NAME…………………….
ANURAG SIR ASSIGNMENT
ROLL NO…………………. Accountancy –(055)
Class XII-(2025-26)………………………………………………………
Q.1 Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of
₹10,00,000 and liabilities of ₹ 1,70,000 by: a) Issuing 8,000 8% Debentures of ₹ 100 each at 5%
premium redeemable after 6 years @ ₹ 110; and b) Cheque for ₹ 50,000. Pass the Journal entries in
the books of Pioneer Fitness Ltd.
Q.2 Lilly Ltd. forfeited 100 shares of ₹10 each issued at10% premium (₹8 called up ) on which a
shareholder did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60
shares were reissued to Ram as fully paid for ₹8 per share and 20 shares to Suraj as fully paid up @
₹12 per share at different intervals of time. Prepare Share Forfeiture account.
Q.3 Atishyokti Ltd. company was registered with an authorized capital of ₹ 20,00,000 divided into
2,00,000 Equity Shares of ₹ 10 each, payable ₹ 3 on application, ₹ 6 on allotment (including ₹ 1
premium) and balance on call. The company offered 80,000 shares for public subscription. All the
money has been duly called and received except allotment and call money on 5,000 shares held by
Manish and call money on 4,000 shares held by Alok. Manish’s shares were forfeited and out of these
3,000 shares were re-issued ₹ 9 per share as fully paid up. Show share capital in the books of the
company. Also prepare notes to accounts.
Q.4 The Directors of Rockstar Ltd. invited applications for 2,00,000 Shares of ₹ 10 each, issued at 20%
premium. Share was payable as ₹ 5 on application, ₹ 4 (including premium) on allotment and balance
on call. Public had applied for 3,20,000 shares out of which applications for 20,000 shares were
rejected and remaining were alloted on pro-rata basis. Simba, an applicant of 15,000 shares failed to
pay allotment and call money. His shares were forfeited and out of these 6,000 shares were reissued
at a discount of ₹2 per share. Journalise.
Q.5 Shaktimaan Ltd. invited applications for issuing 1,00,000 Shares of ₹ 10 each at a premium of ₹2
per share. The amount was payable as₹ 4 on application (including premium); ₹ 5 on Allotment and
balance on call. Applications were received shares for 1,80,000 of which Applications for 30,000 shares
were rejected and remaining applicants were allotted on pro-rata basis. Manthan, holding 5,000
shares failed to pay call money and his shares were forfeited. Out of these 2,000 shares were re-
issued at premium of ₹ 3 per share. Prepare Cash Book and pass necessary entries.
Q.6 On July 01, 2022, Panther Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 8% premium and
redeemable at a premium of 15% in four equal instalments starting from the end of the third year.
The balance in Securities Premium on the date of issue of debentures was ₹ 80,000. Interest on
debentures was to be paid on March 31 every year. Pass Journal entries for the financial year 2022-23.
Also prepare Loss on Issue of Debentures account
Q.7 Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of
₹10,00,000 and liabilities of ₹ 1,70,000 by: a) Issuing 8,000 8% Debentures of ₹ 100 each at 5%
premium redeemable after 6 years @ ₹ 110; and b) Cheque for ₹ 50,000. Pass the Journal entries in
the books of Pioneer Fitness Ltd.
Q.8 Lilly Ltd. forfeited 100 shares of ₹10 each issued at10% premium (₹8 called up ) on which a
shareholder did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60
shares were reissued to Ram as fully paid for ₹8 per share and 20 shares to Suraj as fully paid up @
₹12 per share at different intervals of time. Prepare Share Forfeiture account.
Q.9 If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share
and only 7,000 of these shares were re-issued @₹ 11 per share as fully paid up, then what is the
minimum amount that company must collect at the time of re-issue of the remaining 3,000 shares?
a) ₹ 21,000 b) ₹ 9,000 c) ₹ 16,000 d) ₹ 30,000
Q.10 On 1st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During
the year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance
amount to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of
₹100 each at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement
of P&L for the year for Loss on issue of Debentures would be:
a) ₹30,00,000. b) ₹22,00,000. c) ₹24,00,000. d) ₹20,00,000
Q.11 Alexa Ltd. purchased building from Siri Ltd for ₹8,00,000. The consideration was paid by issue of
6%debentures of ₹100 each at a discount of 20%. The 6% Debentures account is credited with:
a) ₹10,40,000 b) ₹10,00,000 c) ₹9,60,000 d) ₹6,40,000
Q.12 Which of the following statements is incorrect about debentures?
a) Interest on debentures is an appropriation of profits.
b) Debenture holders are the creditors of a company.
c) Debentures can be issued to vendors at discount.
d) Interest is not paid on Debentures issued as Collateral Security.
Q.13 A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1
premium) has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were
and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued?
a) 3,000 shares b) 1,000 shares c) 2,000 shares d) 1,500 shares
Q.14 Forfeiture of shares leads to reduction of _________________Capital.
A. Authorised B. Issued C. Subscribed D. Called up
Q.15 Moon ltd. issued 40,000, 10% debentures of ₹100 each at certain rate of discount and were to be
redeemed at20% premium. Exiting balance of Securities premium before issuing of these debentures
was ₹12,00,000 and after writing off loss on issue of debentures , the balance in Securities Premium
was ₹2,00,000. At what rate of discount these debentures were issued?
A. 10% B. 5% C. 25% D. 15%
Q.16 Mohit had applied for 900 shares, and was allotted in the ratio 3 : 2. He had paid application
money of ₹ 3 per share and couldn’t pay allotment money of ₹ 5 per share. First and Final call of ₹ 2
per share was not yet made by the company. His shares were forfeited. The following entry will be
passed N Share Capital A/c Dr. X
To Share Forfeited A/c Y
To Share Allotment A/c Z
Here X, Y and Z are:
A. ₹ 6,000; ₹ 2,700; ₹ 3,300 B. ₹ 4,800; ₹ 2,700; ₹ 2,100
C. ₹ 4,800; ₹ 1,800; ₹ 3,000 D. ₹ 6,000; ₹ 1,800; ₹ 4,200
Q.17 A company forfeited 6,000 shares of ₹ 10 each, on which only application money of ₹ 3 has been
paid. 4,000 of these shares were re-issued at ₹ 12 per share as fully paid up. Amount of Capital
Reserve will be _______.
A. ₹ 18,000 B. ₹ 12,000 C. ₹ 30,000 D. ₹ 24,000
Q.18 On 1st April 2019 a company took a loan of ₹80,00,000 on security of land and building. This loan
was further secured by issue of 40,000, 12% Debentures of ₹100 each as collateral security. On 31st
March 2024 the company defaulted on repayment of the principal amount of this loan consequently
on 1st April 2024 the land and building were taken over and sold by the bank for ₹70,00,000. For the
balance amount debentures were sold in the market on 1st May 2024. From which date would the
interest on debentures become payable by the company?
A. 1st April 2019 . B. 31st March 2024 . C. 1st April 2024. D. 1st May 2024.
Q.19 Shares issued as sweat equity can be (I) Issued at par. (ii) Issued at discount. (iii) Issued at a
premium. Which of the following is correct?
A. Only (i) is correct. B. Both (i) and (iii) are correct.
C. All are correct. D. Only (ii) is correct
Q.20 2,000 shares allotted to Ms. Regal, on which ₹ 80 each called up and ₹ 50 paid were forfeited and
reissued for ₹ 70 each as ₹ 90 paid up. Amount transferred to capital reserve A/c is
A. ₹ 1,00,000 B. ₹ 60,000 C. ₹ 40,000 D. ₹ 20,000
Q.21 Anshika Ltd. issued applications for 2,00,000 equity shares of ₹10 each, at a premium of ₹4 per
share. The amount was payable as follows: On application ₹ 6 (including ₹2 premium) On allotment ₹
7 (including ₹2 premium) Balance on first and final call Applications for 3,00,000 shares were received.
Allotment was made to all the applicants on pro-rata basis. Mehak to whom 400 shares were allotted,
failed to pay allotment and call money. Khushboo who had applied for 300 shares failed to pay call
money. These shares were forfeited after Final call. 400 of the forfeited shared (including all shares of
Khushboo) were reissued @ ₹8 per share as fully paid up. Pass necessary journal entries in the books
of Anshika Ltd. for the above transactions by opening calls in arrears and calls in advance account
wherever necessary.
