T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 11 to 20

Solution for Q 11 to 20 of Chapter 1 of Book 2 - Accounting for Companies of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Accounting for share capital class 12 or Issue of Shares. These Solutions are based on topics Preparation of Balance Sheet for companies, journal entries at the time of issue of shares for cash at par, issue of shares for cash at premium and preparation of cash book

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 11.

In the books of Nidhi Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	2500000		250000	10
To Equity Share Application and Allotment A/c		2500000
( Being share application money received for 250000 shares @
Rs 10 per share)

Equity Share Application and Allotment A/c	2500000
To Equity Share Capital A/c		2500000
( Being share application money received for 250000 shares @
Rs 10 per share transferred to Share Capital A/c)

▶ Video Solution: Coming Soon

Question 12.

In the books of Soumya Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	800000		80000	10
To Equity Share Application and Allotment A/c		800000
( Being share application money received for 80000 shares @
Rs 10 per share)

Equity Share Application and Allotment A/c	800000		80000	10
To Equity Share Capital A/c		800000
( Being share application money received for 80000 shares @
Rs 10 per share transferred to Share Capital A/c)

▶ Video Solution: Coming Soon

Question 13.

In the books of Vivan Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	300000		10000	30
To Equity Share Application A/c		300000
( Being share application money received for 10000 shares @
Rs 30 per share)

Equity Share Application A/c	300000		10000	30
To Equity Share Capital A/c		300000
( Being share application money transferred to Share Capital
A/c for 10000 shares @ Rs 30 per share)

Equity Share Allotment A/c	300000		10000	30
To Equity Share Capital A/c		300000
( Being share allotment money for 10000 shares @ Rs 30 per
share transferred to Share Capital A/c)

Bank A/c	300000		10000	30
To Equity Share Allotment A/c		300000
( Being share allotment money received for 10000 shares @ Rs
30 per share)

Equity Share 1st and Final Call A/c	400000		10000	40
To Equity Share Capital A/c		400000
( Being share 1st Call money for 10000 shares @ Rs 40 per
share transferred to Share Capital A/c)

Bank A/c	400000		10000	40
To Equity Share 1st and Final Call A/c		400000
( Being share 1st Call money received for 10000 shares @ Rs
40 per share)

Balance Sheet of Vivan Ltd as at …..
Particulars	Note No.	Amount
Equity and Liabilities
Shareholders Funds
(a) Share Capital	1	1000000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Capital
	Equity Shares of Rs each	0
	Preference Shares of Rs each	0
		0
	Issued Capital
	10,000 Equity Shares of Rs 100 each	1000000	10000	100
	Preference Shares of Rs each	0
		1000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	10,000 Equity Shares of Rs 100 each	1000000	10000	100
	Preference Shares of Rs each	0
		1000000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each
	Less - Calls in Arrears
	Preference Shares of Rs each
	Less - Calls in Arrears
	Add - Forefeited Shares

	Share Capital in the Balance Sheet	1000000

▶ Video Solution: Coming Soon

Question 14.

In the books of National Textiles Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	90000		3000	30
To Equity Share Application A/c		90000
( Being share application money received for 3000 shares @
Rs 30 per share)

Equity Share Application A/c	90000		3000	30
To Equity Share Capital A/c		90000
( Being share application money transferred to Share Capital
A/c for 3000 shares @ Rs 30 per share)

Equity Share Allotment A/c	120000		3000	40
To Equity Share Capital A/c		120000
( Being share allotment money for 3000 shares @ Rs 40 per
share transferred to Share Capital A/c)

Bank A/c	120000		3000	40
To Equity Share Allotment A/c		120000
( Being share allotment money received for 3000 shares @ Rs
40 per share)

Equity Share 1st and Final Call A/c	90000		3000	30
To Equity Share Capital A/c		90000
( Being share 1st Call money for 3000 shares @ Rs 30 per
share transferred to Share Capital A/c)

Bank A/c	90000		3000	30
To Equity Share 1st and Final Call A/c		90000
( Being share 1st Call money received for 3000 shares @ Rs
30 per share)

Balance Sheet of National Textiles Ltd as at …..
Particulars	Note No.	Amount
Equity and Liabilities
Shareholders Funds
(a) Share Capital	1	300000
(b) Reserves and Surplus	2	0
Total		300000
Assets
Current Assets
Cash and Cash Equivalents	3	300000
Total		300000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Capital
	3,000 Equity Shares of Rs 100 each	300000	3000	100
	Preference Shares of Rs each	0
		300000
	Issued Capital
	3,000 Equity Shares of Rs 100 each	300000	3000	100
	Preference Shares of Rs each	0
		300000
	Subscribed Capital
	Subscribed and Fully Paid Up
	3,000 Equity Shares of Rs 100 each	300000	3000	100
	Preference Shares of Rs each	0
		300000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each
	Less - Calls in Arrears
	Preference Shares of Rs each
	Less - Calls in Arrears
	Add - Forefeited Shares

	Share Capital in the Balance Sheet	300000
2	Reserves and Surplus
	Securities Premium Reserve	0
3	Cash and Cash Equivalents
	Cash at Bank	300000

	Bank A/c
Particulars	Amount	Particulars	Amount
To Equity Share Application A/c	90000	By Balance C/d	300000
To Equity Share Allotment A/c	120000
To Equity Share 1st and Final Call A/c	90000

Total	300000	Total	300000

▶ Video Solution: Coming Soon

Question 15.

In the books of Modern Dairies Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	10000		1000	10
To Equity Share Application A/c		10000
( Being share application money received for 1000 shares @
Rs 10 per share)

Equity Share Application A/c	10000		1000	10
To Equity Share Capital A/c		10000
( Being share application money transferred to Share Capital
A/c for 1000 shares @ Rs 10 per share)

Equity Share Allotment A/c	40000		1000	40
To Equity Share Capital A/c		40000
( Being share allotment money for 1000 shares @ Rs 40 per
share transferred to Share Capital A/c)

Bank A/c	40000		1000	40
To Equity Share Allotment A/c		40000
( Being share allotment money received for 1000 shares @ Rs
40 per share)

Equity Share 1st Call A/c	25000		1000	25
To Equity Share Capital A/c		25000
( Being share 1st Call money for 1000 shares @ Rs 25 per
share transferred to Share Capital A/c)

Bank A/c	25000		1000	25
To Equity Share 1st Call A/c		25000
( Being share 1st Call money received for 1000 shares @ Rs
25 per share)

Equity Share 2nd and Final Call A/c	25000		1000	25
To Equity Share Capital A/c		25000
( Being share 2nd and Final Call money for 1000 shares @ Rs
25 per share transferred to Share Capital A/c)

Bank A/c	25000		1000	25
To Equity Share 2nd and Final Call A/c		25000
( Being share 2nd and Final Call money received for 1000
shares @ Rs 25 per share)

Bank A/c Dr.	12500		500	25
To 9% Preference Share Application A/c		12500
( Being share application money received for 500 shares @ Rs
25 per share)

9% Preference Share Application A/c	12500		500	25
To 9% Preference Share Capital A/c		12500
( Being share application money transferred to Share Capital
A/c for 500 shares @ Rs 25 per share)

9% Preference Share Allotment A/c	12500		500	25
To 9% Preference Share Capital A/c		12500
( Being share allotment money for 500 shares @ Rs 25 per
share transferred to Share Capital A/c)

Bank A/c	12500		500	25
To 9% Preference Share Allotment A/c		12500
( Being share allotment money received for 500 shares @ Rs
25 per share)

9% Preference Share 1st and Final Call A/c	25000		500	50
To 9% Preference Share Capital A/c		25000
( Being share 1st Call money for 500 shares @ Rs 50 per
share transferred to Share Capital A/c)

Bank A/c	25000		500	50
To 9% Preference Share 1st and Final Call A/c		25000
( Being share 1st Call money received for 500 shares @ Rs 50
per share)

	Bank A/c
Particulars	Amount	Particulars	Amount
To Equity Share Application A/c	10000	By Balance C/d	150000
To Equity Share Allotment A/c	40000
To Equity Share 1st Call A/c	25000
To Equity Share 2nd and Final Call A/c	25000
To 9% Preference Share Application A/c	12500
To 9% Preference Share Allotment A/c	12500
To 9% Preference Share 1st and Final Call A/c	25000

Total	150000	Total	150000

Balance Sheet of Modern Dairies Ltd as at …..
Particulars	Note No.	Amount
Equity and Liabilities
Shareholders Funds
(a) Share Capital	1	150000
(b) Reserves and Surplus	2	0
Total		150000
Assets
Current Assets
Cash and Cash Equivalents	3	150000
Total		150000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Capital
	7,500 Equity Shares of Rs 100 each	750000	7500	100
	2,500 9% Preference Shares of Rs 100 each	250000	2500	100
		1000000
	Issued Capital
	1,000 Equity Shares of Rs 100 each	100000	1000	100
	500 9% Preference Shares of Rs 100 each	50000	500	100
		150000
	Subscribed Capital
	Subscribed and Fully Paid Up
	1,000 Equity Shares of Rs 100 each	100000	1000	100
	500 9% Preference Shares of Rs 100 each	50000	500	100
		150000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each
	Less - Calls in Arrears
	Preference Shares of Rs each
	Less - Calls in Arrears
	Add - Forefeited Shares

	Share Capital in the Balance Sheet	150000
2	Reserves and Surplus
	Securities Premium Reserve	0
3	Cash and Cash Equivalents
	Cash at Bank	150000

▶ Video Solution: Coming Soon

Question 16.

In the books of Premio Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	5000000		50000	100
To Equity Share Application A/c		5000000
( Being share application money received for 50000 shares @
Rs 100 per share)

Equity Share Application A/c	5000000		50000	100
To Equity Share Capital A/c		5000000
( Being share application money transferred to Share Capital
A/c for 50000 shares @ Rs 100 per share)

Equity Share Allotment A/c	2500000		50000	50
To Securities Premium Reserve A/c		2500000
( Being share allotment money for 50000 shares @ Rs 50 per
share transferred to Securities Premium Reserve A/c)

Bank A/c	2500000		50000	50
To Equity Share Allotment A/c		2500000
( Being share allotment money received for 50000 shares @ Rs
50 per share)

▶ Video Solution: Coming Soon

Question 17.

In the books of Bharat Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr.	54000		18000	3
To Equity Share Application A/c		54000
( Being share application money received for 18000 shares @
Rs 3 per share)

Equity Share Application A/c	54000		18000
To Equity Share Capital A/c		36000		2
To Securities Premium Reserve A/c		18000		1
( Being share application money for 18000 shares transferred
to Share Capital A/c @ Rs 2 per share and Securities Premium
Reserve A/c @ Rs 1 per share)

Equity Share Allotment A/c	72000		18000
To Equity Share Capital A/c		54000		3
To Securities Premium Reserve A/c		18000		1
( Being share allotment money for 18000 shares transferred
to Share Capital A/c @ Rs 3 per share and Securities Premium
Reserve A/c @ Rs 1 per share)

Bank A/c	72000		18000	4
To Equity Share Allotment A/c		72000
( Being share allotment money received for 18000 shares @ Rs
4 per share)

Equity Share 1st Call A/c	36000		18000	2
To Equity Share Capital A/c		36000
( Being share 1st Call money for 18000 shares @ Rs 2 per
share transferred to Share Capital A/c)

Bank A/c	36000		18000	2
To Equity Share 1st Call A/c		36000
( Being share 1st Call money received for 18000 shares @ Rs
2 per share)

Equity Share 2nd and Final Call A/c	54000		18000	3
To Equity Share Capital A/c		54000
( Being share 2nd and Final Call money for 18000 shares @ Rs
3 per share transferred to Share Capital A/c)

Bank A/c	54000		18000	3
To Equity Share 2nd and Final Call A/c		54000
( Being share 2nd and Final Call money received for 18000
shares @ Rs 3 per share)

Balance Sheet of Bharat Ltd as at …..
Particulars	Note No.	Amount
Equity and Liabilities
Shareholders Funds
(a) Share Capital	1	180000
(b) Reserves and Surplus	2	36000
Total		216000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Capital
	20,000 Equity Shares of Rs 10 each	200000	20000	10
	9% Preference Shares of Rs each	0
		200000
	Issued Capital
	20,000 Equity Shares of Rs 10 each	200000	20000	10
	9% Preference Shares of Rs each	0
		200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	18,000 Equity Shares of Rs 10 each	180000	18000	10
	9% Preference Shares of Rs each	0
		180000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each
	Less - Calls in Arrears
	Preference Shares of Rs each
	Less - Calls in Arrears
	Add - Forefeited Shares

	Share Capital in the Balance Sheet	180000
2	Reserves and Surplus
	Securities Premium Reserve	36000

▶ Video Solution: Coming Soon

Question 18.

Balance Sheet of Suhani Ltd as at …..
Particulars	Note No.	Amount
Equity and Liabilities
Shareholders Funds
(a) Share Capital	1	2100000
(b) Reserves and Surplus	2	140000
Total		2240000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Capital
	30,000 Equity Shares of Rs 150 each	4500000	30000	150
	9% Preference Shares of Rs each	0
		4500000
	Issued Capital
	15,000 Equity Shares of Rs 150 each	2250000	15000	150
	9% Preference Shares of Rs each	0
		2250000
	Subscribed Capital
	Subscribed and Fully Paid Up
	14,000 Equity Shares of Rs 150 each	2100000	14000	150
	9% Preference Shares of Rs each	0
		2100000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each
	Less - Calls in Arrears
	Preference Shares of Rs each
	Less - Calls in Arrears
	Add - Forefeited Shares

	Amount to be shown in the Balance Sheet against Share Capital	2100000
2	Reserves and Surplus
	Securities Premium Reserve	140000

▶ Video Solution: Coming Soon

Question 19.

In the books of Bright Ltd
Particulars		Dr	Cr	Shares	Per Share
Bank A/c Dr.		480000		120000	4
To Equity Share Application A/c			480000
( Being share application money received for 120000 shares @
Rs 4 per share)

Equity Share Application A/c	Case 1	480000		120000	4
To Equity Share Capital A/c			320000	80000	4
To Bank A/c			160000	40000	4
(Being share application money on 80000 shares transferred
to share capital A/c and money on 40000 shares returned
back)

Equity Share Application A/c	Case 2	480000		120000	4
To Equity Share Capital A/c			320000	80000	4
To Equity Share Allotment A/c			160000	40000	4
(Being share application money on 80000 shares transferred
to share capital A/c and money on 40000 shares transferred
to share allotment A/c)

Equity Share Application A/c	Case 3	480000		120000	4
To Equity Share Capital A/c			320000	80000	4
To Bank A/c			80000	20000	4
To Equity Share Allotment A/c			80000	20000	4
(Being share application money on 80000 shares transferred
to share capital A/c, money on 20000 shares returned back
and money on 20000 shares transferred to share allotment
A/c)

Equity Share Application A/c	Case 4	480000		120000	4
To Equity Share Capital A/c			320000	80000	4
To Bank A/c			40000	10000	4
To Equity Share Allotment A/c			120000	30000	4
(Being share application money on 80000 shares transferred
to share capital A/c, money on 10000 shares returned back
and money on 30000 shares transferred to share allotment
A/c)

▶ Video Solution: Coming Soon

Question 20.

Application money received Rs 27 Lakhs @ Rs 30 per share.

It means no. of shares applied = 2700000 / 30 = 90000 shares

This is the case of oversubscription

Three alternatives for allotment are as follows :

1. Some applications are accepted in full and remaining

applications are rejected in full and application money refunded thereon

2. All applicants are alloted on pro rata basis

3. Some applications are accepted in full,

some applications are rejected in full,

some applications are alloted on pro rata basis

▶ Video Solution: Coming Soon

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