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Accountancy · 2026 · 6 marks
CBSE 2026 · Region 5 · Set 2 · Q24
Ajanta Ltd. invited applications for issuing $\displaystyle 30,000$ equity shares of T $\displaystyle 10$ each at a premium of $\displaystyle 5$ per share. The amount was payable as follows : On Application and Allotment $\displaystyle 10$ per share (including premium) On first and final call Balance Applications for $\displaystyle 50,000$ shares were received. Applications for $\displaystyle 10,000$ 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 $\displaystyle 4,000$ shares, paid his entire share money with application. Vedika, to whom $\displaystyle 300$ 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.Rao Ltd. forfeited $\displaystyle 750$ equity shares of $\displaystyle 10$ each for non-payment of first call of $\displaystyle 3$ per share (including premium of $\displaystyle 1$ per share). The second and final call of $\displaystyle 3$ per share was not yet made. Of the forfeited shares, $\displaystyle 500$ were re-issued for ₹ $\displaystyle 2,500$, $\displaystyle 7$ per share paid-up. Pass necessary journal entries for the above transactions in the books of Rao Ltd. (ii) Lily Ltd. forfeited $\displaystyle 2,000$ equity shares of $\displaystyle 2$ $\displaystyle 10$ each for non-payment of first and final call of $\displaystyle 2$ per share. $\displaystyle 750$ of the forfeited shares were reissued to Ashok for ₹ $\displaystyle 10,000$ as fully paid-up. The remaining shares were reissued to Sudha at $\displaystyle 9$ per share fully paid-up. Pass necessary journal entries for the above transactions in the books of Lily Ltd.
Ajanta Ltd. invited applications for issuing $\displaystyle 30,000$ equity shares of T $\displaystyle 10$ each at a premium of $\displaystyle 5$ per share. The amount was payable as follows : On Application and Allotment $\displaystyle 10$ per share (including premium) On first and final call Balance Applications for $\displaystyle 50,000$ shares were received. Applications for $\displaystyle 10,000$ 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 $\displaystyle 4,000$ shares, paid his entire share money with application. Vedika, to whom $\displaystyle 300$ 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.
Rao Ltd. forfeited $\displaystyle 750$ equity shares of $\displaystyle 10$ each for non-payment of first call of $\displaystyle 3$ per share (including premium of $\displaystyle 1$ per share). The second and final call of $\displaystyle 3$ per share was not yet made. Of the forfeited shares, $\displaystyle 500$ were re-issued for ₹ $\displaystyle 2,500$, $\displaystyle 7$ per share paid-up. Pass necessary journal entries for the above transactions in the books of Rao Ltd. (ii) Lily Ltd. forfeited $\displaystyle 2,000$ equity shares of $\displaystyle 2$ $\displaystyle 10$ each for non-payment of first and final call of $\displaystyle 2$ per share. $\displaystyle 750$ of the forfeited shares were reissued to Ashok for ₹ $\displaystyle 10,000$ as fully paid-up. The remaining shares were reissued to Sudha at $\displaystyle 9$ per share fully paid-up. Pass necessary journal entries for the above transactions in the books of Lily Ltd.
Marking-scheme solution
Books of Ajanta Ltd.
Journal
Date Particulars L. Dr. Cr.
F. Amount(₹) Amount(₹)
Bank A/c Dr. $\displaystyle 5,20,000$
To Equity Share Application and $\displaystyle 5,20,000$
Allotment A/c
(Application money received for $\displaystyle 50,000$
equity shares @ ₹$\displaystyle 5$ per share, at premium
of ₹$\displaystyle 5$ per share and entire share money for
$\displaystyle 4000$ shares)
Equity Share Application and
Allotment A/c Dr. $\displaystyle 5,20,000$
To Equity Share Capital A/c $\displaystyle 1,50,000$
To Securities Premium A/c $\displaystyle 1,50,000$
To Bank A/c $\displaystyle 1,15,000$
To Calls in Advance A/c $\displaystyle 1,05,000$
(Money received at the time of application
transferred to share capital account,
securities premium, amount refunded for
applications rejected and balance
transferred to call in advance account)
Equity Share First and Final Call A/c Dr. $\displaystyle 1,50,000$
To Equity Share Capital A/c $\displaystyle 150,000$
(First and final call due on $\displaystyle 30,000$ equity
shares @ ₹$\displaystyle 5$ per share)
Bank A/c Dr. $\displaystyle 44,500$
Calls in Advance A/c Dr. $\displaystyle 1,05,000$
Calls in Arrears A/c Dr. $\displaystyle 500$
To Equity Share First and Final Call A/c $\displaystyle 1,50,000$
(First and final call money received except
for $\displaystyle 300$ equity shares)
Bank A/c Dr. $\displaystyle 44,500$
Calls in Advance A/c Dr. $\displaystyle 1,05,000$
To Equity Share First and Final Call A/c $\displaystyle 1,49,500$
(First and final call money received except
on $\displaystyle 300$ equity shares)
Equity Share Capital A/c Dr. $\displaystyle 3,000$
To Share Forfeiture A/c $\displaystyle 2,500$
To Calls in Arrears A/c / $\displaystyle 500$
Equity Share First and Final call A/c
($\displaystyle 300$ equity shares of ₹$\displaystyle 10$ each, forfeited
for non-payment of first and final call)
Q.(b)
(i) Rao Ltd. forfeited $\displaystyle 750$ equity shares…………………….
Ans.
Books of Rao Ltd.
Journal
Date Particulars L. Dr. Cr.
F. Amount(₹) Amount(₹)
Equity Share Capital A/c Dr. $\displaystyle 5,250$
Securities Premium A/c Dr. $\displaystyle 750$
To Share Forfeiture A/c $\displaystyle 3,750$
To Calls in Arrears A/c/ $\displaystyle 2,250$
Equity Share First Call A/c
($\displaystyle 750$ equity shares of ₹$\displaystyle 10$ each, ₹$\displaystyle 7$ per share
called up, forfeited for non-payment of first
call)
Bank A/c Dr. $\displaystyle 2,500$
Share Forfeiture A/c Dr. $\displaystyle 1,000$
To Equity Share Capital A/c $\displaystyle 3,500$
($\displaystyle 500$ equity shares reissued for ₹$\displaystyle 2,500$, ₹$\displaystyle 7$ per
share paid-up)
Share Forfeiture A/c Dr. $\displaystyle 1,500$
To Capital Reserve A/c $\displaystyle 1,500$
(Gain on re-issue of shares transferred to capital
reserve)
(ii)
Lily Ltd. forfeited $\displaystyle 2,000$ equity shares………………………………..
Ans.
Books of Lily Ltd.
Journal
Date Particulars L. Dr. Cr.
F. Amount(₹) Amount(₹)
Equity Share Capital A/c Dr. $\displaystyle 20,000$
To Share Forfeiture A/c $\displaystyle 16,000$
To Calls in Arrears A/c / $\displaystyle 4,000$
Equity Share First and Final Call A/c
($\displaystyle 2,000$ equity shares of ₹$\displaystyle 10$ each, forfeited for
non-payment of first and final call)
Bank A/c Dr. $\displaystyle 10,000$
To Equity Share Capital A/c $\displaystyle 7,500$
To Securities Premium A/c $\displaystyle 2,500$
($\displaystyle 750$ equity shares reissued for ₹$\displaystyle 10,000$, fully
paid-up)
Bank A/c Dr. $\displaystyle 11,250$
Share Forfeiture A/c Dr. $\displaystyle 1,250$
$\displaystyle 12,500$
To Equity Share Capital A/c
($\displaystyle 1,250$ equity shares reissued at $\displaystyle 9$ per share, fully
paid up)
Share Forfeiture A/c Dr. $\displaystyle 14,750$
To Capital Reserve A/c $\displaystyle 14,750$
(Gain on re-issue of shares transferred to capital
reserve)
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CBSE Class 12 Accountancy past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.