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Accountancy · 2025 · 6 marks
CBSE 2025 · Region 1 · Set 1 · Q25
Altima Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows: On…
Altima Ltd. invited applications for issuing $\displaystyle 2,00,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount was payable as follows : On application and allotment - ₹ $\displaystyle 7$ per share (including premium ₹ $\displaystyle 1$) On first and final call - Balance Applications were received for $\displaystyle 2,40,000$ shares. Applications for $\displaystyle 30,000$ shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received on application and allotment was returned. Manvi, who was allotted $\displaystyle 4,000$ shares failed to pay the first and final call money. Her shares were forfeited. All the forfeited shares were reissued at ₹ $\displaystyle 4$ per share fully paid up . Pass necessary journal entries in the books of Altima Ltd.
Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (i) Macil Ltd. forfeited $\displaystyle 3,000$ shares of ₹ $\displaystyle 100$ each issued at $\displaystyle 20$% premium for the non-payment of allotment money of ₹ $\displaystyle 30$ per share and first call of ₹ $\displaystyle 40$ per share (including premium $\displaystyle 5$ $\displaystyle 10$). The second and final call of ₹ $\displaystyle 30$ per share (including premium ₹ $\displaystyle 10$) was not yet called. Out of these, $\displaystyle 2,000$ shares were reissued at ₹ $\displaystyle 80$ per share paid up for ₹ $\displaystyle 90$ per share. (ii) Avian Ltd. forfeited $\displaystyle 10,000$ shares of ₹ $\displaystyle 10$ each on which the first call of ₹ $\displaystyle 4$ per share was not received and the second and final call of ₹ $\displaystyle 1$ per share was not yet called. Out of these, $\displaystyle 4,000$ shares were reissued to Ajay as fully paid up for ₹ $\displaystyle 9$ per share.
Marking-scheme solution
Books of Altima Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 16,80,000$
To Equity Share Application and Allotment A/c $\displaystyle 16,80,000$
(Application money received on $\displaystyle 2,40,000$ shares @₹$\displaystyle 7$ per share,
including premium ₹$\displaystyle 1$)
Equity Share Application and Allotment A/c Dr. $\displaystyle 16,80,000$
To Equity Share Capital A/c $\displaystyle 12,00,000$
To Securities Premium A/c $\displaystyle 2,00,000$
To Bank A/c $\displaystyle 2,80,000$
(Transfer of application money to share capital and excess
application money refunded)
Equity Share First and Final call A/c Dr. $\displaystyle 14,00,000$
To Equity Share Capital A/c $\displaystyle 8,00,000$
To Securities Premium A/c $\displaystyle 6,00,000$
(Amount due on share first and final call)
Bank A/c Dr. $\displaystyle 13,72,000$
To Equity Share First and Final call A/c $\displaystyle 13,72,000$
(Amount received on share first and final call)
or
Bank A/c Dr. $\displaystyle 13,72,000$
Call in arrears A/c Dr. $\displaystyle 28,000$
To Equity Share First and Final Call A/c $\displaystyle 14,00,000$
(Amount received on share first and final call)
Equity Share Capital A/c Dr. $\displaystyle 40,000$
Securities Premium A/c Dr. $\displaystyle 12,000$
To Share Forfeiture A/c $\displaystyle 24,000$
To Equity Share First and Final Call/ Calls in Arrears A/c $\displaystyle 28,000$
($\displaystyle 4000$ shares forfeited for non-payment of first and final call
money)
Bank A/c Dr. $\displaystyle 16,000$
Share Forfeiture A/c Dr. $\displaystyle 24,000$
To Equity Share capital A/c $\displaystyle 40,000$
(Reissue of $\displaystyle 4,000$ shares at ₹$\displaystyle 4$ per share fully paid)
OR
Q. (b) Pass necessary journal entries for forfeiture and reissue…
(i)
Books of Macil Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Share Capital A/c Dr. $\displaystyle 2,40,000$
Securities Premium A/c Dr. $\displaystyle 30,000$
To Share Forfeiture A/c $\displaystyle 60,000$
To Share Allotment A/c $\displaystyle 90,000$
To Share First Call A/c $\displaystyle 1,20,000$
($\displaystyle 3000$ shares forfeited for non-payment of allotment and first call
money)
or
Share Capital A/c Dr. $\displaystyle 2,40,000$
Securities Premium A/c Dr. $\displaystyle 30,000$
To Share Forfeiture A/c $\displaystyle 60,000$
To Calls in Arrears A/c $\displaystyle 2,10,000$
($\displaystyle 3000$ shares forfeited for non-payment of allotment and first call
money)
Bank A/c Dr. $\displaystyle 1,80,000$
To Share Capital A/c $\displaystyle 1,60,000$
To Securities Premium A/c $\displaystyle 20,000$
(Reissue of $\displaystyle 2,000$ shares @₹$\displaystyle 90$ per share ₹$\displaystyle 80$ paid up)
Share Forfeiture A/c Dr. $\displaystyle 40,000$
To Capital Reserve A/c $\displaystyle 40,000$
(Balance in share forfeiture account transferred to capital reserve)
(ii)
Books of Avian Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Share Capital A/c Dr. $\displaystyle 90,000$
To Share Forfeiture A/c $\displaystyle 50,000$
To Share First Call/ Calls in Arrears A/c $\displaystyle 40,000$
($\displaystyle 10,000$ shares forfeited for non-payment of first call money)
Bank A/c Dr. $\displaystyle 36,000$
Share Forfeiture A/c Dr. $\displaystyle 4,000$
To Share Capital A/c $\displaystyle 40,000$
(Reissue of $\displaystyle 4,000$ shares @₹$\displaystyle 9$ per share fully paid up)
Share Forfeiture A/c Dr. $\displaystyle 16,000$
To Capital Reserve A/c $\displaystyle 16,000$
(Balance in share forfeiture account transferred to capital reserve)
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.