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Lacchoo Ltd… (Class 12 Accountancy SQP 2026-27, Q26A)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Long answer

CBSE Class 12 Accountancy sample paper 2026-27: question 26(A)

From the official CBSE sample question paper for 2026-27, section A, question 26(A), for 6 marks. Try it first; the hints and our step-by-step solution are below.

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

Lacchoo Ltd. invited applications for 1,20,000 equity shares of ₹10 each at a premium of ₹ 4 per share, payable as –
₹6 on Application (including ₹2 premium)
₹5 on Allotment (including ₹1 premium)
Balance on First & Final Call.
Applications were received for 2,70,000 shares, out of which applications for 10,000 shares were rejected and the allotment was made on a pro-rata basis to the remaining applicants.
Mr. Parivesh, who was allotted 1,200 shares, failed to pay call money. His shares were forfeited after due notice. Later, these shares were reissued at ₹ 100 per share as fully paid-up.
Pass necessary Journal Entries in the books of Lacchoo Ltd.

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

Split each instalment into capital and premium.

Hint 2

Excess application money covers allotment; anything beyond that is refunded.

Hint 3

Unpaid premium on forfeited shares is debited back to Securities Premium.

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. Applications 2,70,000; 10,000 rejected; 2,60,000 applicants get 1,20,000 shares. Excess on accepted applications = 1,40,000 × ₹ 6 = ₹ 8,40,000: ₹ 6,00,000 covers allotment in full and ₹ 2,40,000 is refunded with the ₹ 60,000 on rejected applications.

    ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.16,20,000
    To Equity Share Application A/c16,20,000
    (Being application money received on 2,70,000 shares)
    Equity Share Application A/c Dr.16,20,000
    To Equity Share Capital A/c4,80,000
    To Securities Premium A/c2,40,000
    To Equity Share Allotment A/c6,00,000
    To Bank A/c3,00,000
    (Being application money adjusted and excess refunded)
    1½ marks

  2. Allotment and call due.

    ParticularsDr. (₹)Cr. (₹)
    Equity Share Allotment A/c Dr.6,00,000
    To Equity Share Capital A/c4,80,000
    To Securities Premium A/c1,20,000
    (Being allotment money due; fully met from excess application money)
    Equity Share First and Final Call A/c Dr.3,60,000
    To Equity Share Capital A/c2,40,000
    To Securities Premium A/c1,20,000
    (Being call money due: ₹ 2 capital + ₹ 1 premium)
    1½ marks

  3. Parivesh owes 1,200 × ₹ 3 = ₹ 3,600.

    ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.3,56,400
    Calls in Arrears A/c Dr.3,600
    To Equity Share First and Final Call A/c3,60,000
    (Being call money received except on 1,200 shares)
    ½ mark

  4. Capital paid by Parivesh = ₹ 8 per share; the unpaid ₹ 1 of call premium is reversed.

    ParticularsDr. (₹)Cr. (₹)
    Equity Share Capital A/c Dr.12,000
    Securities Premium A/c Dr.1,200
    To Share Forfeited A/c9,600
    To Calls in Arrears A/c3,600
    (Being 1,200 shares forfeited)
    1 mark

  5. Reissue at ₹ 100 as fully paid (₹ 90 premium), so the whole ₹ 9,600 forfeited is a gain.

    ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.1,20,000
    To Equity Share Capital A/c12,000
    To Securities Premium A/c1,08,000
    (Being forfeited shares reissued at ₹ 100)
    Share Forfeited A/c Dr.9,600
    To Capital Reserve A/c9,600
    (Being gain on reissue transferred to Capital Reserve)
    1½ marks

Answer: Application ₹ 16,20,000 (capital ₹ 4,80,000, premium ₹ 2,40,000, allotment ₹ 6,00,000, refund ₹ 3,00,000); allotment ₹ 6,00,000; call ₹ 3,60,000, ₹ 3,56,400 received; forfeiture ₹ 12,000 + ₹ 1,200 to Forfeited ₹ 9,600 and Arrears ₹ 3,600; reissue ₹ 1,20,000; Capital Reserve ₹ 9,600

Where the marks are

  • Application entries (1½ marks)
  • Allotment and call due (1½ marks)
  • Call received (½ mark)
  • Forfeiture (1 mark)
  • Reissue and capital reserve (1½ 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.