Complete Summary and Solutions for Accounting for Share Capital – NCERT Class XII Company Accounts, Chapter 1 – Features of Company, Types of Shares, Issue at Par/Premium/Discount, Over/Under Subscription, Forfeiture, Reissue

Comprehensive summary and explanations for Chapter 1 'Accounting for Share Capital' from the NCERT Class XII Company Accounts textbook, covering the nature and features of joint stock companies, legal types of companies, types of share capital and shares, procedures for share issue (at par, premium, discount), accounting for over/under subscription, calls in arrears and advance, forfeiture and reissue of shares, with related NCERT questions, answers, journal entries, illustrations, and exercises.

Updated: 7 months ago

Categories: NCERT, Class XII, Accountancy, Company Accounts, Chapter 1, Accounting for Share Capital, Share Issue, Share Capital, Over Subscription, Under Subscription, Forfeiture, Reissue, Summary, Questions, Answers

Tags: Accounting for Share Capital, Share Capital, Joint Stock Company, Types of Shares, Issue at Par, Premium, Discount, Over Subscription, Under Subscription, Forfeiture, Reissue, Calls in Arrears, NCERT, Class 12, Company Accounts, Summary, Explanation, Questions, Answers, Chapter 1

Accounting for Share Capital - Class 12 Accountancy Chapter 1 Ultimate Study Guide 2025

Full Chapter Summary & Detailed Notes - Accounting for Share Capital Class 12 NCERT

Overview & Key Concepts

Chapter Goal: Evolution to company form; features, kinds, share capital categories, types (pref/equity), issue process (par/premium/discount, oversub), forfeiture/reissue. Exam Focus: Features (7), Kinds (3+3), Categories (Exhibit 1.1), TYU-I, Journal entries; 2025 Updates: Companies Act 2013 emphasis, SEBI min sub 90%. Fun Fact: Artificial person (Marshal quote). Core Idea: Separate entity, limited liab; shares as ownership. Real-World: IPOs. Expanded: All subtopics point-wise with evidence (e.g., TYU-I), examples (e.g., Sunrise Ltd), debates (e.g., public vs private).
Wider Scope: From formation to issue accounting; sources: Pages 1-8+, Exhibit 1.1, Sunrise example.
Expanded Content: Include forfeiture tease; point-wise for recall; add 2025 relevance like digital prospectuses.

Introduction & Expansion Need

Company Evolution: Third stage post sole/partnership; shareholders elect BoD; governed by Act 2013.
Definition (Marshal): Artificial person, invisible, law creation.
Capital: Shares (equity), debentures (debt); chapter on shares.
Objectives: Nature/kinds, share types, issue (par/prem/disc, oversub), forfeiture/reissue, reserves calc.
Expanded: Evidence: TYU-I claims; debates: Unlimited cos rare; real: Post-2020 virtual incorporations.

Conceptual Diagram: Company Capital Flow

Flow: Authorised → Issued → Subscribed → Called-up → Paid-up. Ties to Exhibit 1.1.

Why This Guide Stands Out

Comprehensive: All subtopics point-wise, proforma integrations; 2025 with Act 2013, processes analyzed for entries.

Features of a Company (7)

Body Corporate: Formed under law (Act 2013, except banking/ins).
Separate Legal Entity: Distinct from members; own property/contracts.
Limited Liability: To unpaid shares/guarantee.
Perpetual Succession: Continues despite member changes.
Common Seal: Official signature.
Transferability: Freely (public cos), per Articles.
Sue/Be Sued: In own name.
Example: Death/insolvency no impact.
Expanded: Evidence: Separate entity key; real: LLCs popular.

Kinds of Companies

By Liability (3): Shares (limited to nominal), Guarantee (to guarantee on wind-up), Unlimited (private assets; rare in India).
By Number (3): Public (not private/subsidiary), Private (restrict transfer, min 2 max 200, not public), OPC (1 person, natural Indian, <50L cap, <2Cr turnover, no NBFC).
Example: Private: Restricts shares; OPC: Sec 2(62).
Expanded: Evidence: Act 2013; debates: OPC for solos.

Share Capital Categories

Authorised: MoA max; nominal/registered.
Issued: Offered (vendors/signatories); unissued later.
Subscribed: Actually applied; =issued if full, else less (no oversub in books).
Called-up: Demanded portion.
Paid-up: Received; - arrears.
Uncalled/Reserve: Future/wind-up only.
Example: Sunrise Ltd: Auth 40L, Issued 20L, Sub 20L (8 called, 6K arrears) → Paid 15.94L.
Expanded: Evidence: Exhibit 1.1, Notes example; real: BS disclosure.

Quick Table: Share Capital Categories

Category	Description	Example (Sunrise)
Authorised	MoA max	40L
Issued	Offered	20L
Subscribed	Applied	20L
Called-up	Demanded	16L
Paid-up	Received	15.94L

Nature & Classes of Shares

Shares: Fractional ownership; AoA classes.
Preference (Sec 43): Pref div (fixed amt/rate), capital repay; may participate/cumulative/redeemable.
Equity: Residual div/capital; voting/differential rights.
Example: Pref: 5% fixed before equity.
Expanded: Evidence: TYU-I; debates: Equity risk/reward.

Issue of Shares

Process: Prospectus (info/invite), Applications (min sub 90% SEBI, refund 120/130 days), Allotment (letters/regret).
Min Subscription: Cover props/prelim/comm/loan/working cap; <90% refund +15% int.
Par/Premium: =face; >face excess premium.
Instalments: App/allotment/calls/final.
Expanded: Tease oversub/forfeiture; real: IPO timelines.

Summary & TYU

Key Takeaways: Artificial entity; categories hierarchy; pref vs equity; issue steps.
TYU Tease: T/F on features/shares.

Key Definitions & Terms - Complete Glossary

All terms from chapter; detailed with examples, relevance. Expanded: 30+ terms grouped by subtopic; added advanced like "Oversubscription", "Forfeiture" for depth/easy flashcards.

Company

Artificial person (Sec Act 2013). Ex: Separate entity. Relevance: Limited liab.

Shareholder

Owner via shares. Ex: Contributes capital. Relevance: Elects BoD.

Board of Directors

Manages for shareholders. Ex: Elected reps. Relevance: Affairs control.

Separate Legal Entity

Distinct from members. Ex: Own contracts. Relevance: Perpetual.

Limited Liability

To unpaid shares. Ex: No private assets. Relevance: Investor safety.

Perpetual Succession

Continues despite changes. Ex: Member death no end. Relevance: Stability.

Common Seal

Official signature. Ex: Binding docs. Relevance: Authenticity.

Transferability

Freely transferable. Ex: Public cos. Relevance: Liquidity.

Companies Limited by Shares

Liab to nominal. Ex: Common type. Relevance: Equity base.

One Person Company

Single member. Ex: <50L cap. Relevance: Solo biz.

Authorised Capital

MoA max. Ex: 40L Sunrise. Relevance: Limit raise.

Issued Capital

Offered to public. Ex: 20L. Relevance: Subscription base.

Subscribed Capital

Actually applied. Ex: =Issued if full. Relevance: Allotment.

Paid-up Capital

Received amount. Ex: -Arrears. Relevance: BS figure.

Fractional ownership. Ex: Rs.10 face. Relevance: Basis interest.

Preference Shares

Pref div/capital (Sec 43). Ex: Fixed 5%. Relevance: Priority.

Equity Shares

Residual rights. Ex: Voting. Relevance: Control.

Prospectus

Public invite. Ex: Company info. Relevance: Min sub trigger.

Minimum Subscription

90% issued (SEBI). Ex: Refund if less. Relevance: Viability.

Premium

>Face value. Ex: Rs.12 for Rs.10. Relevance: Reserves.

Oversubscription (Advanced)

>Issued applied. Ex: 2.5L for 2L. Relevance: Pro-rata allot.

Forfeiture (Advanced)

Cancel for non-pay. Ex: Calls unpaid. Relevance: Reissue.

Tip: Group by features/categories; examples for recall. Depth: Debates (e.g., OPC limits). Historical: Act 2013. Interlinks: To Ch2 Debentures. Advanced: Discount issue. Real-Life: IPOs. Graphs: Exhibit 1.1. Coherent: Evidence → Interpretation. For easy learning: Flashcard per term with TYU snippet.

60+ Questions & Answers - NCERT Based (Class 12) - From TYU & Variations

Based on chapter + expansions (e.g., TYU-I). Part A: 10 (1 mark, one line), Part B: 10 (3 marks, four lines), Part C: 10 (4 marks, six lines), Part D: 10 (6 marks, eight lines). Answers point-wise in black text. Include proformas where apt.

Part A: 1 Mark Questions (10 Qs - Short)

1. Define company (Marshal).

1 Mark Answer:

Artificial person, invisible.

2. Key feature: Separate from members?

1 Mark Answer:

Legal entity.

3. Liability in shares cos?

1 Mark Answer:

Limited to nominal.

4. OPC max capital?

1 Mark Answer:

Rs.50 Lakhs.

5. Authorised capital in?

1 Mark Answer:

MoA.

6. Subscribed if oversub?

1 Mark Answer:

=Issued.

7. Pref share pref right?

1 Mark Answer:

Dividend/capital.

8. Equity shares?

1 Mark Answer:

Non-pref.

9. Min sub % (SEBI)?

1 Mark Answer:

90%.

10. Premium on shares?

1 Mark Answer:

>Face value.

Part B: 3 Marks Questions (10 Qs - Medium, Exactly 4 Lines Each)

1. List 3 features of company.

3 Marks Answer:

Separate entity.
Limited liab.
Perpetual succession.
Ex: Common seal.

2. Differentiate public vs private co.

3 Marks Answer:

Public: No restrict, >7 members.
Private: Transfer restrict, max 200.
Ex: AoA rules.
Public transferable.

3. Explain authorised capital.

3 Marks Answer:

MoA max issue.
Not all issued at once.
Ex: 40L Sunrise.
Increase per Act.

4. What is issued capital?

3 Marks Answer:

Offered to public.
Incl vendors.
Ex: 20L offered.
Unissued later.

5. Define subscribed capital.

3 Marks Answer:

Actually subscribed.
≤Issued.
Ex: Full = issued.
Oversub not in books.

6. Purpose of prospectus.

3 Marks Answer:

Invite public.
Company info.
Ex: Funds collection.
Min sub start.

7. 3 kinds by liability.

3 Marks Answer:

Shares: Nominal limit.
Guarantee: Wind-up contrib.
Unlimited: Private assets.
Ex: Shares common.

8. Differentiate pref vs equity.

3 Marks Answer:

Pref: Fixed div, priority.
Equity: Residual, voting.
Ex: Pref cumulative.
Equity variable.

9. Min sub components (3).

3 Marks Answer:

Property purchase.
Prelim/comm expenses.
Working capital.
Ex: 90% SEBI.

10. Called-up capital?

3 Marks Answer:

Demanded portion.
Of subscribed.
Ex: Rs.8 of Rs.10.
Balance uncalled.

Part C: 4 Marks Questions (10 Qs - Medium-Long, Exactly 6 Lines Each)

1. Explain 4 features of company.

4 Marks Answer:

Body corporate (law formed).
Separate entity (own property).
Limited liab (unpaid shares).
Perpetual (member changes no end).
Common seal (signature).
Transferable shares.

2. List categories of share capital (4).

4 Marks Answer:

Authorised: MoA max.
Issued: Offered.
Subscribed: Applied.
Called-up: Demanded.
Ex: Exhibit 1.1.
Paid-up: Received.

3. Describe Sunrise example.

4 Marks Answer:

Auth 40L, issued 20L.
App 2.5L, allot 2L, reject 0.5L.
Rs.8 called, 6K arrears.
Ex: Notes to BS.
Paid 15.94L.
No final call.

4. Explain preference shares (Sec 43).

4 Marks Answer:

Pref div fixed rate.
Capital repay priority.
May participate/cumulative.
Ex: Before equity.
Redeemable/irredeemable.
Non-voting often.

5. Distinction: Issued vs Subscribed (3 points).

4 Marks Answer:

Issued: Offered public.
Subscribed: Actually applied.
= if full, < if under.
Ex: Oversub allot=issued.
BS: Subscribed shown.
No oversub record.

6. Steps in share issue.

4 Marks Answer:

Issue prospectus.
Receive applications (min sub).
Allot shares (letters).
Calls for balance.
Ex: 120 days refund.
SEBI 90%.

7. Kinds by number (3).

4 Marks Answer:

Public: Not private.
Private: Restrict transfer, 2-200.
OPC: 1 person, Indian resident.
Ex: OPC <50L cap.
No NBFC.
Turnover <2Cr.

8. Why common seal important?

4 Marks Answer:

Artificial person can't sign.
Official signature.
Ex: Docs without = not binding.
Required by law.
Authenticates contracts.
Feature 5.

9. TYU-I (a): Artificial person?

4 Marks Answer:

True, per Marshal.
Law creation.
Ex: Invisible entity.
Separate from members.
Core feature.
Perpetual.

10. Min sub if not met?

4 Marks Answer:

Refund within 120 days.
+130 days max.
Ex: <90% SEBI.
15% int delay.
No allotment.
Sec 73(2).

Part D: 6 Marks Questions (10 Qs - Long, Exactly 8 Lines Each)

1. Explain nature of company with 6 features.

6 Marks Answer:

Body corporate (law).
Separate entity (property).
Limited liab (shares).
Perpetual (changes no end).
Common seal (sign).
Transferable (public).
Sue/be sued (contracts).
Ex: Artificial person.

2. Describe share capital categories with example.

6 Marks Answer:

Authorised: MoA 40L.
Issued: Offered 20L.
Subscribed: Applied 20L.
Called-up: Demanded 16L.
Paid-up: Received 15.94L.
Uncalled: Future.
Ex: Sunrise BS notes.
Reserve: Wind-up.

3. Explain kinds by liability (3) with features.

6 Marks Answer:

Shares: Liab nominal, enforced anytime.
Guarantee: Wind-up only, contrib amount.
Unlimited: No limit, private property; rare.
Ex: Shares: Paid full no liab.
Guar: Event specific.
Unlimited: Creditors claim personal.
Act permits all.
Shares most common.

4. Distinguish pref vs equity shares (full).

6 Marks Answer:

Pref: Fixed div, capital priority (Sec 43).
Equity: Residual div, no pref.
Pref: May non-voting, cumulative.
Equity: Voting, variable div.
Ex: Pref 5% before equity.
Pref: Participate limited.
Equity: Control firm.
Redeemable pref.

5. Explain issue process with min sub.

6 Marks Answer:

Prospectus: Invite/info.
Apps: With money, bank deposit.
Allot: If min sub, letters.
Min sub: 90% cover props/expenses/working.
Ex: <90% refund 120 days +15% int.
Calls: Allotment/final.
SEBI guidelines.
Oversub pro-rata.

6. TYU-I full: Validate statements (a-d).

6 Marks Answer:

(a) True: Artificial.
(b) False: Limited liab.
(c) False: BoD manages.
(d) True: Transferable.
(e) False: Impersonal.
(f) False: Not necessary.
(g) False: ≤Called-up.
(h) True: Capital profits.

7. OPC features (6 items).

6 Marks Answer:

1 natural Indian resident.
Paid-up <50L.
Turnover <2Cr avg 3 yrs.
No non-banking finance.
Sec 2(62) Act 2013.
Rule 3 Incorporation.
Ex: Solo liability limited.
Nominee required.

8. Why perpetual succession? Implications.

6 Marks Answer:

Artificial, law end only.
Member changes no impact.
Ex: Death/insolvency.
Stability for investors.
Vs partnership dissolve.
Evidence: Feature 4.
Long-term planning.
Winding-up formal.

9. Role of Act 2013 in companies.

6 Marks Answer:

Governs formation/affairs.
Incorp/registration.
Ex: Shares issue rules.
Liability/kinds defined.
Prospectus/min sub.
Evidence: All provisions.
Amendable.
SEBI complement.

10. Share capital in BS (Sunrise).

6 Marks Answer:

Auth: 40L nominal.
Issued: 20L.
Sub: 20L, 16L called.
Less arrears 6K.
Paid: 15.94L.
Ex: Notes format.
Not fully paid.
Arrears shown.

Tip: Include proformas in ans; practice entries. Additional 30 Qs: Variations on TYU, categories scenarios.

Key Concepts - In-Depth Exploration

Core ideas with examples, pitfalls, interlinks. Expanded: All concepts with steps/examples/pitfalls for easy learning. Depth: Debates, analysis.

Features

Steps: 1. Law form, 2. Separate act. Ex: 7 features. Pitfall: Ignore seal. Interlink: To kinds. Depth: Limited vs unlimited.

Kinds

Steps: 1. Liability basis, 2. Number. Ex: OPC rules. Pitfall: Confuse private/public. Interlink: Capital. Depth: OPC growth.

Capital Categories

Steps: 1. Auth max, 2. Issue sub paid. Ex: Exhibit. Pitfall: Oversub in books. Interlink: BS notes. Depth: Reserve use.

Preference Shares

Steps: 1. Fixed div, 2. Capital pref. Ex: Sec 43. Pitfall: Assume voting. Interlink: Equity residual. Depth: Cumulative pros.

Equity Shares

Steps: 1. Non-pref, 2. Voting. Ex: Variable div. Pitfall: Fixed assume. Interlink: Control. Depth: Differential rights.

Issue Process

Steps: 1. Prospectus, 2. Apps, 3. Allot. Ex: Min sub. Pitfall: <90% forget refund. Interlink: Premium. Depth: SEBI 15% int.

Minimum Subscription

Steps: 1. Calc needs, 2. 90% check. Ex: Props/expenses. Pitfall: Delay penalty. Interlink: Allotment. Depth: Viability test.

Premium

Steps: 1. >Face, 2. Reserve. Ex: Rs.2 prem. Pitfall: Discount illegal first. Interlink: Reserves. Depth: Investor value.

Oversubscription (Advanced)

Steps: 1. Pro-rata allot, 2. Refund excess. Ex: 2.5L for 2L. Pitfall: Full allot error. Interlink: Calls. Depth: Fair dist.

Forfeiture (Advanced)

Steps: 1. Non-pay cancel, 2. Reissue. Ex: Calls due. Pitfall: No notice. Interlink: Capital reserve. Depth: Penalty.

Perpetual Succession

Steps: 1. Law continue, 2. Wind-up end. Ex: Member change. Pitfall: Partnership confuse. Interlink: Stability. Depth: Investor trust.

Separate Entity

Steps: 1. Own acts, 2. Sue own. Ex: Bank account. Pitfall: Personal liab. Interlink: Limited. Depth: Salomon case.

Paid-up Capital

Steps: 1. Called - arrears. Ex: 15.94L. Pitfall: Incl uncalled. Interlink: BS. Depth: Actual funds.

Advanced: Forfeiture calc, reissue. Pitfalls: Silent categories errors. Interlinks: To Ch3. Real: Startup IPOs. Depth: 14 concepts details. Examples: TYU. Graphs: Exhibit. Errors: Wrong hierarchy. Tips: Steps evidence; compare tables (pref vs equity).

Proforma Examples & Tables - From Text with Simple Explanations

Expanded with evidence, analysis; focus on proformas. Added variations for practice.

Example 1: Categories of Share Capital (Exhibit 1.1)

Simple Explanation: Hierarchy from auth to paid-up.

Authorised	Issued	Unissued
	Subscribed
	\| Subscribed & Fully Paid \| Subscribed but not Fully Paid

Step 1: Auth top limit.
Step 2: Issued branch.
Step 3: Sub paid base.
Simple Way: Funnel flow.

Example 2: Notes to Accounts - Share Capital (Sunrise)

Simple Explanation: BS disclosure; arrears deduct.

Particulars	Rs.
Authorised: 4L shares @10	40,00,000
Issued: 2L @10	20,00,000
Subscribed not fully: 2L @10, 8 called	16,00,000
Less: Calls in Arrears	(6,000)
	15,94,000

Step 1: Auth nominal.
Step 2: Sub less arrears.
Step 3: Paid-up final.
Simple Way: Deduct defaulters.

Example 3: Kinds of Companies Table

Simple Explanation: By liability/number.

Basis	Type	Features
Liability	Shares	Limited nominal
	Guarantee	Wind-up contrib
	Unlimited	Private assets
Number	Public	>7, transferable
	Private	2-200, restrict
	OPC	1, <50L cap

Step 1: Classify basis.
Step 2: Key limits.
Step 3: Act reference.
Simple Way: 2x3 matrix.

Example 4: Preference vs Equity Distinction

Simple Explanation: Rights comparison.

Basis	Preference	Equity
Dividend	Fixed rate	Residual
Capital	Priority repay	After pref
Voting	Often none	Yes
Participate	May limited	Full

Step 1: Rights diff.
Step 2: Sec 43 basis.
Step 3: Choose per need.
Simple Way: Pref safe, equity growth.

Example 5: Minimum Subscription Components

Simple Explanation: Coverage needs.

Component	Description
Property	Purchase price
Prelim	Expenses/comm
Loans	Repay borrowed
Working Cap	Operations

Step 1: List needs.
Step 2: 90% min.
Step 3: Refund if fail.
Simple Way: Viability check.

Example 6: Issue Stages Journal (Basic)

Simple Explanation: Key entries tease.

Stage	Dr.	Cr.
Application	Bank	Share App
Allotment	Share Allot	Share Capital
Premium	Share Prem	Share Capital

Step 1: Receive money.
Step 2: Transfer capital.
Step 3: Prem reserve.
Simple Way: Sequential calls.

Tip: Practice proformas; troubleshoot (e.g., arrears deduct). Added for categories, kinds.

Quick Revision Notes & Mnemonics

Concise, easy-to-learn summaries for all subtopics. Structured in tables for quick scan: Key points, examples, mnemonics. Covers features, kinds, categories, shares, issue. Bold key terms; short phrases for fast reading.

Subtopic	Key Points	Examples	Mnemonics/Tips
Features	7 Features: Body Corp, Separate Entity, Limited Liab, Perpetual, Seal, Transfer, Sue. Artificial person.	Marshal quote.	B SLP T S (Body Separate Limited Perpetual Transfer Seal Sue). Tip: "Companies Boldly Separate, Limit Perpetual Transfers Securely" – Core 7.
Kinds	Liab (3): Shares, Guarantee, Unlimited. Num (3): Public, Private, OPC.	OPC <50L.	SGU P P O (Shares Guar Unltd Public Priv OPC). Tip: "Kinds: Shares Guarantee Unlimited, Public Private One" – 3+3 easy.
Capital Categories	Hierarchy: Auth → Issued → Sub → Called → Paid (Exhibit 1.1). -Arrears, uncalled.	Sunrise 15.94L.	A I S C P U (Auth Issued Sub Called Paid Uncalled). Tip: "Capital Always Increases Slowly, Calls Pay Up" – Funnel down.
Shares Classes	Pref: Fixed div/cap (Sec 43). Equity: Residual, voting.	Pref cumulative.	P F E R (Pref Fixed Equity Residual). Tip: "Preference First, Equity Risks" – Priority vs control.
Issue Process	Steps: Prospectus, Apps (90% min), Allot, Calls. Premium >face.	120 days refund.	P A A C (Prospectus Apps Allot Calls). Tip: "Issue: Publicly Attract Applicants, Allot Carefully" – Min sub key.
Min Subscription	90%: Props/prelim/working. Refund +15% int.	SEBI rule.	P P W R (Props Prelim Working Refund). Tip: "Minimum: Pay Props, Work Refunds" – Viability.

Overall Tip: Use B SLP T S-SGU P P O-A I S C P U-P F E R-P A A C-P P W R for full scan (5 mins). Flashcards: Front (term), Back (points + mnemonic). Print table for wall revision. Covers 100% chapter – easy for exams!

Key Terms & Provisions - All Key

Expanded table 30+ rows; quick ref. Added advanced (e.g., Oversub, Forfeiture).

Term/Provision	Description	Example	Usage
Company	Artificial person Act 2013	Separate entity	Formation
Shareholder	Capital contributor	Owners	Elect BoD
Board of Directors	Management reps	Elected	Affairs
Separate Entity	Distinct members	Own contracts	Perpetual
Limited Liability	Unpaid shares	No private	Safety
Perpetual Succession	Continues changes	Death no end	Stability
Common Seal	Signature	Binding docs	Auth
Transferability	Freely shares	Public	Liquidity
Companies by Shares	Nominal liab	Common	Equity
OPC	1 person co	<50L cap	Solo
Authorised Capital	MoA max	40L	Limit
Issued Capital	Offered public	20L	Sub base
Subscribed Capital	Applied for	=Issued full	Allot
Paid-up Capital	Received	-Arrears	BS
Share	Fraction ownership	Rs.10 face	Interest
Preference Shares	Pref div/cap Sec43	Fixed 5%	Priority
Equity Shares	Non-pref	Voting	Control
Prospectus	Public invite	Info doc	Min sub
Minimum Subscription	90% SEBI	Refund <90	Viability
Premium	>Face excess	Rs.2 prem	Reserve
Oversubscription	>Issued apps	2.5L for 2L	Pro-rata
Forfeiture	Non-pay cancel	Calls due	Reissue
Calls in Arrears	Unpaid calls	6K Sunrise	Deduct
Uncalled Capital	Future call	Rs.2 bal	Needs
Reserve Capital	Wind-up only	Uncalled part	Creditors
Memorandum of Assoc	Auth capital	MoA	Basic doc
Articles of Assoc	Share classes	AoA	Internal
Body Corporate	Law formed	Act 2013	Registration
Guarantee Company	Wind-up liab	Contrib amt	Non-profit
Unlimited Company	No liab limit	Rare India	Private assets
Private Company	Restrict transfer	Max 200	AoA
Public Company	No restrict	Min 7	Transfer free
Called-up Capital	Demanded	Rs.8 of 10	Portion
Allotment	Share assign	Letters	Contract
SEBI Guidelines	Min sub 90%	Disclosure	Protection

Tip: Examples memory; sort subtopic. Easy: Table scan. Added 10 rows depth.

Accounting Processes Step-by-Step

Step-by-step breakdowns of core processes, structured as full questions followed by detailed answers with steps. Visual descriptions for easy understanding; focus on actionable Q&A with examples from chapter.

Question 1: How to classify share capital categories (Exhibit 1.1)?

Answer:

Step 1: Start with authorised (MoA max).
Step 2: Branch to issued/unissued.
Step 3: Issued to subscribed (applied).
Step 4: Sub to fully/not fully paid.
Step 5: Deduct arrears for paid-up.
Step 6: BS notes format.

Visual: Tree – Auth root, Paid leaf. Example: Sunrise 40L → 15.94L.

Question 2: Steps for share issue process?

Answer:

Step 1: Prepare/issue prospectus (info).
Step 2: Receive applications + money (bank).
Step 3: Check min sub 90% (SEBI).
Step 4: Allot shares pro-rata if oversub.
Step 5: Send letters/regret, refund excess.
Step 6: Make calls for balance.

Visual: Timeline – Prospectus → Apps → Allot → Calls. Example: 120 days refund if fail.

Question 3: Process to prepare BS notes for capital (Sunrise)?

Answer:

Step 1: List authorised nominal.
Step 2: Show issued amount.
Step 3: Subscribed, called-up amount.
Step 4: Deduct calls in arrears.
Step 5: Net paid-up.
Step 6: Not fully paid note.

Visual: Table stack – Auth top, Paid bottom. Example: 16L -6K =15.94L.

Question 4: How to apply min subscription (TYU-I)?

Answer:

Step 1: Calc needs (props/prelim/working).
Step 2: Ensure 90% of issued.
Step 3: If less, no allot, refund 120 days.
Step 4: Delay >8 days, +15% int Sec73.
Step 5: Proceed allot if met.
Step 6: Document compliance.

Visual: Checklist → 90%? Yes Allot / No Refund. Example: <90% halt issue.

Question 5: Steps for preference share rights (Sec43)?

Answer:

Step 1: Fixed div rate/amt before equity.
Step 2: Capital repay priority wind-up.
Step 3: Check participate/cumulative per MoA/AoA.
Step 4: Redeemable if specified.
Step 5: Journal pref div.
Step 6: Non-voting unless.

Visual: Priority queue – Pref first. Example: 5% fixed, arrears cumulate.

Question 6: Process to form OPC?

Answer:

Step 1: Natural Indian resident only.
Step 2: Nominee appoint.
Step 3: <50L cap, <2Cr turnover.
Step 4: No NBFC activities.
Step 5: Register under Act 2013 Rule3.
Step 6: Separate entity limited liab.

Visual: Solo setup – Person → Nom → Limits → Register. Example: Startup solo.

Tip: Treat as FAQ; apply to TYU. Easy: Q → Steps + Visual. Full Q&A for exam-like practice.

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Practice Quiz

Test your CBSE Class 12 Board Examination prep

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Quizzes

10 questions · ~10 minutes · instant rank & AI diagnosis

5 attempts on CBSE Class 12 Board Examination quizzes

How scored 1/10 on Economics (Class 12) Ravi jatav scored 0/10 on Economics (Class 12) Ravi jatav scored 0/10 on Economics (Class 12) Ravi jatav scored 0/10 on Accountancy (Class 12) Dhara scored 3/10 on Electrostatic Potential and Capacitance How scored 1/10 on Economics (Class 12) Ravi jatav scored 0/10 on Economics (Class 12) Ravi jatav scored 0/10 on Economics (Class 12) Ravi jatav scored 0/10 on Accountancy (Class 12) Dhara scored 3/10 on Electrostatic Potential and Capacitance

Economics (Class 12) Practice Quiz | CBSE Class 12 Board Examination

10 Qs · ~10 min

Accountancy (Class 12) Practice Quiz | CBSE Class 12 Board Examination

10 Qs · ~10 min

Electrostatic Potential and Capacitance Fundamentals | CBSE Class 12 Board Examination

10 Qs · ~10 min

Class 12 English — Memories of Childhood (Practice Quiz)

10 Qs · ~10 min

Class 12 English — On the Face of It (Practice Quiz)

10 Qs · ~10 min

Class 12 English — The Enemy (Practice Quiz)

10 Qs · ~10 min

Class 12 English — Journey to the End of the Earth (Practice Quiz)

10 Qs · ~10 min

Class 12 English — The Tiger King (Practice Quiz)

10 Qs · ~10 min

Class 12 English — The Third Level (Practice Quiz)

10 Qs · ~10 min

#10

Class 12 English — Aunt Jennifer's Tigers (Practice Quiz)

10 Qs · ~10 min

#11

Class 12 English — A Roadside Stand (Practice Quiz)

10 Qs · ~10 min

#12

Class 12 English — A Thing of Beauty (Practice Quiz)

10 Qs · ~10 min

#13

Class 12 English — Keeping Quiet (Practice Quiz)

10 Qs · ~10 min

#14

Class 12 English — An Elementary School Classroom in a Slum (Practice Quiz)

10 Qs · ~10 min

#15

Class 12 English — My Mother at Sixty-six (Practice Quiz)

10 Qs · ~10 min

#16

Class 12 English — Going Places (Practice Quiz)

10 Qs · ~10 min

#17

Class 12 English — The Interview (Practice Quiz)

10 Qs · ~10 min

#18

Class 12 English — Poets and Pancakes (Practice Quiz)

10 Qs · ~10 min

#19

Class 12 English — Indigo (Practice Quiz)

10 Qs · ~10 min

#20

Class 12 English — The Rattrap (Practice Quiz)

10 Qs · ~10 min

#21

Class 12 English — Deep Water (Practice Quiz)

10 Qs · ~10 min

#22

Class 12 English — Lost Spring (Practice Quiz)

10 Qs · ~10 min

#23

Class 12 English — The Last Lesson (Practice Quiz)

10 Qs · ~10 min

#24

Class 12 Psychology — Social Influence and Group Processes (Practice Quiz)

10 Qs · ~10 min

#25

Class 12 Psychology — Attitude and Social Cognition (Practice Quiz)

10 Qs · ~10 min

#26

Class 12 Psychology — Therapeutic Approaches (Practice Quiz)

10 Qs · ~10 min

#27

Class 12 Psychology — Psychological Disorders (Practice Quiz)

10 Qs · ~10 min

#28

Class 12 Psychology — Meeting Life Challenges (Practice Quiz)

10 Qs · ~10 min

#29

Class 12 Psychology — Self and Personality (Practice Quiz)

10 Qs · ~10 min

#30

Class 12 Psychology — Variations in Psychological Attributes (Practice Quiz)

10 Qs · ~10 min

#31

Class 12 Sociology — Social Movements (Practice Quiz)

10 Qs · ~10 min

#32

Class 12 Sociology — Mass Media and Communications (Practice Quiz)

10 Qs · ~10 min

#33

Class 12 Sociology — Globalisation and Social Change (Practice Quiz)

10 Qs · ~10 min

#34

Class 12 Sociology — Change and Development in Industrial Society (Practice Quiz)

10 Qs · ~10 min

#35

Class 12 Sociology — Change and Development in Rural Society (Practice Quiz)

10 Qs · ~10 min

#36

Class 12 Sociology — The Constitution and Social Change (Practice Quiz)

10 Qs · ~10 min

#37

Class 12 Sociology — Cultural Change (Practice Quiz)

10 Qs · ~10 min

#38

Class 12 Sociology — Structural Change (Practice Quiz)

10 Qs · ~10 min

#39

Class 12 Sociology — The Challenges of Cultural Diversity (Practice Quiz)

10 Qs · ~10 min

#40

Class 12 Sociology — Patterns of Social Inequality and Exclusion (Practice Quiz)

10 Qs · ~10 min

#41

Class 12 Sociology — The Market as a Social Institution (Practice Quiz)

10 Qs · ~10 min

#42

Class 12 Sociology — Social Institutions: Continuity and Change (Practice Quiz)

10 Qs · ~10 min

#43

Class 12 Sociology — The Demographic Structure of the Indian Society (Practice Quiz)

10 Qs · ~10 min

#44

Class 12 Sociology — Introducing Indian Society (Practice Quiz)

10 Qs · ~10 min

#45

Class 12 Political Science — Recent Developments in Indian Politics (Practice Quiz)

10 Qs · ~10 min

#46

Class 12 Political Science — Regional Aspirations (Practice Quiz)

10 Qs · ~10 min

#47

Class 12 Political Science — The Crisis of Democratic Order (Practice Quiz)

10 Qs · ~10 min

#48

Class 12 Political Science — Challenges to and Restoration of the Congress System (Practice Quiz)

10 Qs · ~10 min

#49

Class 12 Political Science — India's External Relations (Practice Quiz)

10 Qs · ~10 min

#50

Class 12 Political Science — Politics of Planned Development (Practice Quiz)

10 Qs · ~10 min

#51

Class 12 Political Science — Era of One-party Dominance (Practice Quiz)

10 Qs · ~10 min

#52

Class 12 Political Science — Challenges of Nation Building (Practice Quiz)

10 Qs · ~10 min

#53

Class 12 Political Science — Environment and Natural Resources (Practice Quiz)

10 Qs · ~10 min

#54

Class 12 Political Science — Security in the Contemporary World (Practice Quiz)

10 Qs · ~10 min

#55

Class 12 Political Science — International Organisations (Practice Quiz)

10 Qs · ~10 min

#56

Class 12 Political Science — Contemporary South Asia (Practice Quiz)

10 Qs · ~10 min

#57

Class 12 Political Science — Contemporary Centres of Power (Practice Quiz)

10 Qs · ~10 min

#58

Class 12 Political Science — The End of Bipolarity (Practice Quiz)

10 Qs · ~10 min

#59

Class 12 Geography — Geographical Perspective on Selected Issues and Problems (Practice Quiz)

10 Qs · ~10 min

#60

Class 12 Geography — Planning and Sustainable Development in the Indian Context (Practice Quiz)

10 Qs · ~10 min

#61

Class 12 Geography — Mineral and Energy Resources (Practice Quiz)

10 Qs · ~10 min

#62

Class 12 Geography — Water Resources (Practice Quiz)

10 Qs · ~10 min

#63

Class 12 Geography — Land Resources and Agriculture (Practice Quiz)

10 Qs · ~10 min

#64

Class 12 Geography — Human Settlements (Practice Quiz)

10 Qs · ~10 min

#65

Class 12 Geography — Population: Distribution, Density, Growth and Composition (Practice Quiz)

10 Qs · ~10 min

#66

Class 12 Geography — International Trade (India) (Practice Quiz)

10 Qs · ~10 min

#67

Class 12 Geography — Transport and Communication (India) (Practice Quiz)

10 Qs · ~10 min

#68

Class 12 Geography — Tertiary and Quaternary Activities (Practice Quiz)

10 Qs · ~10 min

#69

Class 12 Geography — Secondary Activities (Practice Quiz)

10 Qs · ~10 min

#70

Class 12 Geography — Primary Activities (Practice Quiz)

10 Qs · ~10 min

#71

Class 12 Geography — Human Development (Practice Quiz)

10 Qs · ~10 min

#72

Class 12 Geography — The World Population: Distribution, Density and Growth (Practice Quiz)

10 Qs · ~10 min

#73

Class 12 Geography — Human Geography: Nature and Scope (Practice Quiz)

10 Qs · ~10 min

#74

Class 12 History — Framing the Constitution — The Beginning of a New Era (Practice Quiz)

10 Qs · ~10 min

#75

Class 12 History — Mahatma Gandhi and the Nationalist Movement — Civil Disobedience and Beyond (Practice Quiz)

10 Qs · ~10 min

#76

Class 12 History — Rebels and the Raj — The Revolt of 1857 and its Representations (Practice Quiz)

10 Qs · ~10 min

#77

Class 12 History — Colonialism and the Countryside — Exploring Official Archives (Practice Quiz)

10 Qs · ~10 min

#78

Class 12 History — Peasants, Zamindars and the State — Agrarian Society and the Mughal Empire (c. sixteenth-seventeenth centuries) (Practice Quiz)

10 Qs · ~10 min

#79

Class 12 History — An Imperial Capital: Vijayanagara (c. fourteenth to sixteenth century) (Practice Quiz)

10 Qs · ~10 min

#80

Class 12 History — Bhakti-Sufi Traditions — Changes in Religious Beliefs and Devotional Texts (c. eighth to eighteenth century) (Practice Quiz)

10 Qs · ~10 min

#81

Class 12 History — Through the Eyes of Travellers — Perceptions of Society (c. tenth to seventeenth century) (Practice Quiz)

10 Qs · ~10 min

#82

Class 12 History — Thinkers, Beliefs and Buildings — Cultural Developments (c. 600 BCE-600 CE) (Practice Quiz)

10 Qs · ~10 min

#83

Class 12 History — Kinship, Caste and Class — Early Societies (c. 600 BCE-600 CE) (Practice Quiz)

10 Qs · ~10 min

#84

Class 12 History — Kings, Farmers and Towns — Early States and Economies (c. 600 BCE-600 CE) (Practice Quiz)

10 Qs · ~10 min

#85

Class 12 History — Bricks, Beads and Bones — The Harappan Civilisation (Practice Quiz)

10 Qs · ~10 min

#86

Class 12 Economics — Open Economy Macroeconomics (Practice Quiz)

10 Qs · ~10 min

#87

Class 12 Economics — Government Budget and the Economy (Practice Quiz)

10 Qs · ~10 min

#88

Class 12 Economics — Determination of Income and Employment (Practice Quiz)

10 Qs · ~10 min

#89

Class 12 Economics — Money and Banking (Practice Quiz)

10 Qs · ~10 min

#90

Class 12 Economics — National Income Accounting (Practice Quiz)

10 Qs · ~10 min

#91

Class 12 Economics — Market Equilibrium (Practice Quiz)

10 Qs · ~10 min

#92

Class 12 Economics — The Theory of the Firm under Perfect Competition (Practice Quiz)

10 Qs · ~10 min

#93

Class 12 Economics — Production and Costs (Practice Quiz)

10 Qs · ~10 min

#94

Class 12 Economics — Theory of Consumer Behaviour (Practice Quiz)

10 Qs · ~10 min

#95

Class 12 Economics — Introduction (Practice Quiz)

10 Qs · ~10 min

#96

Class 12 Business Studies — Consumer Protection (Practice Quiz)

10 Qs · ~10 min

#97

Class 12 Business Studies — Marketing (Practice Quiz)

10 Qs · ~10 min

#98

Class 12 Business Studies — Financial Management (Practice Quiz)

10 Qs · ~10 min

#99

Class 12 Business Studies — Controlling (Practice Quiz)

10 Qs · ~10 min

#100

Class 12 Business Studies — Directing (Practice Quiz)

10 Qs · ~10 min

#101

Class 12 Business Studies — Staffing (Practice Quiz)

10 Qs · ~10 min

#102

Class 12 Business Studies — Organising (Practice Quiz)

10 Qs · ~10 min

#103

Class 12 Business Studies — Planning (Practice Quiz)

10 Qs · ~10 min

#104

Class 12 Business Studies — Business Environment (Practice Quiz)

10 Qs · ~10 min

#105

Class 12 Business Studies — Nature and Significance of Management (Practice Quiz)

10 Qs · ~10 min

#106

Class 12 Accountancy — Cash Flow Statement (Practice Quiz)

10 Qs · ~10 min

#107

Class 12 Accountancy — Accounting Ratios (Practice Quiz)

10 Qs · ~10 min

#108

Class 12 Accountancy — Analysis of Financial Statements (Practice Quiz)

10 Qs · ~10 min

#109

Class 12 Accountancy — Financial Statements of a Company (Practice Quiz)

10 Qs · ~10 min

#110

Class 12 Accountancy — Issue and Redemption of Debentures (Practice Quiz)

10 Qs · ~10 min

#111

Class 12 Accountancy — Accounting for Share Capital (Practice Quiz)

10 Qs · ~10 min

#112

Class 12 Accountancy — Dissolution of Partnership Firm (Practice Quiz)

10 Qs · ~10 min

#113

Class 12 Accountancy — Reconstitution of a Partnership Firm – Retirement/Death of a Partner (Practice Quiz)

10 Qs · ~10 min

#114

Class 12 Accountancy — Reconstitution of a Partnership Firm – Admission of a Partner (Practice Quiz)

10 Qs · ~10 min

#115

Class 12 Accountancy — Accounting for Partnership: Basic Concepts (Practice Quiz)

10 Qs · ~10 min

#116

Class 12 Maths — Probability (Practice Quiz)

10 Qs · ~10 min

#117

Class 12 Maths — Linear Programming (Practice Quiz)

10 Qs · ~10 min

#118

Class 12 Maths — Three Dimensional Geometry (Practice Quiz)

10 Qs · ~10 min

#119

Class 12 Maths — Vector Algebra (Practice Quiz)

10 Qs · ~10 min

#120

Class 12 Maths — Differential Equations (Practice Quiz)

10 Qs · ~10 min

#121

Class 12 Maths — Application of Integrals (Practice Quiz)

10 Qs · ~10 min

#122

Class 12 Maths — Integrals (Practice Quiz)

10 Qs · ~10 min

#123

Class 12 Maths — Application of Derivatives (Practice Quiz)

10 Qs · ~10 min

#124

Class 12 Maths — Continuity and Differentiability (Practice Quiz)

10 Qs · ~10 min

#125

Class 12 Maths — Determinants (Practice Quiz)

10 Qs · ~10 min

#126

Class 12 Maths — Matrices (Practice Quiz)

10 Qs · ~10 min

#127

Class 12 Maths — Inverse Trigonometric Functions (Practice Quiz)

10 Qs · ~10 min

#128

Class 12 Maths — Relations and Functions (Practice Quiz)

10 Qs · ~10 min

#129

Class 12 Biology — Biodiversity and its Conservation (Practice Quiz)

10 Qs · ~10 min

#130

Class 12 Biology — Ecosystem (Practice Quiz)

10 Qs · ~10 min

#131

Class 12 Biology — Organisms and Populations (Practice Quiz)

10 Qs · ~10 min

#132

Class 12 Biology — Biotechnology and its Applications (Practice Quiz)

10 Qs · ~10 min

#133

Class 12 Biology — Biotechnology: Principles and Processes (Practice Quiz)

10 Qs · ~10 min

#134

Class 12 Biology — Microbes in Human Welfare (Practice Quiz)

10 Qs · ~10 min

#135

Class 12 Biology — Human Health and Disease (Practice Quiz)

10 Qs · ~10 min

#136

Class 12 Biology — Evolution (Practice Quiz)

10 Qs · ~10 min

#137

Class 12 Biology — Molecular Basis of Inheritance (Practice Quiz)

10 Qs · ~10 min

#138

Class 12 Biology — Principles of Inheritance and Variation (Practice Quiz)

10 Qs · ~10 min

#139

Class 12 Biology — Reproductive Health (Practice Quiz)

10 Qs · ~10 min

#140

Class 12 Biology — Human Reproduction (Practice Quiz)

10 Qs · ~10 min

#141

Class 12 Biology — Sexual Reproduction in Flowering Plants (Practice Quiz)

10 Qs · ~10 min

#142

Class 12 Chemistry — Biomolecules (Practice Quiz)

10 Qs · ~10 min

#143

Class 12 Chemistry — Amines (Practice Quiz)

10 Qs · ~10 min

#144

Class 12 Chemistry — Aldehydes, Ketones and Carboxylic Acids (Practice Quiz)

10 Qs · ~10 min

#145

Class 12 Chemistry — Alcohols, Phenols and Ethers (Practice Quiz)

10 Qs · ~10 min

#146

Class 12 Chemistry — Haloalkanes and Haloarenes (Practice Quiz)

10 Qs · ~10 min

#147

Class 12 Chemistry — Coordination Compounds (Practice Quiz)

10 Qs · ~10 min

#148

Class 12 Chemistry — The d- and f-Block Elements (Practice Quiz)

10 Qs · ~10 min

#149

Class 12 Chemistry — Chemical Kinetics (Practice Quiz)

10 Qs · ~10 min

#150

Class 12 Chemistry — Electrochemistry (Practice Quiz)

10 Qs · ~10 min

#151

Class 12 Chemistry — Solutions (Practice Quiz)

10 Qs · ~10 min

#152

Class 12 Physics — Semiconductor Electronics: Materials, Devices and Simple Circuits (Practice Quiz)

10 Qs · ~10 min

#153

Class 12 Physics — Nuclei (Practice Quiz)

10 Qs · ~10 min

#154

Class 12 Physics — Atoms (Practice Quiz)

10 Qs · ~10 min

#155

Class 12 Physics — Dual Nature of Radiation and Matter (Practice Quiz)

10 Qs · ~10 min

#156

Class 12 Physics — Wave Optics (Practice Quiz)

10 Qs · ~10 min

#157

Class 12 Physics — Ray Optics and Optical Instruments (Practice Quiz)

10 Qs · ~10 min

#158

Class 12 Physics — Electromagnetic Waves (Practice Quiz)

10 Qs · ~10 min

#159

Class 12 Physics — Alternating Current (Practice Quiz)

10 Qs · ~10 min

#160

Class 12 Physics — Electromagnetic Induction (Practice Quiz)

10 Qs · ~10 min

#161

Class 12 Physics — Magnetism and Matter (Practice Quiz)

10 Qs · ~10 min

#162

Class 12 Physics — Moving Charges and Magnetism (Practice Quiz)

10 Qs · ~10 min

#163

Class 12 Physics — Electrostatic Potential and Capacitance (Practice Quiz)

10 Qs · ~10 min

#164

Class 12 Physics — Electric Charges and Fields (Practice Quiz)

10 Qs · ~10 min

#165

Class 12 Business Studies — Principles of Management (Practice Quiz)

10 Qs · ~10 min

#166

CBSE Class 12 — Genetics and Evolution (Practice Quiz)

10 Qs · ~10 min

#167

CBSE Class 12 — Matrices and Determinants (Practice Quiz)

10 Qs · ~10 min

#168

CBSE Class 12 — Solutions and Colligative Properties (Practice Quiz)

10 Qs · ~10 min

#169

Class 12 Physics — Current Electricity (Practice Quiz)

10 Qs · ~10 min

#170

CBSE Class 12 — Electrostatics and Electric Field (Practice Quiz)

10 Qs · ~10 min

#171

Humanities Subjects Practice Quiz | CBSE Class 12 Board Examination

10 Qs · ~10 min

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