Company Accounts

Share Capital

Hard

common

200 shares of Rs.100 each issued at a premium of Rs.10 were forfeited for the non-payment of allotment money of Rs.60 per share including premium. The first and final call of Rs.20 per share on these shares were not made. The forfeited shares were reissued at Rs.70 per share as fully paid-up. Find the amount of capital reserve.

Rs 4000

Rs 6000

Rs 14000

Nil

✅ Correct Option: 4

Total per share is $110$ . Since allotment is $60$ and the uncalled call is $20$ , application money received is $110 - 60 - 20 = 30$ . Amount forfeited $= 200 \times 30 = 6,000$ .

On reissue as fully paid at $70$ , the discount allowed is $100 - 70 = 30$ per share, that is $200 \times 30 = 6,000$ .

Capital Reserve $= 6,000 - 6,000 =$ Nil.

2025: 2 June Shift 2

A share of Rs.10. Issued at a premium of Rs.3. On which Rs.3 was payable on application and Rs.5 was payable on allotment including premium. A shareholder who had applied for 100 shares was Allotted Only 50 Shares and due to non payment of allotment his shares were forfeited. In this case the amount to be debited to securities premium A/c on forfeiture of these shares are

2025: 27 May Shift 1

Balance of share forfeiture account is shown in the balance sheet under the item:

2026: 6 June Shift 1

Select the features from the following which are related to Calls in Arrears:

(A) It reduces the paid-up capital

(B) It is debited where a company maintains its account.

(D) It is shown on Asset side of the Balance Sheet

Choose the correct answer from the options given below:

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Companies Limited by Shares	(I) A company which has only one person as a member.
(B) Companies Limited by Guarantee	(II) There is no limit on the liability of its members.
(C) Unlimited Companies	(III) The liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up.
(D) One Person Company	(IV) The liability of its members is limited to the extent of the nominal value of shares held by them.

Choose the correct answer from the options given below:

2025: 14 May Shift 1

Shares can be forfeited :

2022: 30 Aug Shift 2

Securities premium Reserve can be utilised ___

A. to return excess money received on application

B. to write off preliminary expenses

C. to issue partly paid bonus shares

D. for premium paid on Redemption of Debentures or preference shares

E. for buy back of shares

Choose the correct answer from the options given below:

Solution

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