The Accounting for Share Capital class 12 accountancy handwritten notes from Collegedunia condense the entire 8-page Company Accounts opener into a scanned blue-ink notebook covering share issue journals, calls in arrears and advance, forfeiture and reissue, pro-rata allotment, and ESOP / sweat equity entries for the 2026-27 CBSE Accountancy Part B paper.
- CBSE Weightage: 10 to 12 marks across Accountancy Part B (Company Accounts), the highest single-chapter weight in the syllabus and the standard source of one 8-mark long-form numerical.
- Commerce stream relevance: Forfeiture and reissue journals appear in nearly every CUET Accountancy slot and remain a high-frequency topic for B.Com entrance papers.
Each ruled page maps to one numerical block you will actually face in the exam: share-issue T-format on page 1, calls in arrears and advance on page 2, the forfeiture and reissue ladder on pages 3 and 4, pro-rata allotment grid on page 5, and ESOP, private placement, and slip warnings on pages 6 to 8.
Also Check:
- Accounting for Share Capital Class 12 Notes (Typeset)
- Accounting for Share Capital Class 12 NCERT Solutions
Accounting for Share Capital Class 12 Accountancy Handwritten Notes: What the 8 Pages Cover
The eight pages are structured as one numerical pattern each. Use the strip below as a contents map before opening the PDF.
| Page | Focus | Key rule |
|---|---|---|
| 1 | Share Capital terms + 5-stage issue journal | Authorised, Issued, Subscribed, Called-up, Paid-up. |
| 2 | Calls in Arrears vs Calls in Advance | 10% on arrears, 12% on advance (Table F caps). |
| 3 | Forfeiture journal ladder | Share Capital Dr at called-up value; Forfeited Shares Cr. |
| 4 | Reissue of forfeited shares | Reissue discount capped at forfeited balance; residue to Capital Reserve. |
| 5 | Pro-rata allotment grid | Excess application money adjusted on allotment before any refund. |
| 6 | Premium, ESOP, sweat equity | ESOP discount routed via Employee Compensation Expense A/c. |
| 7 | Private placement / right issue | Section 42 (private placement), Section 62 (right issue). |
| 8 | Six slip warnings | Red-pen margin arrows mark the trap and the safer entry. |
Class 12 Accountancy Part 2 Chapter 1 Accounting For Share Capital Handwritten Notes
Source: Next Toppers - 12th Commerce on YouTube
Share Issue Journal Block: The Page-1 Five-Stage Skeleton
Page 1 draws the five-stage share issue journal as a continuous ledger block in blue ink. The five stages are application, allotment, first call, second call, and final call. Generic entries are printed beneath the header so you can adapt them to any face value, premium, or call schedule.
The notebook tags the allotment entry with a red asterisk because allotment is where excess application money is adjusted on pro-rata and where the securities premium leg lives.
Calls in Arrears and Calls in Advance: The Page-2 Interest-Rate Trap
Page 2 contains the two mirror accounts Collegedunia students flag as the most-confused pair in the chapter. Calls in Arrears is a debit balance shown as a deduction from Called-up Capital; Calls in Advance is a credit balance shown under Other Current Liabilities. The Table F interest rates differ and the question paper rotates the direction year on year.
| Item | Account nature | Max interest rate (Table F) | Balance sheet location |
|---|---|---|---|
| Calls in Arrears | Asset side adjustment (debit) | 10% p.a. charged BY the firm | Deducted from Called-up Capital |
| Calls in Advance | Liability (credit) | 12% p.a. paid BY the firm | Other Current Liabilities |
| Securities Premium balance | Reserve and Surplus | - | Shareholders' Funds |
The arrow points from the 10% and 12% caps to a margin note: "Table F defaults under the Companies Act 2013, override only if the question states otherwise."
How Collegedunia's Handwritten Notes Help You in the Last 24 Hours
The eight pages are written for the final-day reader who has read the typeset Notes PDF once. Print the booklet, fold it lengthwise, and you have a pocket-size revision strip. Three reasons it works for the share capital chapter:
- Every page is one full numerical pattern, so your eyes do not jump between concepts mid-revision.
- The red margin arrows highlight only the six slip patterns that account for over 65% of lost marks in the chapter.
- The forfeiture-and-reissue ladder on pages 3 and 4 is drawn in the exact sequence the marker expects, saving about three minutes per 8-mark question.
Forfeiture and Reissue of Shares: The Page-3 to Page-4 Journal Ladder
Pages 3 and 4 form the load-bearing visual of the booklet because forfeiture and reissue is the standard 8-mark long-form numerical in Part B. The forfeiture journal sits on page 3 as a three-line ladder; the Forfeited Shares balance carries into page 4 where the reissue is settled and the residue moved to Capital Reserve.
- Forfeiture entry: Share Capital A/c Dr (with called-up value), Securities Premium A/c Dr (only if the premium was unpaid AND already credited), to Forfeited Shares A/c (amount received so far), to Calls in Arrears (unpaid).
- Reissue entry: Bank A/c Dr (reissue price), Forfeited Shares A/c Dr (any discount on reissue, capped at the forfeited balance), to Share Capital A/c (face value or paid-up value as reissued).
- Capital Reserve transfer: Balance left in Forfeited Shares A/c after reissue is transferred to Capital Reserve A/c.
Pro-Rata Allotment Grid: The Page-5 Application-Money Adjustment
Page 5 splits the total application money into three buckets: money against shares allotted, money adjusted on allotment, and money refunded. The grid exists because pro-rata is where most candidates lose two to three marks by refunding amounts that should have been adjusted, or vice versa.
| Bucket | What it is | Where it goes in the journal |
|---|---|---|
| Money against shares allotted | Applied shares times allotted-portion times application money per share | Bank A/c to Share Application A/c, then to Share Capital A/c on allotment |
| Excess on pro-rata applicants | Difference between applied amount and amount due on allotted shares | Adjusted on allotment by debiting Share Application A/c and crediting Share Allotment A/c |
| Money on fully rejected applications | Application money on applications below the pro-rata cut-off | Refunded under Section 39, no journal goes to Share Capital A/c |
The margin prints a one-line drill: "refund first, then adjust, then call." Following this order keeps the calls-in-arrears figure correct even when the paper mixes a partial refund with a pro-rata adjustment.
Six Frequent Share Capital Slip Warnings: Page 8 Red-Pen Margin Arrows
Page 8 lists six traps that examiners deliberately seed into share capital numericals. Each trap is annotated with a margin arrow pointing to the textbook rule and the safer alternative journal entry. Treat this page as a checklist before you write your final balance.
| # | Slip pattern | Red-pen correction |
|---|---|---|
| 1 | Reversing already-received Securities Premium on forfeiture | Received premium stays in Securities Premium A/c; reverse only if unpaid AND originally credited. |
| 2 | Forfeiting at issue price instead of called-up value | Share Capital A/c is debited at the called-up amount, not face value or issue price. |
| 3 | Charging 10% on Calls in Advance | Calls in Advance attracts 12% p.a.; Calls in Arrears attracts 10%. |
| 4 | Refunding pro-rata excess instead of adjusting on allotment | Pro-rata excess is adjusted. Refund applies only to fully rejected applications. |
| 5 | Transferring full Forfeited Shares balance on partial reissue | Only the proportional balance moves to Capital Reserve. |
| 6 | Treating ESOP discount as a revenue expense | Amortise through Employee Compensation Expense A/c over the vesting period. |
Tick each of these six boxes before submitting and the chapter loses you at most one or two presentation marks rather than the four to six marks the average candidate forfeits.
Memory Mnemonics for Share Capital Quick Recall
The mnemonic strip on the inside fold of the booklet is built for instant recall of the most-confused number pairs.
- AISCP: Authorised, Issued, Subscribed, Called-up, Paid-up. The five share capital categories in descending order of magnitude.
- 10-A-12-V: 10% on Arrears, 12% on adVance. The two Table F default interest rates.
- RAR: Refund first, Adjust pro-rata, then make the next call. The order of money handling on allotment.
- F minus R equals C: Forfeited balance minus Reissue discount equals Capital Reserve transfer.
Full formula sheet: Accounting for Share Capital Formula Sheet.
Related Resources for Class 12 Accountancy Part 2 Chapter 1
- Class 12 Accountancy Part 2 Chapter 1 Notes (Typeset)
- Class 12 Accountancy Part 2 Chapter 1 NCERT Solutions
- Class 12 Accountancy Part 2 Chapter 1 Formula Sheet
- Class 12 Accountancy Part 2 Chapter 1 NCERT Book PDF
NCERT Handwritten Notes for Class 12 Accountancy: All Chapters
Accounting for Share Capital Class 12 Handwritten Notes FAQs
Ques. What does the Accounting for Share Capital class 12 accountancy handwritten notes PDF contain?
Ans.
Eight ruled pages: share-issue journal block, calls in arrears and advance, forfeiture journal ladder, reissue and Capital Reserve transfer, pro-rata allotment grid, premium / ESOP / sweat equity, private placement and right issue, and six red-pen slip warnings. The booklet is sized for last-day revision and assumes you have read the typeset Notes PDF once.
Ques. What is the difference between Calls in Arrears and Calls in Advance?
Ans.
Calls in Arrears is an unpaid amount the shareholder owes the firm; the company can charge interest at up to 10% per annum under Table F and shows it as a deduction from Called-up Capital. Calls in Advance is money paid by the shareholder before the call is due; the firm pays interest at up to 12% per annum and shows it under Other Current Liabilities.
Ques. How is the Capital Reserve amount on reissue of forfeited shares calculated?
Ans.
Capital Reserve equals the balance in the Forfeited Shares A/c attributable to the reissued lot minus any reissue discount given. If only part of the forfeited lot is reissued, only the proportional balance is transferred; the rest remains in Forfeited Shares A/c against the unreissued portion. The page-4 ladder in the booklet draws this exact transfer.
Ques. At what value is Share Capital A/c debited when shares are forfeited?
Ans.
At the called-up value, not the face value and not the issue price. If only the first call has been made when the shares are forfeited, Share Capital A/c is debited at application plus allotment plus first-call amount per share, even when the face value is higher.
Ques. Are handwritten notes enough to cover the share capital chapter for CBSE 2026?
Ans.
The handwritten notes are a final-day revision aid, not a first-read resource. Pair them with the Collegedunia typeset Notes PDF and at least 10 solved numericals on forfeiture and pro-rata allotment from the NCERT textbook for a complete 10 to 12 mark coverage of the chapter in the Accountancy Part B paper.
Comments