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Chitinoor Ltd… (Class 12 Accountancy SQP 2025-26, Q26b)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 6 marks · Long answer

CBSE Class 12 Accountancy sample paper 2025-26: question 26(b)

From the official CBSE sample question paper for 2025-26, section A, question 26(b), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q26(b) · 6 marks · Long answerAccounting for Share Capital

Chitinoor Ltd. invited applications for 2,00,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment (including ₹ 1 premium) and balance on call. Applications were received for 3,00,000 shares out of which 20% applications were rejected and remaining were allotted on pro-rata basis. Rohan, an applicant of 12,000 shares failed to pay allotment money and Mohan holding 8,000 shares paid the entire money along with allotment. Subsequently the call was made, all the money was duly received except from Rohan. Later on, company issued a notice to Rohan to pay the balance in 15 days failing which his shares would be forfeited.
Rohan cleared his dues within the stipulated time period.
Journalise.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Only 80% of applicants get shares, in the ratio 2,40,000 : 2,00,000.

Hint 2

Rohan's excess application money reduces his allotment dues.

Hint 3

Rohan paid in time, so there is no forfeiture: just receive the 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. 20% of 3,00,000 applications (60,000) are rejected; 2,40,000 applicants get 2,00,000 shares (6 : 5). Excess application money on them = 7,20,000 − 6,00,000 = ₹ 1,20,000, adjusted on allotment. Rohan applied for 12,000 and got 10,000 shares; his excess ₹ 6,000 reduces his allotment due of ₹ 50,000 to ₹ 44,000. The call is ₹ 10 − 3 − 4 = ₹ 3 per share, so Mohan, holding 8,000 shares, pays ₹ 24,000 as calls in advance with his allotment money.

  2. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.9,00,000
    To Share Application A/c9,00,000
    (Being application money received on 3,00,000 shares)
    ½ mark
  3. ParticularsDr. (₹)Cr. (₹)
    Share Application A/c Dr.9,00,000
    To Share Capital A/c6,00,000
    To Share Allotment A/c1,20,000
    To Bank A/c1,80,000
    (Being application money adjusted and refunded)
    1 mark
  4. ParticularsDr. (₹)Cr. (₹)
    Share Allotment A/c Dr.10,00,000
    To Share Capital A/c8,00,000
    To Securities Premium A/c2,00,000
    (Being allotment money due)
    ½ mark
  5. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.8,60,000
    Calls in Arrears A/c Dr.44,000
    To Share Allotment A/c8,80,000
    To Calls in Advance A/c24,000
    (Being allotment received, Rohan in arrears, Mohan's call money in advance)
    1½ marks
  6. ParticularsDr. (₹)Cr. (₹)
    Share First and Final Call A/c Dr.6,00,000
    To Share Capital A/c6,00,000
    (Being call money due)
    ½ mark
  7. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.5,46,000
    Calls in Advance A/c Dr.24,000
    Calls in Arrears A/c Dr.30,000
    To Share First and Final Call A/c6,00,000
    (Being call money received except from Rohan; advance adjusted)
    1½ marks
  8. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.74,000
    To Calls in Arrears A/c74,000
    (Being Rohan's arrears received within the notice period)
    ½ mark

Answer: Application ₹ 9,00,000 (refund ₹ 1,80,000, ₹ 1,20,000 to allotment); allotment due ₹ 10,00,000, Bank ₹ 8,60,000, arrears ₹ 44,000, advance ₹ 24,000; call ₹ 6,00,000, Bank ₹ 5,46,000, advance ₹ 24,000, arrears ₹ 30,000; Rohan pays ₹ 74,000 and his shares are not forfeited

Where the marks are

  • Application and adjustment (1½ marks)
  • Allotment due and receipt with arrears and advance (2 marks)
  • Call due and receipt (2 marks)
  • Arrears received from Rohan (½ 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 2025-26: 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.