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Accountancy · 2026 · 6 marks
CBSE 2026 · Region 1 · Set 3 · Q26
Generic Pharma Ltd. invited applications for using 3,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as…
Generic Pharma Ltd. invited applications for using $\displaystyle 3,00,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 6$ per share. The amount was payable as follows : on Application and Allotment - ₹ $\displaystyle 4$ per share (including premium of ₹ $\displaystyle 2$ per share) on First and Final Call - Balance Applications for $\displaystyle 4,00,000$ shares were received. Applications for $\displaystyle 40,000$ shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on applications was adjusted towards sums due on first and final call. Jain, an applicant for $\displaystyle 3,600$ shares failed to pay the first and final call. His shares were forfeited. Pass necessary journal entries in the books of Generic Pharma Ltd. for the above transactions. Open 'calls in arrears account' and 'calls in advance account', wherever necessary.
Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following eases : (i) Diksha Ltd. forfeited $\displaystyle 3,000$ shares of ? $\displaystyle 10$ each for non-payment of final call of ₹ $\displaystyle 2$ per share. Out of these, $\displaystyle 600$ shares were reissued as fully paid up in such a way that ₹ $\displaystyle 4,200$ was transferred to capital reserve. (ii) Ashoka Ltd. forfeited $\displaystyle 2,000$ equity shares of ₹ $\displaystyle 100$ each issued at a premium of $\displaystyle 10$% for non-payment of allotment money of ₹ $\displaystyle 60$ per share (including premium). The first and final call of ₹ $\displaystyle 20$ per share was not yet made. The forfeited shares were re-issued at ₹ $\displaystyle 70$ per share fully paid up. $\displaystyle 3$ + $\displaystyle 3$
Marking-scheme solution
Books of Generic Pharma Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 16,00,000$
To Equity Share Application and Allotment A/c $\displaystyle 16,00,000$
(Application money received on $\displaystyle 4,00,000$ shares
@₹$\displaystyle 4$ per share, including premium ₹$\displaystyle 2$)
Equity Share Application and Allotment A/c Dr. $\displaystyle 16,00,000$
To Equity Share Capital A/c $\displaystyle 6,00,000$
To Securities Premium A/c $\displaystyle 6,00,000$
To Calls in advance A/c $\displaystyle 2,40,000$
To Bank A/c $\displaystyle 1,60,000$
(Transfer of application money to share capital,
securities premium, first and final call and excess
application money refunded)
Equity Share First and Final call A/c Dr. $\displaystyle 36,00,000$
To Equity Share Capital A/c $\displaystyle 24,00,000$
To Securities Premium A/c $\displaystyle 12,00,000$
(Amount due on share first and final call)
Bank A/c Dr. $\displaystyle 33,26,400$
Call in arrears A/c Dr. $\displaystyle 33,600$
Calls in advance A/c $\displaystyle 2,40,000$
To Equity Share First and Final Call A/c $\displaystyle 36,00,000$
(Amount received on share first and final call except
on $\displaystyle 3,000$ shares)
Equity Share Capital A/c Dr. $\displaystyle 30,000$
Securities Premium A/c Dr. $\displaystyle 12,000$
To Share Forfeiture A/c $\displaystyle 8,400$
To Calls in Arrears A/c $\displaystyle 33,600$
($\displaystyle 3,000$ shares forfeited for non-payment of first and
final call money)
OR
Q. (b) Pass necessary journal entries for forfeiture and reissue…
Ans.
(i)
Books of Diksha Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Share Capital A/c Dr. $\displaystyle 30,000$
To Share Forfeiture A/c $\displaystyle 24,000$
To Share Final Call A/c/ Calls in arrears A/c $\displaystyle 6,000$
($\displaystyle 3,000$ shares forfeited for non-payment of final call of
₹$\displaystyle 2$ per share)
Bank A/c Dr. $\displaystyle 5,400$
Share Forfeiture A/c Dr. $\displaystyle 600$
To Share Capital A/c $\displaystyle 6,000$
(Reissue of $\displaystyle 600$ shares as fully paid)
Share Forfeiture A/c Dr. $\displaystyle 4,200$
To Capital Reserve A/c $\displaystyle 4,200$
(Balance in share forfeiture account transferred to
capital reserve)
(ii)
Books of Ashoka Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Equity Share Capital A/c Dr. $\displaystyle 1,60,000$
Securities Premium A/c Dr. $\displaystyle 20,000$
To Share Forfeiture A/c $\displaystyle 60,000$
To Equity Share Allotment A/c/ Calls in Arrears A/c $\displaystyle 1,20,000$
($\displaystyle 2,000$ equity shares forfeited for non-payment of
allotment money)
Bank A/c Dr. $\displaystyle 1,40,000$
Share Forfeiture A/c Dr. $\displaystyle 60,000$
To Equity Share Capital A/c $\displaystyle 2,00,000$
(Reissue of $\displaystyle 2,000$ shares @₹$\displaystyle 70$ per share fully paid up)
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.