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Pali Limited… (Class 12 Accountancy SQP 2025-26, Q3a)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 3(a)

From the official CBSE sample question paper for 2025-26, 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

Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for 1,95,000 shares, which were duly allotted. The amount was payable as ₹3 on Application (including ₹1 premium), ₹ 6 on Allotment (including ₹1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share as fully paid up. The amount of Capital Reserve will be:

  1. (A)₹ 16,000
  2. (B)₹ 12,000
  3. (C)₹ 8,000
  4. (D)₹ 18,000

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

Premium already received is never forfeited; only the capital part of what was paid is.

Hint 2

Was any discount allowed on reissue at ₹ 11?

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. Manoj paid only the application money of ₹ 3, of which ₹ 1 is premium, so ₹ 2 per share went to share capital. Amount forfeited = 6,000 × ₹ 2 = ₹ 12,000.

  2. The 4,000 shares were reissued at ₹ 11 (face value ₹ 10 + ₹ 1 premium), so there is no discount on reissue. Forfeited amount on these 4,000 shares = 4,000 × ₹ 2 = ₹ 8,000, all of which goes to Capital Reserve. Option (C).

    1 mark

Answer: (C) ₹ 8,000

Where the marks are

  • Forfeiture of ₹ 2 per share on 4,000 reissued shares moved to Capital Reserve (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 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.