Skip to content

A company forfeited… (Class 12 Accountancy SQP 2024-25, Q6b)

questionbuddy.in/q/cbse-12-accountancy-2024-25-sqp-q6b-company-forfeited-shares-only-application

AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 6(b)

From the official CBSE sample question paper for 2024-25, section A, question 6(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6(b) · 1 mark · MCQAccounting for Share Capital

A company forfeited 6,000 shares of ₹ 10 each, on which only application money of ₹ 3 has been paid. 4,000 of these shares were re-issued at ₹ 12 per share as fully paid up. Amount of Capital Reserve will be _______.

  1. (A)₹ 18,000
  2. (B)₹ 12,000
  3. (C)₹ 30,000
  4. (D)₹ 24,000

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

Was any discount allowed on the reissue?

Hint 2

Capital Reserve covers only the shares reissued.

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 amount = ₹ 3 per share. The 4,000 shares are reissued at ₹ 12 (a premium), so no discount is set against forfeiture.

  2. All of their forfeited money goes to Capital Reserve: 4,000 × ₹ 3 = ₹ 12,000. Option (B).

    1 mark

Answer: (B) ₹ 12,000

Where the marks are

  • Forfeited ₹ 3 on each of 4,000 reissued shares (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 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.