Match List – I with List – II. LIST I LIST II A. Issued shares after… | Accountancy Part A CUET question

Match List – I with List – II.

LIST I	LIST II
A. Issued shares after forfeiture	I. Liability
B. Amount more than par value of shares received on issue of shares	II. Bank loan
C. Premium on redemption of Debentures	III. Securities Premium Reserve
D. Long term Borrowings	IV. Reissue of shares

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A-IV, B-III, C-I, D-II

Each item is placed by what it is in the books.

A. Issued shares after forfeiture — this matches IV. Reissue of shares. Forfeited shares issued again are reissued shares.

B. Amount more than par value of shares received on issue of shares — this matches III. Securities Premium Reserve. The excess over face value is premium, credited to this account.

C. Premium on redemption of Debentures — this matches I. Liability. It is payable in future, so it is a liability of the company.

D. Long term Borrowings — this matches II. Bank loan. A bank loan repayable after twelve months is a long-term borrowing.

NCERT (2026-27 edition):
Reissue of Forfeited Shares – “The directors can either cancel or re-issue the forefeited shares. In most cases, they reissue such shares which may be at par, at premium or at a discount.”

NCERT (2026-27 edition):
Issue of Shares – “… Shares of a company are issued either at par or at a premium. Shares are to be issued at par when their issue price is exactly equal to their nominal value according to the terms and conditions of issue. When the shares of a company are issued more than its nominal value (face value), the excess amount is called premium.”

NCERT (2026-27 edition):
Terms of Issue of Debentures – “… 2. Premium on redemption is a liability of a company payable in future. It is a provision and is shown under the head Non-current liabilities under sub-head ‘Long-term Borrowings’ until debentures are redeemed.”

NCERT (2026-27 edition):
Borrowings – “Total borrowings are categorised into long-term borrowings, short-term borrowings and current maturities to long-term debt. Loans which are repayable in more than twelve months/operating cycle are classified as long-term borrowings on the face of balance sheet.”