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Accountancy · 2025 · 6 marks
CBSE 2025 · Region 5 · Set 1 · Q23
Radhika Ltd. invited applications for issuing 40,000 equity shares of T 100 each at a premium of T 50 per share. The amount was payable as follows:…
Radhika Ltd. invited applications for issuing $\displaystyle 40{,}000$ equity shares of T $\displaystyle 100$ each at a premium of T $\displaystyle 50$ per share. The amount was payable as follows : On Application and Allotment $\displaystyle 3$ $\displaystyle 40$ per share (including $\displaystyle 10$ premium) On First call $\displaystyle 2$ $\displaystyle 45$ per share (including $\displaystyle 5$ premium) On Second and final call Balance Applications for $\displaystyle 39{,}000$ shares were received. Allotment was made in full to all the applicants. Dinu, to whom $\displaystyle 100$ shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at $\displaystyle 70$ per share fully paid up. The second and final call was not yet made. Pass necessary journal entries for the above transactions in the books of Radhika Ltd.
Sona Ltd. invited applications for issuing $\displaystyle 60{,}000$ equity shares of t $\displaystyle 50$ each. The amount was payable as follows : On Application - $\displaystyle 2$ $\displaystyle 20$ per share On Allotment _ $\displaystyle 3$ $\displaystyle 25$ per share On First and final call Balance Applications for $\displaystyle 90{,}000$ shares were received. Applications for $\displaystyle 10{,}000$ shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom $\displaystyle 600$ shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom $\displaystyle 1{,}000$ shares were allotted, failed to pay the first and final call. Her shares were also forfeited. Pass necessary journal entries in the books of Sona Ltd. for the above transactions.
Marking-scheme solution
In the books of Radhika Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Bank A/c Dr. $\displaystyle 15{,}60{,}000$
To Equity Share Application & Allotment A/c $\displaystyle 15{,}60{,}000$
(Application money received on $\displaystyle 39{,}000$
shares)
Equity Share Application & Allotment A/c Dr. $\displaystyle 15{,}60{,}000$
To Equity Share Capital A/c $\displaystyle 11{,}70{,}000$
To Securities Premium A/c $\displaystyle 3{,}90{,}000$
(Application money transferred to share capital
A/c and securities premium A/c on allotment
of shares)
Equity Share First Call A/c Dr. $\displaystyle 17{,}55{,}000$
To Equity Share Capital A/c $\displaystyle 15{,}60{,}000$
To Securities Premium A/c $\displaystyle 1{,}95{,}000$
(Amount due on first call)
Bank A/c Dr. $\displaystyle 17{,}50{,}500$
Calls in arrears A/c Dr. $\displaystyle 4{,}500$
To Equity Share First Call A/c $\displaystyle 17{,}55{,}000$
(First call money received, except on $\displaystyle 100$
shares)
Alternatively,
Bank A/c Dr. $\displaystyle 17{,}50{,}500$
To Equity Share First Call A/c $\displaystyle 17{,}50{,}500$
(First Call money received, except on $\displaystyle 100$
shares)
Equity Share Capital A/c Dr. $\displaystyle 7{,}000$
Securities Premium A/c Dr. $\displaystyle 500$
To Share Forfeiture A/c $\displaystyle 3{,}000$
To Calls in Arrears A/c $\displaystyle 4{,}500$
($\displaystyle 100$ shares forfeited for non-payment of first
call money)
Alternatively,
Equity Share Capital A/c Dr. $\displaystyle 7{,}000$
Securities Premium A/c Dr. $\displaystyle 3{,}000$
To Share Forfeiture A/c $\displaystyle 3{,}000$
To Equity Share First Call A/c $\displaystyle 4{,}500$
($\displaystyle 100$ shares forfeited for non-payment of first
call money)
Bank A/c Dr. $\displaystyle 7{,}000$
Share Forfeiture A/c Dr. $\displaystyle 3{,}000$
To Equity Share Capital A/c $\displaystyle 10{,}000$
($\displaystyle 100$ shares reissued at ₹$\displaystyle 70$ per share as fully
paid up)
Q.(b) Sona Ltd. invited applications……………..
Ans. In the books of Sona Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Bank A/c Dr. $\displaystyle 18{,}00{,}000$
To Equity Share Application A/c $\displaystyle 18{,}00{,}000$
(Application money received on $\displaystyle 90{,}000$
shares)
Equity Share Application A/c Dr. $\displaystyle 18{,}00{,}000$
To Equity Share Capital A/c $\displaystyle 12{,}00{,}000$
To Equity Share Allotment A/c $\displaystyle 4{,}00{,}000$
To Bank A/c $\displaystyle 2{,}00{,}000$
(Application money on $\displaystyle 60{,}000$ shares
transferred to share capital A/c and securities
premium A/c, amount on $\displaystyle 10{,}000$ shares
refunded and the excess amount adjusted to
share allotment account)
Equity Share Allotment A/c Dr. $\displaystyle 15{,}00{,}000$
To Equity Share Capital A/c $\displaystyle 15{,}00{,}000$
(Amount due on allotment)
Bank A/c Dr. $\displaystyle 10{,}89{,}000$
Calls in arrears A/c Dr. $\displaystyle 11{,}000$
To Equity Share Allotment A/c $\displaystyle 11{,}00{,}000$
(Allotment money received, except on $\displaystyle 600$
shares)
Alternatively,
Bank A/c Dr. $\displaystyle 10{,}89{,}000$
To Equity Share Allotment A/c $\displaystyle 10{,}89{,}000$
(Allotment money received, except on $\displaystyle 600$
shares)
Equity Share Capital A/c Dr. $\displaystyle 27{,}000$
To Share Forfeiture A/c $\displaystyle 16{,}000$
To Calls in Arrears A/c $\displaystyle 11{,}000$
($\displaystyle 600$ shares forfeited for non-payment of
allotment money)
Alternatively,
Equity Share Capital A/c Dr. $\displaystyle 27{,}000$
To Share Forfeiture A/c $\displaystyle 16{,}000$
To Equity Share Allotment A/c $\displaystyle 11{,}000$
($\displaystyle 600$ shares forfeited for non-payment of
allotment money)
Equity Share First and Final Call A/c Dr. $\displaystyle 2{,}97{,}000$
To Equity Share Capital A/c $\displaystyle 2{,}97{,}000$
(Amount due on First call on $\displaystyle 59{,}400$ shares)
Bank A/c Dr. $\displaystyle 2{,}92{,}000$
Calls in arrears A/c Dr. $\displaystyle 5{,}000$
To Equity Share First and Final Call A/c $\displaystyle 2{,}97{,}000$
(First call money received, except on $\displaystyle 1{,}000$
shares)
Alternatively,
Bank A/c Dr. $\displaystyle 2{,}92{,}000$
To Equity Share First and Final Call A/c $\displaystyle 2{,}92{,}000$
(Allotment money received, except on $\displaystyle 1000$
shares)
Equity Share Capital A/c Dr. $\displaystyle 50{,}000$
To Share Forfeiture A/c $\displaystyle 45{,}000$
To Calls in Arrears A/c $\displaystyle 5{,}000$
($\displaystyle 1000$ shares forfeited for non-payment of First
and Final Call money)
Alternatively,
Equity Share Capital A/c Dr. $\displaystyle 50{,}000$
To Share Forfeiture A/c $\displaystyle 45{,}000$
To Equity Share First and Final Call A/c $\displaystyle 5{,}000$
($\displaystyle 1000$ shares forfeited for non-payment of First
and Final Call money)
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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.