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Ajanta Ltd. invited… (Class 12 Accountancy 2026, Q25a)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 6 marks · Long answer

CBSE Class 12 Accountancy 2026: question 25(a)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 25(a), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q25(a) · 6 marks · Long answerAccounting for Share Capital

Ajanta Ltd. invited applications for issuing 30,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows :

On Application and Allotment – ₹ 10 per share (including premium)
On first and final call – Balance

Applications for 50,000 shares were received. Applications for 10,000 shares were rejected and their application money was refunded. Pro-rata allotment was made to the remaining applicants. Excess money received with application was adjusted towards sums due on first and final call. Sonu, an applicant of 4,000 shares, paid his entire share money with application. Vedika, to whom 300 shares were allotted, failed to pay the first and final call. After giving her the mandatory notice, her shares were forfeited.

Pass necessary journal entries for the above transactions in the books of Ajanta Ltd.

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

Split the applicants: rejected, pro-rata, and Sonu who paid everything.

Hint 2

Excess application money is held against the call, not refunded.

Hint 3

Vedika's forfeited amount includes the excess she paid with her application.

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. Working. 40,000 applicants get 30,000 shares (4 : 3). Ordinary applicants (36,000) paid ₹ 3,60,000 for 27,000 shares: ₹ 2,70,000 needed, excess ₹ 90,000 kept as calls in advance. Sonu applied for 4,000 and paid ₹ 15 × 4,000 = ₹ 60,000 for 3,000 shares: ₹ 30,000 needed now and ₹ 15,000 for the call, so ₹ 15,000 is refunded. Calls in advance = ₹ 1,05,000; refund = 1,00,000 (rejected) + 15,000 = ₹ 1,15,000. Vedika (300 shares) applied for 400; her excess ₹ 1,000 covers part of her call of ₹ 1,500, leaving ₹ 500 unpaid.

  2. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.5,20,000
    To Equity Share Application and Allotment A/c5,20,000
    (Being application money received, including Sonu's full money on 4,000 shares)
    1 mark
  3. ParticularsDr. (₹)Cr. (₹)
    Equity Share Application and Allotment A/c Dr.5,20,000
    To Equity Share Capital A/c1,50,000
    To Securities Premium A/c1,50,000
    To Bank A/c1,15,000
    To Calls in Advance A/c1,05,000
    (Being application money adjusted, refunded and excess held in advance)
    1½ marks
  4. ParticularsDr. (₹)Cr. (₹)
    Equity Share First and Final Call A/c Dr.1,50,000
    To Equity Share Capital A/c1,50,000
    (Being call of ₹ 5 per share due on 30,000 shares)
    1 mark
  5. ParticularsDr. (₹)Cr. (₹)
    Bank A/c Dr.44,500
    Calls in Advance A/c Dr.1,05,000
    Calls in Arrears A/c Dr.500
    To Equity Share First and Final Call A/c1,50,000
    (Being call money received except ₹ 500 from Vedika)
    1½ marks
  6. ParticularsDr. (₹)Cr. (₹)
    Equity Share Capital A/c Dr.3,000
    To Share Forfeiture A/c2,500
    To Calls in Arrears A/c500
    (Being Vedika's 300 shares forfeited)
    1 mark

Answer: Application ₹ 5,20,000: capital ₹ 1,50,000, premium ₹ 1,50,000, refund ₹ 1,15,000, calls in advance ₹ 1,05,000; call ₹ 1,50,000 received ₹ 44,500 with advance ₹ 1,05,000 and arrears ₹ 500; forfeiture Capital ₹ 3,000 to Forfeiture ₹ 2,500 and Arrears ₹ 500

Where the marks are

  • Money received (1 mark)
  • Adjustment of application money (1½ marks)
  • Call due (1 mark)
  • Call received with advance and arrears (1½ marks)
  • Forfeiture of Vedika's shares (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.