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Accountancy · 2026 · 6 marks
CBSE 2026 · Region 3 · Set 2 · Q26
Madhav Ltd. invited applications for issuing $\displaystyle 4,00,000$ equity shares of $\displaystyle 10$ each at a premium of $\displaystyle 4$ per share. The amount was T T payable as follows : On Application and Allotment $\displaystyle 6$ per share (including premium $\displaystyle 2$) On First and Final Call Balance Applications for $\displaystyle 6,00,000$ shares were received. Applications for $\displaystyle 1,00,000$ shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due on first and final call. A shareholder, who had applied for $\displaystyle 500$ shares, failed to pay the first and final call. His shares were forfeited. Pass necessary journal entries in the books of Madhav Ltd. for the above transactions.NN Ltd. forfeited $\displaystyle 800$ equity shares of T $\displaystyle 100$ each for non-payment of the first call of $\displaystyle 20$ per share. The second $\displaystyle 2$ and final call of $\displaystyle 30$ per share was not yet made. Out of the f forfeited shares, $\displaystyle 600$ shares were re-issued for ₹ $\displaystyle 54,000$ as fully paid-up. Pass necessary journal entries for the above transactions in the books of NN Ltd. (ii) KG Ltd. forfeited $\displaystyle 7,000$ equity shares of $\displaystyle 100$ each, issued at a premium of $\displaystyle 20$ per share, for non-payment of second and T final call of T $\displaystyle 20$ per share. The forfeited shares were re-issued at $\displaystyle 80$ per share, fully paid-up. Pass necessary journal entries for the above transactions in the books of KG Ltd.
Madhav Ltd. invited applications for issuing $\displaystyle 4,00,000$ equity shares of $\displaystyle 10$ each at a premium of $\displaystyle 4$ per share. The amount was T T payable as follows : On Application and Allotment $\displaystyle 6$ per share (including premium $\displaystyle 2$) On First and Final Call Balance Applications for $\displaystyle 6,00,000$ shares were received. Applications for $\displaystyle 1,00,000$ shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due on first and final call. A shareholder, who had applied for $\displaystyle 500$ shares, failed to pay the first and final call. His shares were forfeited. Pass necessary journal entries in the books of Madhav Ltd. for the above transactions.
NN Ltd. forfeited $\displaystyle 800$ equity shares of T $\displaystyle 100$ each for non-payment of the first call of $\displaystyle 20$ per share. The second $\displaystyle 2$ and final call of $\displaystyle 30$ per share was not yet made. Out of the f forfeited shares, $\displaystyle 600$ shares were re-issued for ₹ $\displaystyle 54,000$ as fully paid-up. Pass necessary journal entries for the above transactions in the books of NN Ltd. (ii) KG Ltd. forfeited $\displaystyle 7,000$ equity shares of $\displaystyle 100$ each, issued at a premium of $\displaystyle 20$ per share, for non-payment of second and T final call of T $\displaystyle 20$ per share. The forfeited shares were re-issued at $\displaystyle 80$ per share, fully paid-up. Pass necessary journal entries for the above transactions in the books of KG Ltd.
Marking-scheme solution
Books of Madhav Ltd.
Journal
Date Particulars L. Dr. Amount Cr. Amount
F. (`) (`)
Bank A/c Dr. $\displaystyle 36,00,000$
To Equity Share Application & Allotment A/c $\displaystyle 36,00,000$
(Application money received on $\displaystyle 6,00,000$ shares
@ `$\displaystyle 6$ per share)
Equity Share Application & Allotment A/c Dr. $\displaystyle 36,00,000$
To Equity Share Capital A/c $\displaystyle 16,00,000$
To Securities Premium A/c $\displaystyle 8,00,000$
$\displaystyle 6,00,000$
To Calls in Advance A/c
$\displaystyle 6,00,000$
To Bank A/c
(Application money transferred to share capital
a/c, securities premium a/c calls in advance a/c
and refunded)
Equity Share First & Final Call A/c Dr. $\displaystyle 32,00,000$
To Equity Share Capital A/c $\displaystyle 24,00,000$
To Securities Premium A/c $\displaystyle 8,00,000$
(Amount due on share first & final call on
`$\displaystyle 8$
$\displaystyle 4,00,000$ shares @ per share)
$\displaystyle 25,97,400$
Bank A/c Dr.
Calls in Arrears A/c Dr. $\displaystyle 2,600$
Calls in Advance A/c Dr. $\displaystyle 6,00,000$
To Equity Share First & Final Call A/c $\displaystyle 32,00,000$
(Amount received on first & final call with
exception on $\displaystyle 400$ shares and calls in advance
adjusted)
Alternatively
$\displaystyle 25,97,400$
Bank A/c Dr.
Calls in Advance A/c Dr. $\displaystyle 6,00,000$
To Equity Share First & Final Call A/c $\displaystyle 31,97,400$
(Amount received on first & final call with
exception on $\displaystyle 400$ shares and calls in advance
adjusted)
$\displaystyle 4,000$
Equity Share Capital A/c Dr.
$\displaystyle 800$
Securities Premium A/c Dr.
$\displaystyle 2,200$
To Share Forfeiture A/c
$\displaystyle 2,600$
To Calls in Arrears A/c
/Share First & Final Call A/c
($\displaystyle 400$ shares forfeited for non- payment of first
and final call)
Q. (i) NN Ltd. forfeited $\displaystyle 800$ equity shares of `$\displaystyle 100$ …..
Ans
Books of N N Ltd.
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
(`) (`)
Equity Share Capital A/c Dr. $\displaystyle 56,000$
To Share Forfeiture A/c $\displaystyle 40,000$
To Calls in Arrears A/c $\displaystyle 16,000$
/Share First Call A/c
($\displaystyle 800$ shares forfeited for non-payment of first
call of `$\displaystyle 20$ per share)
Bank A/c Dr. $\displaystyle 54,000$
Share Forfeiture A/c Dr. $\displaystyle 6,000$
To Equity Share Capital A/c $\displaystyle 60,000$
($\displaystyle 600$ shares re-issued as fully paid for `$\displaystyle 54,000$)
Share Forfeiture A/c Dr. $\displaystyle 24,000$
To Capital Reserve A/c $\displaystyle 24,000$
(Gain on reissue of shares transferred to capital
reserve)
(ii)
KG Ltd. forfeited $\displaystyle 7,000$ equity shares…..
Ans.
Books of K G Ltd.
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
(`) (`)
Equity Share Capital A/c Dr. $\displaystyle 7,00,000$
To Share Forfeiture A/c $\displaystyle 5,60,000$
To Calls in Arrears A/c $\displaystyle 1,40,000$
/Share Second & Final Call A/c
($\displaystyle 7,000$ equity shares forfeited for non-payment
of second & final call of `$\displaystyle 20$ per share)
Bank A/c Dr. $\displaystyle 5,60,000$
Share Forfeiture A/c Dr. $\displaystyle 1,40,000$
To Equity Share Capital A/c $\displaystyle 7,00,000$
($\displaystyle 7,000$ shares re-issued at `$\displaystyle 80$ per share, fully
paid up)
Share Forfeiture A/c Dr. $\displaystyle 4,20,000$
To Capital Reserve A/c $\displaystyle 4,20,000$
(Gain on reissue of shares transferred to
Capital Reserve)
Part – B
Option I
(Analysis of Financial Statements)
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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.