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A company forfeited… (Class 12 Accountancy SQP 2023-24, Q13)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2023-24: question 13

From the official CBSE sample question paper for 2023-24, section A, question 13, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q13 · 1 mark · MCQAccounting for Share Capital

A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued?

  1. (A)3,000 shares
  2. (B)1,000 shares
  3. (C)2,000 shares
  4. (D)1,500 shares

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Leave the premium out of the forfeited amount.

Hint 2

Capital Reserve per share = forfeited amount − discount on reissue.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Forfeited per share = ₹ 5 paid − ₹ 1 premium = ₹ 4 (premium received is never forfeited). Reissue at ₹ 1 discount leaves ₹ 3 per share for Capital Reserve.

  2. Shares reissued = ₹ 6,000 / ₹ 3 = 2,000. Option (C).

    1 mark

Answer: (C) 2,000 shares

Where the marks are

  • Gain of ₹ 3 per reissued share (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Share Capital, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.