Accounting for Share Capital: Class 12 Accountancy (CBSE) important questions and practice
Accounting for Share Capital is chapter 5 of 10 in CBSE Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- Types of share capital: authorised, issued, subscribed, called-up, paid-up
- Issue of shares at par and at premium; oversubscription and pro-rata allotment
- Calls in arrears and calls in advance
- Forfeiture of shares and their reissue
- Issue of shares for consideration other than cash
- Disclosure of share capital in the Balance Sheet (Schedule III)
What examiners usually ask
- X Ltd forfeited 500 shares of Rs 10 each, Rs 8 called up, for non-payment of first call of Rs 3; 300 of these were reissued at Rs 7 fully paid; pass journal entries
- A company invited applications for 1,00,000 shares and received applications for 1,50,000; pass entries for pro-rata allotment with excess money adjusted
- Show how share capital will appear in the Balance Sheet of the company as per Schedule III
Exam tip
In forfeiture after pro-rata allotment, first compute the shares applied by the defaulter and the excess application money adjusted, and transfer only the proportionate forfeited amount of reissued shares to Capital Reserve.
Accounting for Share Capital on other boards and exams
Frequently asked questions
What are the important questions from Accounting for Share Capital for CBSE Class 12?
The question types listed above repeat most often in CBSE Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Accounting for Share Capital in the CBSE Class 12 Accountancy syllabus?
Yes. Accounting for Share Capital is part of the current CBSE Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Accounting for Share Capital MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.