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Neha Tech Ltd… (Class 12 Accountancy SQP 2026-27, Q26B)

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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(B)

From the official CBSE sample question paper for 2026-27, 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

Neha Tech Ltd. has authorised capital of ₹ 20,00,000 divided into shares of face value of ₹ 10 each. Company decided to issue 1,00,000 equity shares at a value of ₹ 100 each. The entire face value was payable on application and the entire premium money was payable on allotment.
Applications were received for 1,50,000 shares.
Allotment was made on the following basis:
(i) Applicants of 10,000 shares were sent letters of regret.
(ii) To applicants for another 10,000 shares – Shares were fully allotted
(iii) Remaining applicants were allotted shares on a pro rata basis.
A shareholder who was allotted 18,000 shares belongs to category (iii), failed to pay allotment money and his shares were duly forfeited. Later on, 5,000 shares were reissued as fully paid on a premium of 200%.
You are required to give:
I. Cash Book, Share Capital A/c and Securities Premium A/c.
II. Journal entries for forfeiture and re-issue of shares.

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

Only face value is paid on application, so excess application money goes against the premium due on allotment.

Hint 2

Work out the defaulter's application from the 13 : 9 ratio.

Hint 3

A 200% premium on a ₹ 10 share is ₹ 20.

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. Workings. Issue at ₹ 100 (₹ 10 capital on application, ₹ 90 premium on allotment). Regret 10,000 (₹ 1,00,000 refunded); 10,000 allotted in full; 1,30,000 applicants get 90,000 (13 : 9), so ₹ 4,00,000 excess goes to allotment. The defaulter (18,000 shares) applied for 26,000; his ₹ 80,000 excess leaves ₹ 15,40,000 of premium unpaid. Allotment received = 90,00,000 − 4,00,000 − 15,40,000 = ₹ 70,60,000. Reissue of 5,000 at 200% premium = ₹ 30 each.

    1 mark

  2. Cash Book (bank column)

    Particulars₹Particulars₹
    To Share Application A/c15,00,000By Share Application A/c (refund)1,00,000
    To Share Allotment A/c70,60,000By Balance c/d86,10,000
    To Share Capital A/c (reissue)50,000
    To Securities Premium A/c (reissue)1,00,000
    87,10,00087,10,000
    1½ marks

  3. Share Capital Account

    Particulars₹Particulars₹
    To Share Forfeited A/c1,80,000By Share Application A/c10,00,000
    To Balance c/d8,70,000By Bank A/c (reissue)50,000
    10,50,00010,50,000

    Securities Premium Account

    Particulars₹Particulars₹
    To Share Allotment A/c (unpaid on forfeited shares)15,40,000By Share Allotment A/c90,00,000
    To Balance c/d75,60,000By Bank A/c (reissue)1,00,000
    91,00,00091,00,000
    1½ marks

  4. Journal: forfeiture and reissue

    ParticularsDr. (₹)Cr. (₹)
    Share Capital A/c Dr.1,80,000
    Securities Premium A/c Dr.15,40,000
    To Share Allotment A/c15,40,000
    To Share Forfeited A/c1,80,000
    (Being 18,000 shares forfeited for non-payment of allotment)
    Bank A/c Dr.1,50,000
    To Share Capital A/c50,000
    To Securities Premium A/c1,00,000
    (Being 5,000 forfeited shares reissued at ₹ 30)
    Share Forfeited A/c Dr.50,000
    To Capital Reserve A/c50,000
    (Being gain on reissue transferred to Capital Reserve)
    2 marks

Answer: Cash Book balance ₹ 86,10,000; Share Capital ₹ 8,70,000; Securities Premium ₹ 75,60,000; forfeiture ₹ 1,80,000 (premium ₹ 15,40,000 reversed); reissue ₹ 1,50,000; Capital Reserve ₹ 50,000

Where the marks are

  • Workings (1 mark)
  • Cash Book (1½ marks)
  • Share Capital and Securities Premium accounts (1½ marks)
  • Forfeiture and reissue entries (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.