T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 31 to 40

Solution for Q 31 to 40 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, undersubscription, oversubscription and pro rata allotment, calls in arrears and calls in advance, issue of shares for consideration other than cash.

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 31

In the books of Pure Products Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	189000		63000	3
To Equity Share Application A/c		189000
( Being share application money received for 63000
shares @ Rs 3 per share)

Equity Share Application A/c	189000
To Equity Share Capital A/c		189000	63000	3
		0
( Being share application money received for 63000
shares transferred to Share Capital A/c @ Rs 3 per
share)

Equity Share Allotment A/c	315000		63000
To Equity Share Capital A/c		189000		3
To Securities Premium Reserve A/c		126000		2
( Being share allotment money for 63000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 2 per
share)

Bank A/c	315000		63000	5
To Equity Share Allotment A/c		315000
( Being share allotment money received for 63000
shares @ Rs 5 per share )

Equity Share 1st and Final Call A/c	252000		63000
To Equity Share Capital A/c		252000		4
		0
( Being share 1st Call money for 63000 shares
transferred to Share Capital A/c @ Rs 4 per share)

Bank A/c	252000		63000	4
To Equity Share 1st and Final Call A/c		252000
( Being share 1st Call money received for 63000
shares @ Rs 4 per share )

Note :	No of shares applied = 189000/3 = 63000 shares
Note :	Pure Products Ltd issued 70000 equity shares
	Minimum subscription will be 90% of 70000 = 63000 shares
	Since the applications are for 63000 shares, so the minimum subscription is received
	The company can go ahead with the allotment

▶ Video Solution: Coming Soon

Question 32

In the books of Blue Chip Ltd

Date	Particulars	Dr	Cr	Shares	Per share
1st Jan	Bank A/c Dr..	40000		40000	1
	To Equity Share Application A/c		40000
	( Being share application money received for 40000
	shares @ Rs 1 per share)

1st Feb	Equity Share Application A/c	40000		40000
	To Equity Share Capital A/c		40000		1
			0
	( Being share application money received for 40000
	shares transferred to Share Capital A/c @ Rs 1 per
	share)

1st feb	Equity Share Allotment A/c	80000		40000
	To Equity Share Capital A/c		80000		2
			0
	( Being share allotment money for 40000 shares
	transferred to Share Capital A/c @ Rs 2 per share)

28th Feb	Bank A/c	80000		40000	2
	To Equity Share Allotment A/c		80000
	( Being share allotment money received for 40000
	shares @ Rs 2 per share )

1st Mar	Equity Share 1st Call A/c	120000		40000
	To Equity Share Capital A/c		120000		3
			0
	( Being share 1st Call money for 40000 shares
	transferred to Share Capital A/c @ Rs 3 per share)

	Bank A/c	119700		39900	3
	To Equity Share 1st Call A/c		119700	(40000-100)
	( Being share 1st Call money received for 39900
	shares @ Rs 3 per share )

1st Jun	Equity Share 2nd and Final Call A/c	160000		40000
	To Equity Share Capital A/c		160000		4
			0
	( Being share 2nd and Final Call money for 40000
	shares transferred to Share Capital A/c @ Rs 4 per
	share)

30th Jun	Bank A/c	158400		39600	4
	To Equity Share 2nd and Final Call A/c		158400	(40000-400)
	( Being share 2nd and Final Call money received for
	39600 shares @ Rs 4 per share )

Blue Chip Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	398100
	(b) Reserves and Surplus	2	0
	Total		398100

II	Assets
	Current Assets
	Cash and Cash Equivalents	3	398100
	Total		398100

	Notes to Accounts		Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	100000 Equity Shares of Rs 10 each		1000000	100000	10
			0
			1000000
	Issued Capital
	42000 Equity Shares of Rs 10 each		420000	42000	10
			0
			420000
	Subscribed Capital
	Subscribed and Fully Paid Up
	39600 Equity Shares of Rs 10 each		396000	39600	10
			0
			396000
	Subscribed but not Fully Paid Up
	400 Equity Shares of Rs 10 each Rs 10 called Up	4000		400	10
	Less - Calls in Arrears	1900	2100
			0

	Add - Forefeited Shares
	Amount in the Balance Sheet against Share Capital		398100

2	Reserves and Surplus
	Securities Premium Reserve		0
3	Cash and Cash Equivalents
	Cash at Bank		398100

Note : The shares defaulting on 1st call are included in

400 shaes defaulting on 2nd call. So new shares

defaulting on 2nd call are 300

** ON 100 shares 1st and 2nd Call not received	100	7	700
*** ON 300 shares 2nd Call not received	300	4	1200
Amount due on these 400 shares	400	10	4000
Amount received on these 400 shares	2100

▶ Video Solution: Coming Soon

Question 33

Sarang Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	7800000
	(b) Reserves and Surplus	2	1560000
	Total		9360000

II	Assets
	Current Assets
	Cash and Cash Equivalents	3	9360000
	Total		9360000

	Notes to Accounts		Amount	Shares	Per share
		`
1	Share Capital
	Authorised Capital
	1200000 Equity Shares of Rs 10 each		12000000	1200000	10
			0
			12000000
	Issued Capital
	800000 Equity Shares of Rs 10 each		8000000	800000	10
			0
			8000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	780000 Equity Shares of Rs 10 each		7800000	780000	10
			0
			7800000
	Subscribed but not Fully Paid Up
	0 Equity Shares of Rs each Rs called Up		0	0
	Less - Calls in Arrears
			0

	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share		7800000
	Capital
2	Reserves and Surplus
	Securities Premium Reserve		1560000	780000	2
3	Cash and Cash Equivalents
	Cash at Bank		9360000

▶ Video Solution: Coming Soon

Question 34

In the books of Climax Ltd

Date	Particulars	Dr	Cr	Shares	Per share
1st Jan	Equity Share 2nd and Final Call A/c	100000		50000
	To Equity Share Capital A/c		100000		2
	( transfer to share capital entry, call money due, )		0
	( Being share 2nd and Final Call money for 50000
	shares transferred to Share Capital A/c @ Rs 2 per
	share)

15th Jan	Bank A/c	99800		49900	2
	Calls in Arrears A/c	200		100	2
	To Equity Share 2nd and Final Call A/c		100000
	( Being share 2nd and Final Call money received for
	49900 shares @ Rs 2 per share )

▶ Video Solution: Coming Soon

Question 35

In the books of Avon Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	50000		10000	5
To Equity Share Application A/c		50000
( Being share application money received for 10000
shares @ Rs 5 per share)

Equity Share Application A/c	50000		10000
To Equity Share Capital A/c		50000		5
		0
( Being share application money received for 10000
shares transferred to Share Capital A/c @ Rs 5 per
share)

Equity Share Allotment A/c	100000		10000	10
To Equity Share Capital A/c		50000	10000	5
To Securities Premium Reserve A/c		50000	10000	5
( Being share allotment money for 10000 shares
transferred to Share Capital A/c @ Rs 5 per share
and Securities Premium Reserve A/c @ Rs 5 per
share)

Bank A/c	100000		10000	10
To Equity Share Allotment A/c		100000
( Being share allotment money received for 10000
shares @ Rs 10 per share )

Equity Share 1st Call A/c	50000		10000
To Equity Share Capital A/c		50000		5
		0
( Being share 1st Call money for 10000 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	50000		10000	5
To Equity Share 1st Call A/c		50000
( Being share 1st Call money received for 10000
shares @ Rs 5 per share )

Equity Share 2nd Call A/c	50000		10000
To Equity Share Capital A/c		50000		5
		0
( Being share 2nd Call money for 10000 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	49000		9800	5
To Equity Share 2nd Call A/c		49000	(10000-200)
OR

Bank A/c Dr..	49000		9800	5
Calls in Arrears A/c Dr..	1000		200	5
To Equity Share 2nd Call A/c		50000	10000	5
( Being share 2nd Call money received for 9800
shares @ Rs 5 per share )

Equity Share 3rd and Final Call A/c	50000		10000
To Equity Share Capital A/c		50000		5
		0
( Being share 3rd and Final Call money for 10000
shares transferred to Share Capital A/c @ Rs 5 per
share)

Bank A/c	48000		9600	5
To Equity Share 3rd and Final Call A/c		48000	(10000-400)

OR
Bank A/c Dr..	48000		9600	5
Calls in Arrears A/c Dr..	2000		400	5
To Equity Share 3rd and Final Call A/c		50000	10000	5

( Being share 3rd and Final Call money received for
9600 shares @ Rs 5 per share )

Avon Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	247000
	(b) Reserves and Surplus	2	50000
	Total		297000

II	Assets
	Current Assets
	Cash and Cash Equivalents	3	297000
	Total		297000

	Notes to Accounts		Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	Equity Shares of Rs each		0
			0
			0
	Issued Capital
	10000 Equity Shares of Rs 25 each		250000	10000	25
			0
			250000
	Subscribed Capital
	Subscribed and Fully Paid Up
	9600 Equity Shares of Rs 25 each		240000	9600	25
			0
			240000
	Subscribed but not Fully Paid Up
	400 Equity Shares of Rs 25 each Rs called Up	10000		400	25
	Less - Calls in Arrears	3000	7000
			0

	Add - Forefeited Shares
	Amount in the Balance Sheet against Share Capital		247000

2	Reserves and Surplus
	Securities Premium Reserve		50000	10000	5
3	Cash and Cash Equivalents
	Cash at Bank		297000

Note :
Calls in Arrears :
Share 2nd Call	200	5	1000
Share 3rd and Final Call	400	5	2000
Total			3000

▶ Video Solution: Coming Soon

Question 36

Usha Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	529000
	(b) Reserves and Surplus	2	0
	Total		529000

II	Assets
	Current Assets
	Cash and Cash Equivalents	3	529000
	Total		529000

	Notes to Accounts		Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	10000 Equity Shares of Rs 100 each		1000000	10000	100
			0
			1000000
	Issued Capital
	9000 Equity Shares of Rs 100 each		900000	9000	100
			0
			900000
	Subscribed Capital
	Subscribed and Fully Paid Up
	Equity Shares of Rs each		0
			0
			0
	Subscribed but not Fully Paid Up
	9000 Equity Shares of Rs 100 each Rs 60 called Up	540000		9000	100
	Less - Calls in Arrears	11000	529000
			0

	Add - Forefeited Shares
	Amount in the Balance Sheet against Share Capital		529000

2	Reserves and Surplus
	Securities Premium Reserve		0
3	Cash and Cash Equivalents
	Cash at Bank		529000

Working Note :

Application money received		360000
Amount payable on application (40% of Rs 100)		40
No of Applications received		9000

Allotment money due		180000	9000	20
Less - Amount received on allotment		169000
Balance Calls in Arrears		11000

a) Authorised Capital		1000000	10000	100
b) Issued Capital		900000	9000	100
c) Subscribed Capital		900000	9000	100
d) Called Up Capital		540000	9000	60
e) Paid up Capital	540000
Less - Calls in Arrears	11000	529000
f) Calls in Arrears		11000

▶ Video Solution: Coming Soon

Question 37

Particulars	Dr	Cr	Shares	Per share
Sundry Assets A/c Dr..	25000
To Moon Ltd./ Vendor		25000
(Being assets purchased from Moon Ltd.)

Moon Ltd. A/c Dr..	25000
To Equity Share Capital A/c		20000	2000	10
To Capital Reserve A/c		5000	2000	2.5
(Being 2000 shares @ Rs 10 each issued against
assets purchased)

Working Note :

Calculate no of shares issued.

In this case shares are are issued at a premium as assets are for Rs 25000

Total value of assets			25000
No of shares issued			2000
Issue price per share			12.5
Face Value per share			10
Premium per share			2.5

▶ Video Solution: Coming Soon

Question 38

Particulars	Dr	Cr	Shares	Per share
Plant and Machinery A/c Dr..	100000
To Vendor A/c		100000
(Being Plant and machinery Purchased for Rs
100000)

Vendor A/c Dr..	100000
To Equity Share Capital A/c		80000	800	100
To Security Premium Reserve A/c		20000	800	25
(Being 800 shares @ Rs 100 each issued at 25%
premium against Plant and machinery purchased)

Face Value per share			100
Premium per share			25
Issue Price per share			125
Number of shares issued			800
Purchase consideration			100000

Since PC = Value of Assets purchased, so no goodwill and no capital reserve

Understand that Amrit Dhara Ltd is the buyer company and not the vendor company

The name of vendor company is not given in question , so in journal , we simply write as vendor A/c

▶ Video Solution: Coming Soon

Question 39

Particulars	Dr	Cr	Shares	Per share
Furniture A/c Dr..	220000
To CD Ltd A/c		220000
(Being Furniture purchased from CD Ltd for Rs
2,20,000)

CD Ltd A/c Dr..	220000		2000
To 9% Preference Share Capital A/c		200000	2000	100
To Security Premium Reserve A/c		20000	2000	10
(Being 2000 shares @ Rs 100 each issued at 10%
premium to CD Ltd)

Note :
Sum paid through shares issued	220000
Per Share issue price	110
No of shares issued	2000	(220000/110)

Note :
Face Value per share	100
Premium per share @ 10%	10
Issue Price per share	110

Since PC = Value of Assets purchased,
so no goodwill and no capital reserve

▶ Video Solution: Coming Soon

Question 40

Particulars	Dr	Cr	Shares	Per share
Machinery A/c Dr..	1000000
To Fair Deals Ltd A/c		1000000
(Being Machinery purchased from Fair Deals Ltd for
Rs 10,00,000)

Fair Deals Ltd A/c Dr..	1000000		80000
To Equity Share Capital A/c		800000	80000	10
To Security Premium Reserve A/c		200000	80000	2.5
(Being 80000 shares @ Rs 10 each issued at 25%
premium to Fair Deals Ltd)

Note :
Sum paid through shares issued	1000000
Per Share Value	12.5
No of shares issued	80000	(1000000/12.5)

Note :
Face Value per share	10
Premium per share @ 10%	2.5
Issue Price per share	12.5

Since PC = Value of Assets purchased,
so no goodwill and no capital reserve

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-60 | Q 61-70 | Q 71-80 | Q 81-90 | Q 91-100 | Q 100-110 | Q 110-115

T S Grewal Solutions – Issue of Shares – All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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