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At the time of forfeiture… (Class 12 Accountancy 2026, Q14)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 14

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 14, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q14 · 1 mark · MCQAccounting for Share Capital

At the time of forfeiture of shares, 'Share Capital Account' is debited with :

  1. (A)Paid-up amount on forfeited shares
  2. (B)Called-up amount on forfeited shares
  3. (C)Face value of shares forfeited
  4. (D)Unpaid amount on forfeited shares

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.

Hints

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

Hint 1

How much capital stands credited for those shares?

Hint 2

That is the amount to be reversed.

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. On forfeiture the share capital that had been called on those shares is cancelled; amounts received go to Share Forfeiture and unpaid calls are closed.

  2. So Share Capital A/c is debited with the called-up amount. Option (B).

    1 mark

Answer: (B) Called-up amount on forfeited shares

Where the marks are

  • Called-up amount (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 paper2026 board paper, set 67/5/1: 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.