Match List – I with List – II. List – I List – II (A) It contains com… | Accountancy Part A CUET question

Match List – I with List – II.

List – I	List – II
(A) It contains complete information about the company and the manner in which money is to be collected	(I) Memorandum of association
(B) The amount of authorised capital together with the number of shares in which it is divided is stated in	(II) Capital reserve
(C) Balance of share forfeited comes under heading after re-issue of forfeited shares	(III) Share Capital
(D) The balance of share forfeited account after reissue of all forfeited shares transferred to	(IV) Prospectus

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(IV), (B)-(I), (C)-(III), (D)-(II)

(A) It contains complete information about the company and the manner in which money is to be collected — this matches (IV) Prospectus. The prospectus is the company’s invitation to the public to subscribe.

(B) The amount of authorised capital together with the number of shares in which it is divided is stated in — this matches (I) Memorandum of association. The capital clause of the memorandum fixes the authorised capital.

(C) Balance of share forfeited comes under heading after re-issue of forfeited shares — this matches (III) Share Capital. Until the forfeited shares are reissued, the balance of Share Forfeiture Account is added to paid-up capital under Share Capital.

(D) The balance of share forfeited account after reissue of all forfeited shares transferred to — this matches (II) Capital reserve. Once the shares are reissued, the balance left is a capital profit.

NCERT (2026-27 edition):
Issue of Prospectus – “… The company first issues the prospectus to the public. Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business. It contains complete information about the company and the manner in which the money is to be collected from the prospective investors.”

NCERT (2026-27 edition):
Nature and Classes of Shares – “… The amount of authorised capital, together with the number of shares in which it is divided, is stated in the Memorandum of Association but the classes of shares in which the company’s capital is to be divided, along with their respective rights and obligations, are prescribed by the Articles of Association of the company.”

NCERT (2026-27 edition):
Forfeiture of Shares – “… The balance of shares forfeited account is shown as an addition to the total paid-up capital of the company under the head ‘Share Capital’ under title ‘Equity and Liabilities’ of the Balance Sheet till the forfeited shares are reissued.”

NCERT (2026-27 edition):
Reissue of Forfeited Shares – “… The balance, if any, left in the Share-Forfeited Account relating to reissued Shares, should be treated as capital profit and transferred to Capital Reserve Account.”

Match List – I with List – II.

List – I	List – II
(A) It contains complete information about the company and the manner in which money is to be collected	(I) Memorandum of association
(B) The amount of authorised capital together with the number of shares in which it is divided is stated in	(II) Capital reserve
(C) Balance of share forfeited comes under heading after re-issue of forfeited shares	(III) Share Capital
(D) The balance of share forfeited account after reissue of all forfeited shares transferred to	(IV) Prospectus

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(IV), (B)-(I), (C)-(III), (D)-(II)