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XYZ Ltd. was… (Class 12 Accountancy SQP 2026-27, Q21)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2026-27: question 21

From the official CBSE sample question paper for 2026-27, section A, question 21, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q21 · 4 marks · Long answerAccounting for Share Capital

XYZ Ltd. was registered with an authorised capital of ₹ 80,00,000 divided into 8,00,000 equity shares of ₹ 10 each. The company offered 1,00,000 shares for public subscription at ₹ 2 premium. Share was payable as ₹ 3 on application (including ₹ 1 premium), ₹ 6 (including balance premium) on allotment and balance on call. Public had applied for 1,25,000 shares out of which applications for 5,000 shares were rejected and remaining were allotted on pro-rata basis.
All the money has been duly received except allotment and call money on 10,000 shares held by Raja. His shares were forfeited.
Show the Share Capital head as it would appear in the balance sheet and also prepare Notes to Accounts for the same.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Find how many shares Raja applied for at 6 : 5.

Hint 2

His excess application money counts as money received on allotment.

Hint 3

Premium never forms part of share capital.

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. Applicants for 1,20,000 shares got 1,00,000 (6 : 5). Raja (10,000 shares) applied for 12,000 and paid ₹ 36,000; ₹ 6,000 excess went to allotment. Capital received from him = 10,000 × ₹ 2 + ₹ 6,000 = ₹ 26,000, forfeited. Shares in issue after forfeiture = 90,000, fully paid.

    1 mark

  2. Balance Sheet (extract)

    ParticularsNote No.₹
    I. Equity and Liabilities
    1. Shareholders' Funds
    (a) Share Capital19,26,000
    1 mark

  3. Note 1: Share Capital

    Particulars₹
    Authorised: 8,00,000 equity shares of ₹ 10 each80,00,000
    Issued: 1,00,000 equity shares of ₹ 10 each10,00,000
    Subscribed and fully paid up: 90,000 equity shares of ₹ 10 each9,00,000
    Add: Share Forfeiture A/c26,000
    Total9,26,000
    2 marks

Answer: Share Capital ₹ 9,26,000 (90,000 fully paid shares ₹ 9,00,000 + Share Forfeiture ₹ 26,000)

Where the marks are

  • Forfeited amount ₹ 26,000 (1 mark)
  • Balance Sheet extract (1 mark)
  • Notes to accounts (2 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 2026-27: 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.