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Atishyokti Ltd… (Class 12 Accountancy SQP 2023-24, Q21)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2023-24: question 21

From the official CBSE sample question paper for 2023-24, section A, question 21, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q21 · 4 marks · Long answerAccounting for Share Capital

Atishyokti Ltd. company was registered with an authorized capital of ₹20,00,000 divided into 2,00,000 Equity Shares of ₹10 each, payable ₹3 on application, ₹6 on allotment (including ₹1 premium) and balance on call. The company offered 80,000 shares for public subscription. All the money has been duly called and received except allotment and call money on 5,000 shares held by Manish and call money on 4,000 shares held by Alok. Manish's shares were forfeited and out of these 3,000 shares were re-issued ₹9 per share as fully paid up. Show share capital in the books of the company. Also prepare notes to accounts.

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

How much had Manish paid before forfeiture?

Hint 2

Count the shares in issue after forfeiture and reissue.

Hint 3

Alok's unpaid call is shown as calls in arrears.

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. Working. Manish's 5,000 shares paid only ₹ 3 application money, so ₹ 15,000 is forfeited. 3,000 are reissued at ₹ 9 (discount ₹ 1); ₹ 6,000 stays in Share Forfeiture A/c for the 2,000 shares not reissued. Shares now issued = 80,000 − 5,000 + 3,000 = 78,000. Alok's 4,000 shares owe the call of ₹ 2 (₹ 10 − ₹ 3 − ₹ 5): calls in arrears ₹ 8,000.

    Balance Sheet (extract)

    ParticularsNote No.₹
    I. Equity and Liabilities
    1. Shareholders' Funds
    (a) Share Capital17,78,000
    1 mark

  2. Note 1: Share Capital

    Particulars₹
    Authorised Capital: 2,00,000 equity shares of ₹ 10 each20,00,000
    Issued Capital: 80,000 equity shares of ₹ 10 each8,00,000
    1 mark

  3. Subscribed Capital

    Particulars₹
    Subscribed and fully paid up: 74,000 equity shares of ₹ 10 each7,40,000
    Subscribed but not fully paid up: 4,000 equity shares of ₹ 10 each, fully called (40,000) less calls in arrears (8,000)32,000
    1 mark

  4. Add: Share Forfeiture A/c (2,000 shares × ₹ 3) ₹ 6,000. Total share capital = ₹ 7,40,000 + ₹ 32,000 + ₹ 6,000 = ₹ 7,78,000.

    1 mark

Answer: Share Capital ₹ 7,78,000 (fully paid 74,000 shares ₹ 7,40,000; 4,000 shares ₹ 40,000 less calls in arrears ₹ 8,000; Share Forfeiture ₹ 6,000)

Where the marks are

  • Balance Sheet extract (1 mark)
  • Authorised and issued capital (1 mark)
  • Subscribed fully paid and not fully paid (1 mark)
  • Share Forfeiture ₹ 6,000 (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.