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Assertion (A)… (Class 12 Accountancy SQP 2026-27, Q3)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · Assertion-reason

CBSE Class 12 Accountancy sample paper 2026-27: question 3

From the official CBSE sample question paper for 2026-27, section A, question 3, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q3 · 1 mark · Assertion-reasonCompetency-basedAccounting for Share Capital

Assertion (A): Issue price more than face value received on issue of shares is credited to securities premium account but not to statement of profit and loss.

Reason (R): In case of forfeiture of shares, securities premium not received is debited.

  1. (A)Both (A) and (R) are true and (R) is correct explanation to (A).
  2. (B)Both (A) and (R) are true but (R) is not correct explanation of (A).
  3. (C)(A) is false but (R) is correct.
  4. (D)(A) is correct but (R) is false.

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

Is securities premium a revenue receipt?

Hint 2

Does the forfeiture rule explain why premium goes to a separate account?

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. The Assertion is true: the excess of issue price over face value is a capital receipt credited to Securities Premium, not profit.

  2. The Reason is also true (unpaid premium is debited to Securities Premium on forfeiture), but it is about forfeiture and does not explain the Assertion. Option (B).

    1 mark

Answer: (B) Both (A) and (R) are true but (R) is not correct explanation of (A).

Where the marks are

  • Both statements true, unrelated (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 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.