In NCERT Class 12 Accountancy Chapter 5, titled "Accounting for Share Capital", students learn about the fundamental principles of accounting related to share capital. The chapter covers the types of shares, issue of shares, over-subscription and under-subscription, calls in arrears, calls in advance, and forfeiture and reissue of shares.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Accountancy Chapter 5 MCQs and previous year questions for detailed practice of NCERT Class 12 Accounting for Share Capital.
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NCERT Class 12 Accountancy Chapters
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CUET Free Master Classes:
Class 12 Accountancy Chapter 5 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Accountancy Chapter 5: Accounting for Share Capital. For the full set of 50 questions, download the PDF using the link provided below.
1- The paid-up share capital of ―One Person Company‖ cannot be more then:
(a) Rs. 50 Lakhs (b) Rs. 1 Crore (c) Rs. 1.5 Crore (d) Rs. 2 Crore
2. Which of the following statements is true for ‗Reserve Capital‘?
(a) It is a portion of the uncalled capital to be called only in the event of winding up of the company.
(b) It is a part of the subscribed capital which has been called-up on the shares.
(c) It is that portion of the called-up capital which has been actually received from the shareholders.
(d) It is that part of the authorised capital that is actually issued to the public for subscription.
3. A portion of the uncalled capital to be called only in the event of winding up of the company is termed as:
(a) Reserve Capital (b) Capital Reserve (c) Uncalled Capital (d) Unpaid Capital
(CBSE 2023, 1M)
4. Which of the following statement is correct regarding subscribed capital?
(a) It is the amount of share capital which a company is authorised to issue by its Memorandum of Association.
(b) It is that part of authorised capital which is actually issued to the public for subscription.
(c) It is that part of the issued capital which has been actually subscribed by the public.
(d) It is that part of the called-up capital which has been actually received from shareholders.
5. Which of the following statements does not relate to ‗Reserve Capital‘?
(a) It is part of uncalled capital of a company.
(b) It cannot be used during the lifetime of a company.
(c) It can be used for writing off capital losses.
(d) It is part of subscribed capital.
Class 12 Accountancy Chapter 5 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 5 sample subjective questions for Class 12 Accountancy Chapter 5: Accounting for Share Capital. To access all questions, download the PDF from the link provided below.
- Using imaginary figures, present the share capital of a company in its Balance Sheet according to the provisions of Schedule III of the Companies Act, 2013.
(CBSE 2019, 3M)
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- NK Ltd., a truck manufacturing company, is registered with an authorised capital of Rs.1,00,00,000 divided into equity shares of Rs.100 each. The subscribed and paid-up capital of the company is Rs.50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially-abled children of the area. It is planning to provide them employment in its various production units and industries in the neighbourhood area. To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wants to communicate.
(CBSE 2018, 3M)
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- Akash Ltd. is registered with an authorized Capital of Rs.8,00,00,000 divided into equity shares of Rs.10 each. Subscribed and fully paid-up share capital of the company was Rs.4,00,00,000. For providing employment to the local youth and for the development of the rural areas of the Jammu and Kashmir State the company decided to set up a food processing unit in Anantnag district. The Company also decided to open skill development centres in Ladakh, Srinagar and Poonch. To meet its new financial requirements the company decided to issue 1,00,000 equity shares of Rs.10 each and 10,000, 9% debentures of Rs.100 each. The debentures were redeemable after five years. The issue of equity shares and debentures was fully subscribed. A shareholder holding 1,000 shares failed to pay the final call of Rs.2 per share.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wishes to propagate.
(CBSE 2017, 3M)
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- Pawan Ltd. was registered with an authorised capital of Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10 each. The company offered to the public for subscription, 80,000 equity shares. The amount per share was payable as follows:
On application - Rs. 3,
On allotment - Rs. 2
On first call - Rs. 3 and
On second and final call the balance
The issue was fully subscribed and all amounts due were received except the first and final call money on 2,000 shares allotted to Chavi. Her shares were forfeited.
Present the Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.
(CBSE 2023, 4M)
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- Sandesh Ltd. has an authorised capital of Rs. 30,00,000 divided into equity shares of Rs. 10 each. The company invited applications for issuing 70,000 shares. Applications for 69,000 shares were received. All calls were made and duly received except the first and final call of Rs. 2 per share on 3,000 shares. These shares were forfeited.
(a) Present the 'Share Capital' in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013
(b) Also prepare 'Notes to Accounts for the same.
(CBSE 2023, 4M)
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Sub Areas of Chapter 5: Accounting for Share Capital
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Chapter Name
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Sub Topics
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Accounting for Share Capital
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5.1 Introduction
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5.2 Types of Share Capital
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5.3 Issue of Shares
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5.4 Over-subscription and Under-subscription
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5.5 Calls in Arrears and Calls in Advance
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5.6 Forfeiture of Shares
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5.7 Reissue of Forfeited Shares
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Review of NCERT Class 12 Accountancy Chapter 5
In NCERT Class 12 Accountancy Chapter 5, "Accounting for Share Capital," students learn about the key aspects of share capital, including its types, issue, and related adjustments. This chapter is crucial for understanding the corporate financial structure and the accounting treatment of share transactions.
Mastering this chapter helps students gain insights into company accounts and prepares them for questions in CBSE, CUET, and other competitive exams. By practicing MCQs and subjective questions, students can strengthen their concepts effectively.
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