CBSE 2026 · Region 1 · Set 2 · Q25

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.

OR

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (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. $\displaystyle 3$ + $\displaystyle 3$