CBSE 2025, Set 1

Question

PL Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 1,00,000 equity shares of ₹ 10 each. The company offered to the public for subscription 90,000 equity shares. Applications were received for 82,000 equity shares and shares were allotted to all the applicants. All money due was received with the exception of first and final call money of ₹ 2 per share on 2,000 shares allotted to Atishay. His shares were forfeited.

Answer the following questions:
(i) The amount of 'Calls in Arrears' disclosed in 'Notes to Accounts' will be:
(A) ₹ 4,000 (B) ₹ 16,000 (C) Nil (D) ₹ 20,000

(ii) The number of shares of PL Ltd. after forfeiture will be:
(A) 98,000 (B) 88,000 (C) 82,000 (D) 80,000

(iii) In the 'Notes to Accounts', the amount disclosed under 'Share Forfeiture Account' will be:
(A) ₹ 16,000 (B) ₹ 4,000 (C) ₹ 20,000 (D) Nil

(iv) In the 'Notes to Accounts', the amount disclosed under Issued Capital will be:
(A) ₹ 10,00,000 (B) ₹ 9,00,000 (C) ₹ 8,20,000 (D) ₹ 8,00,000

(v) Balance in 'Share Forfeiture Account' will be shown in 'Notes to Accounts' in the balance sheet of PL Ltd. under:
(A) Authorised capital (B) Issued capital (C) Subscribed capital (D) Will not be shown in 'Notes to Accounts'

(vi) The amount of 'Share Capital' disclosed in the balance sheet of PL Ltd. will be:
(A) ₹ 8,00,000 (B) ₹ 8,16,000 (C) ₹ 9,16,000 (D) ₹ 7,90,000

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) (C) Nil** Once the shares are forfeited, the unpaid amount is removed from the 'Calls in Arrears' account. Hence, it becomes Nil. **(ii) (D) 80,000** Subscribed shares were 82,000. 2,000 shares were forfeited and not yet reissued. Remaining active shares = 82,000 - 2,000 = 80,000. **(iii) (A) ₹ 16,000** Amount received on forfeited shares = 2,000 shares × ₹ 8 (amount paid: 10-2) = ₹ 16,000. **(iv) (B) ₹ 9,00,000** Issued capital reflects the amount originally offered to the public, which is 90,000 shares × ₹ 10 = ₹ 9,00,000. **(v) (C) Subscribed capital** The balance of the Share Forfeiture Account is added to the Subscribed Capital in the Notes to Accounts. **(vi) (B) ₹ 8,16,000** Share Capital = (Subscribed and fully paid: 80,000 shares × ₹ 10) + Share Forfeiture Account balance = 8,00,000 + 16,000 = ₹ 8,16,000.

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Accountancy > Accounting For Companies > Accounting For Share Capital

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