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Dharma Ltd. was… (Class 12 Accountancy 2026, Q26)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 6 marks · Case-based

CBSE Class 12 Accountancy 2026: question 26

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 26, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q26 · 6 marks · Case-basedCompetency-basedAccounting for Share Capital

Dharma Ltd. was registered with an authorised capital of ₹ 30,00,000 divided into 3,00,000 equity shares of ₹ 10 each. The amount was payable as follows :

On Application – ₹ 2 per share

On Allotment – ₹ 5 per share

On First and Final Call – Balance

The company offered 90,000 shares for public subscription. All the shares were subscribed and the company received all the money due, except allotment and call money on 4,000 shares held by Aditi and call money on 3,000 shares held by Rohit. The directors forfeited shares of Aditi and Rohit.

Answer the following questions on the basis of above information :

  1. (i)

    The nominal capital of Dharma Ltd. is :

    1. (A)₹ 30,00,000
    2. (B)₹ 3,00,000
    3. (C)₹ 9,00,000
    4. (D)₹ 33,00,000
    1 mark
  2. (ii)

    The issued capital of the company is :

    1. (A)₹ 3,00,000
    2. (B)₹ 30,00,000
    3. (C)₹ 9,00,000
    4. (D)₹ 33,00,000
    1 mark
  3. (iii)

    Subscribed and fully paid capital of Dharma Ltd. will be :

    1. (A)₹ 9,00,000
    2. (B)₹ 8,30,000
    3. (C)₹ 8,56,000
    4. (D)Nil
    1 mark
  4. (iv)

    The amount of 'Share Capital' presented in the Balance sheet of Dharma Ltd. under 'Shareholders Funds' will be :

    1. (A)₹ 8,30,000
    2. (B)₹ 8,59,000
    3. (C)₹ 9,00,000
    4. (D)₹ 30,00,000
    1 mark
  5. (v)

    In the Notes to Accounts, the amount to be shown under 'Share Forfeiture Account' will be :

    1. (A)₹ 32,000
    2. (B)₹ 12,000
    3. (C)₹ 44,000
    4. (D)₹ 29,000
    1 mark
  6. (vi)

    Subscribed and not fully paid capital of Dharma Ltd. will be :

    1. (A)₹ 9,00,000
    2. (B)₹ 8,30,000
    3. (C)₹ 8,56,000
    4. (D)Nil
    1 mark

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/1/1.

Hints

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

Hint 1

Nominal = authorised; issued = offered.

Hint 2

Forfeited shares leave the share count.

Hint 3

Forfeited amounts are what the defaulters had paid.

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. (i) Nominal (authorised) capital = 3,00,000 × ₹ 10 = ₹ 30,00,000. Option (A).

    1 mark

  2. (ii) Issued capital = 90,000 × ₹ 10 = ₹ 9,00,000. Option (C).

    1 mark

  3. (iii) After forfeiting Aditi's 4,000 and Rohit's 3,000 shares, 83,000 shares remain fully paid: ₹ 8,30,000. Option (B).

    1 mark

  4. (iv) Share capital in the Balance Sheet = ₹ 8,30,000 + Share Forfeiture ₹ 29,000 = ₹ 8,59,000. Option (B).

    1 mark

  5. (v) Aditi paid only application money: 4,000 × 2 = ₹ 8,000. Rohit paid application and allotment: 3,000 × 7 = ₹ 21,000. Share Forfeiture = ₹ 29,000. Option (D).

    1 mark

  6. (vi) All defaulters' shares were forfeited, so no shares are subscribed but not fully paid: Nil. Option (D).

    1 mark

Answer: (i) A ₹ 30,00,000 (ii) C ₹ 9,00,000 (iii) B ₹ 8,30,000 (iv) B ₹ 8,59,000 (v) D ₹ 29,000 (vi) D Nil

Where the marks are

  • Each part (1 mark each)

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 paper2026 board paper, set 67/1/1: 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.