Subscribed and not fully paid capital of Dharma Ltd. will be :
Subscribed and not fully paid capital of Dharma Ltd. will be :
Options
Official answer
Correct option: (D) Nil.
- 'Subscribed but not fully paid' would apply to shares that are still outstanding (not forfeited) but on which some call remains unpaid.
- Since the directors have already forfeited the shares of both Aditi and Rohit, none of the partly-paid shares remain outstanding as 'subscribed but not fully paid' — they have moved out of subscribed capital altogether into the Share Forfeiture Account.
- Therefore, subscribed and not fully paid capital = Nil.
Marking scheme
- 1.1 mark for selecting (D) Nil, recognising that forfeiture removes the shares from the 'not fully paid' category.
Hint
Once shares are forfeited, they leave the 'subscribed but not fully paid' category entirely — check whether forfeiture has already happened before answering.
Quick oral answer
Since Aditi's and Rohit's partly-paid shares were forfeited, none remain as 'subscribed but not fully paid' — the answer is Nil.
Common mistakes
- 1.Assuming 'not fully paid' automatically applies to Aditi's and Rohit's shares, without noticing they have already been forfeited and removed from this category.
- 2.Confusing this category with the Share Forfeiture Account balance (Rs. 29,000), which is a different, separate line item.
Analysis and explanation
This is the trickiest question in the series because students instinctively expect a non-zero figure for 'not fully paid' shares.
Why (D) is correct
- Once shares are forfeited, they are removed entirely from the 'subscribed capital' classification (both fully-paid and not-fully-paid sub-categories); the money already paid on them sits separately in the Share Forfeiture Account (Q30) until reissue.
- Since Aditi's and Rohit's shares (the only partly-paid ones) were already forfeited, no shares remain in the books as 'subscribed but not fully paid' — hence Nil.
Why the distractors are wrong
- (A) Rs. 9,00,000 and (C) Rs. 8,56,000 would only apply if the shares had NOT been forfeited and calls were merely in arrears.
- (B) Rs. 8,30,000 is actually the 'subscribed and fully paid' figure (Q28), the opposite category.
Interesting facts
This exact type of question — testing whether students realise forfeiture empties the 'not fully paid' category — is a favourite CBSE examiner trap in share capital case-based MCQs.
If the calls had merely been in arrears (no forfeiture), 'subscribed but not fully paid' would instead show the called-up value of those shares less calls-in-arrears, disclosed separately in the Notes to Accounts.
Question details
Q31 of 39 questions
- Board
- CBSE
- Class
- Class 12
- Subject
- Accountancy
- Year
- 2026
- Section
- Section A
- Marks
- 1
- Type
- MCQ
- Chapter
- Accounting for Share Capital
- Topic
- Subscribed but Not Fully Paid Capital after Forfeiture
- Bloom's level
- analyze
- Syllabus topic
- Unit 1: Accounting for Companies — Accounting for Share Capital: Subscribed Capital Categories after Forfeiture
- Author
- CBSE
- Reviewed by
- Padhantu Academic Team
Spotted a mistake or something unclear?
Tell us and we will fix it.
Frequently asked questions
If the shares had not been forfeited, what would the answer be?
If calls were merely in arrears (no forfeiture), 'subscribed but not fully paid' would show the called-up value of the 7,000 partly-paid shares, i.e. Rs. 70,000 (7,000 × Rs. 10), less calls-in-arrears actually outstanding — but here, forfeiture has already occurred, making the answer Nil.