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Balance Sheet… (Class 12 Accountancy SQP 2024-25, Q26)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Case-based

CBSE Class 12 Accountancy sample paper 2024-25: question 26

From the official CBSE sample question paper for 2024-25, section A, question 26, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q26 · 6 marks · Case-basedCompetency-basedAccounting for Share Capital

Balance Sheet (Extract) of XYZEE ltd as at 31.03.2024 (as per schedule -III of Companies Act 2013)

Note no.31.03.202331.03.2024
I- Equity & Liabilities
1. Shareholders Funds
a). Share Capital144,90,00054,90,000
b). Reserves and Surplus22,00,0003,60,000

Note no.1 (For year ending 31.03.2023) Share Capital
1). Authorised Share Capital: 8,00,000 Equity Shares of Rs. 10 each: 80,00,000
2). Issued Share Capital: 4,50,000 Equity Shares of Rs. 10 each: 45,00,000
3). Subscribed Share Capital
a). Subscribed and Fully paid: Rs.10 per share on 4,45,000 Equity Shares: 44,50,000
b). Subscribed and not Fully paid: Rs. 10 per share on 5,000 Equity shares: 50,000; Less not paid: Rs. 2 per share on 5,000 Equity shares: -10,000; Total 44,90,000

Note no.1 (For year ending 31.03.2024) Share Capital
1). Authorised Share Capital: 8,00,000 Equity Shares of Rs. 10 each: 80,00,000
2). Issued Share Capital: 5,50,000 Equity Shares of Rs. 10 each: 55,00,000 (Out of these 40,000 shares were issued to the vendors as consideration for Capital asset purchased)
3). Subscribed Share Capital
a). Subscribed and Fully paid: Rs.10 per share on 5,45,000 Equity Shares: 54,50,000
c) Subscribed and not Fully paid: Rs. 10 per share on 5,000 Equity shares: 50,000; Less not paid: Rs. 2 per share on 5,000 Equity shares: -10,000; Total 54,90,000

Note no. 2 - Reserves and Surplus

31.03.202331.03.2024
Capital ReserveNil40,000
Securities Premium2,00,0003,20,000

During the year the company took over the business of Quipa Ltd. with Assets of Rs. 12,00,000/- and Liabilities of Rs.7,30,000. Purchase consideration was paid in cash and by issue of equity shares at par. The entire transaction resulted in Capital reserve of Rs.40,000.

  1. Q1

    What is the total face value of Shares issued by the Company during the year 2023-24.

    1. (A)Rs.10,00,000
    2. (B)Rs. 6,00,000
    3. (C)Rs. 9,50,000
    4. (D)Rs. 11,20,000
    1 mark
  2. Q2

    Shares issued for cash during the year were issued at _______. (assuming they were issued together)?

    1. (A)Rs.10
    2. (B)Rs.8
    3. (C)Rs.12
    4. (D)Rs.11.20
    1 mark
  3. Q3

    On April 1, 2024, the company forfeited all the defaulting shares. What amount will appear in the Share Forfeiture account at the time of forfeiture?

    1. (A)Rs.40,000
    2. (B)Rs. 50,000
    3. (C)Rs.10,000
    4. (D)Rs. 60,000
    1 mark
  4. Q4

    What will be the number of Issued shares, as on April 1,2024, after the forfeiture of these shares?

    1. (A)5,45,000 shares
    2. (B)5,50,000 shares.
    3. (C)4,45,000 shares.
    4. (D)5,05,000 shares.
    1 mark
  5. Q5

    If 2,000 of the forfeited shares were issued at Rs. 14 per share, what will be the amount of securities premium and Capital reserve respectively as on April 1, 2024?

    1. (A)Rs, 3,20,000, Rs.40,000
    2. (B)Rs.3,28,000, Rs.56,000
    3. (C)Rs.3,28,000, Rs.80,000
    4. (D)Rs.3,20,000, Rs.80,000
    1 mark
  6. Q6

    What will be the amount in the "Subscribed and Fully paid" after the reissue of these 2000 shares?

    1. (A)Rs.54,50,000
    2. (B)Rs.55,00,000
    3. (C)Rs.54,70,000
    4. (D)Rs.54,80,000
    1 mark

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Compare the two years' issued capital and premium.

Hint 2

Find the purchase consideration from net assets and the capital reserve.

Hint 3

On reissue at a premium, the whole forfeited amount on those shares is capital reserve.

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. Q1. Issued capital rose from ₹ 45,00,000 to ₹ 55,00,000: shares of face value ₹ 10,00,000 were issued. (A)

    1 mark

  2. Q2. Net assets of Quipa Ltd. = ₹ 12,00,000 − ₹ 7,30,000 = ₹ 4,70,000; capital reserve ₹ 40,000, so consideration = ₹ 4,30,000 (40,000 shares ₹ 4,00,000 + cash ₹ 30,000). The other 60,000 shares were issued for cash; Securities Premium rose ₹ 1,20,000, i.e. ₹ 2 a share, so the issue price was ₹ 12. (C)

    1 mark

  3. Q3. The 5,000 partly paid shares have paid ₹ 8 each (₹ 2 unpaid): Share Forfeiture = ₹ 40,000. (A)

    1 mark

  4. Q4. Forfeiture reduces subscribed capital; issued capital still shows 5,50,000 shares. (B)

    1 mark

  5. Q5. 2,000 shares reissued at ₹ 14: premium ₹ 4 each = ₹ 8,000, so Securities Premium = ₹ 3,28,000. Forfeited ₹ 8 × 2,000 = ₹ 16,000 goes to Capital Reserve: ₹ 40,000 + ₹ 16,000 = ₹ 56,000. (B)

    1 mark

  6. Q6. Fully paid shares = 5,45,000 + 2,000 = 5,47,000 × ₹ 10 = ₹ 54,70,000. (C)

    1 mark

Answer: Q1 (A) ₹ 10,00,000; Q2 (C) ₹ 12; Q3 (A) ₹ 40,000; Q4 (B) 5,50,000 shares; Q5 (B) ₹ 3,28,000 and ₹ 56,000; Q6 (C) ₹ 54,70,000

Where the marks are

  • 1 mark for each of the six answers (6 marks)

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 2024-25: 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.