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If 10,000 shares… (Class 12 Accountancy SQP 2023-24, Q3a)

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

CBSE Class 12 Accountancy sample paper 2023-24: question 3(a)

From the official CBSE sample question paper for 2023-24, section A, question 3(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q3(a) · 1 mark · MCQAccounting for Share Capital

If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 of these shares were re-issued @ ₹11 per share as fully paid up, then what is the minimum amount that company must collect at the time of re-issue of the remaining 3,000 shares?

  1. (A)₹21,000
  2. (B)₹9,000
  3. (C)₹16,000
  4. (D)₹30,000

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 each forfeited share paid before the final call?

Hint 2

Discount on reissue cannot exceed the amount forfeited on those shares.

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. The final call of ₹ 3 was unpaid, so ₹ 7 per share had been received and forfeited: 10,000 × ₹ 7 = ₹ 70,000. The 7,000 shares reissued at ₹ 11 needed no discount.

  2. The 3,000 shares still held carry ₹ 7 each of forfeited money (₹ 21,000), which is the most discount the company can allow. Minimum to collect = 3,000 × (₹ 10 − ₹ 7) = ₹ 9,000. Option (B).

    1 mark

Answer: (B) ₹9,000

Where the marks are

  • Maximum discount equals the ₹ 7 forfeited per share, so minimum collection is ₹ 3 per 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.