct answer from the options given below:

2026: 11 May Shift 1

A company having only a natural person as an Indian citizen and resident in India and cannot carry out non-banking financial investment activities. Its paid-up share capital is not more than Rs. 50 lakhs. Its average annual turnover of three years does not exceed Rs. 2 crores. Which type of company is this?

2025: 13 May Shift 2

Which statements are correct-

(A) A company's shares are generally transferable.

(B) Shareholders of a company are liable for the acts of the company.

(D) Paid up capital can exceed called up capital.

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Identify the amount by which bank account would be debited/credited on refund of rejected applications

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A)The maximum amount of share capital which a company is authorized to issue is known as :	(I) Capital reserve
(B) Shares can be forfeited for:	(II) Share capital
(C) The profit on the reissue of forfeited shares is transferred to :	(III) Nominal share capital
(D) Balance of share forfeiture account is shown in the balance sheet under the item :	(IV) Non-payment of call money

Choose the correct answer from the options given below:

Solution

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