T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 51 to 60

Solution for Q 51 to 60 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 forfeiture of shares issued at par, forfeiture of shares issued at premium

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 51

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	90000		10000	9
To Forfeited Shares A/c		50000		5
To Share First Call A/c		40000		4
(Being 5000 shares forfeited due to non payment of
allotment money and call money)

Bank A/c Dr..	36000		4000	9
Forfeited Shares A/c Dr..	4000			1
To Share Capital A/c		40000	4000	10
(Being 4000 shares reissued)

Forfeited Shares A/c Dr..	16000
To Capital Reserve A/c		16000
(Being Balance of Forfeited Shares transferred to
Capital Reserve A/c)

Working Note :
Amount forfeited on shares reissued
Total Amount forfeited					50000
Total shares forfeited					10000
Amount forfeited per share					5

Number of shares reissued					4000
Amount forfeied on shares reissued					20000

Working Note :
Calculation of capital reserve
Total Amount forfeited on shares reissued					20000
Less - discount on shares reissued					4000
Transfer to capital reserve					16000

▶ Video Solution: Coming Soon

Question 52 (i)

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	30000		3000	10
To Forfeited Shares A/c		24000		8
To Share Final Call A/c		6000		2
(Being 3000 shares forfeited due to non payment of
allotment money and call money)

Bank A/c Dr..	40000		4000	10
To Share Capital A/c		40000	4000	10
(Being 4000 shares reissued)

Forfeited Shares A/c Dr..	24000
To Capital Reserve A/c		24000
(Being Balance of Forfeited Shares transferred to
Capital Reserve A/c)

Working Note :

No working note needed as all forfeited shares reissued

▶ Video Solution: Coming Soon

Question 52 (ii)

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	20000		2000	10
To Forfeited Shares A/c		16000		8
To Share Final Call A/c		4000		2
(Being 3000 shares forfeited due to non payment of
allotment money and call money)

Bank A/c Dr..	20000		2000	10
To Share Capital A/c		14000		7
To Securities Premium Reserve A/c		6000		3
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	16000
To Capital Reserve A/c		16000
(Being Balance of Forfeited Shares transferred to
Capital Reserve A/c)

Working Note :

No working note needed as all forfeited shares reissued

▶ Video Solution: Coming Soon

Question 53

Particulars	Category 1	Category 2	Category 3	Total
No of Shares Applied	40000	50000	2000	92000
No of Shares Alloted	40000	20000	0	60000
No of Shares Rejected	0	30000	2000	32000

Amount Paid on Application	80000	100000	4000	184000
Amount applied towards application to capital	80000	40000	0	120000
Excess Money	0	60000	4000
		Allotment	Refund

Amount Payable on Allotment	120000	60000	0	180000
Less - Advance at the time of application	0	60000	0	60000
Balance Amount Payable	120000	0	0	120000
Less - Actual Amount Paid at the time of allotment	108000			108000
Balance Unpaid on Allotment	12000			12000
Amount Payable on Allotment per share	3			3
No of Shares on which amount unpaid on allotment	4000			4000

Note : The above working shows that the amount Rs 108000 paid at the time of

allotment was paid by category 1 only as no amount was payable by category 2 and category 3

Particulars	Category 1	Category 2	Category 3	Total
Amount Payable on 1st Call	200000	100000	0	300000
Less - Advance at the time of application	0	0	0	0
Balance Amount Payable	200000	100000	0	300000
Less - Actual Amount paid on 1st Call				250000
Balance Unpaid on 1st Call				50000
Amount Payable on 1st Call per share				5
No of Shares on which amount unpaid on allotment				10000

Note that even though the amount is not paid on 1st call on 10000 shares, but as of now the company has

forfeited only those 4000 shares on which the allotment money was also not paid (As given in the question)

In the books of Sangita Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	184000		92000	2
To Equity Share Application A/c		184000
( Being share application money received for 92000
shares @ Rs 2 per share)

Equity Share Application A/c	184000		92000	2
To Equity Share Capital A/c		120000	60000	2
To Equity Share Allotment A/c		60000	30000	2
To Bank A/c		4000	2000	2
		0
( Being share application money received for 92000
shares transferred to Share Capital A/c @ Rs 2 per
share)

Equity Share Allotment A/c	180000		60000
To Equity Share Capital A/c		180000		3
		0
( Being share allotment money for 60000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	108000		56000	3
To Equity Share Allotment A/c		108000
( Being share allotment money received for 56000
shares @ Rs 3 per share )

Equity Share 1st Call A/c	300000		60000
To Equity Share Capital A/c		300000		5
		0
( Being share 1st Call money for 60000 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	250000		50000	5
To Equity Share 1st Call A/c		250000
( Being share 1st Call money received for 50000
shares @ Rs 5 per share )

Share Capital A/c Dr..	40000		4000	10
To Forfeited Shares A/c		8000	4000	2
To Share Allotment A/c		12000	4000	3
To Share 1st Call A/c		20000	4000	5
(Being 4000 shares forfeited due to non payment of
allotment and 1st Call money)

Note :
Calculation of No of shares forfeited
No of shares alloted	60000
Amount due on allotment	180000
Less - Excess amount on application c/f to allotment	60000
Less - Amount received on allotment	108000
Calls in Arrears on allotment	12000
Allotment money per share	3
No of shares forfeited	4000
(Shares where full allotment was made so no excess money)

▶ Video Solution: Coming Soon

Question 54(i)

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	500		100	5
To Forfeited Shares A/c		200	100	2
To Share Allotment A/c		300	100	3
(Being 100 shares forfeited due to non payment of
allotment money)

▶ Video Solution: Coming Soon

Question 54(ii)

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	800		100	8
To Forfeited Shares A/c		200	100	2
To Share Allotment A/c		300	100	3
To Share 1st Call A/c		300	100	3
(Being 100 shares forfeited due to non payment of
allotment and 1st Call money)

▶ Video Solution: Coming Soon

Question 54(iii)

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	1000		100	10
To Forfeited Shares A/c		500	100	5
To Share 1st Call A/c		300	100	3
To Share 2nd and Final Call A/c		200	100	2
(Being 100 shares forfeited due to non payment of
1st Call and 2nd Call money)

▶ Video Solution: Coming Soon

Question 55

In the books of Chand Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	720000		180000	4
To Equity Share Application A/c		720000
( Being share application money received for
180000 shares @ Rs 4 per share)

Equity Share Application A/c	720000		180000	4
To Equity Share Capital A/c		200000	100000	2
To Equity Share Allotment A/c		200000	50000	4
To Bank A/c		120000	30000	4
To Securities Premium Reserve A/c		200000	100000	2
( Being share application money received for
180000 shares transferred to Share Capital A/c @
Rs 2 per share and Securities Premium Reserve A/c
@ Rs 2 per share)

Equity Share Allotment A/c	500000		100000
To Equity Share Capital A/c		500000		5
		0
( Being share allotment money for 100000 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	300000		100000	5
To Equity Share Allotment A/c		300000
( Being share allotment money received for 100000
shares @ Rs 5 per share )

Equity Share 1st Call A/c	300000		100000
To Equity Share Capital A/c		300000		3
		0
( Being share 1st Call money for 100000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	285000		95000	3
To Equity Share 1st Call A/c		285000
( Being share 1st Call money received for 95000
shares @ Rs 3 per share )

Share Capital A/c Dr..	50000		5000	10
To Forfeited Shares A/c		35000	5000	7
To Share 1st Call A/c		15000	5000	3
(Being 5000 shares forfeited due to non payment of
1st Call money)

Note - Amount received on allotment
Amount due on allotment	100000	5	500000
Less - Amount received in advance			200000
Amount received			300000

No of shares Applied				7500
No of shares Allotted				5000

Amount paid on application				30000
Amount used on application				20000
Excess transferred to Allotment				10000

Amount due on allotment				25000
Less - Excess amount on application				10000
Balance amount paid on allotment				15000

Amount due on 1st Call				15000
Less - Amount paid				0
Calls in Arrears				15000

Note - Amount received on 1st Call
Amount due on 1st Call				300000
Less - Calls in Arrears				15000
Amount received on 1st Call				285000

▶ Video Solution: Coming Soon

Question 56

In the books of Sona Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1800000		90000	20
To Equity Share Application A/c		1800000
( Being share application money received for 90000
shares @ Rs 20 per share)

Equity Share Application A/c	1800000		90000	20
To Equity Share Capital A/c		1200000	60000	20
To Equity Share Allotment A/c		400000	20000	20
To Bank A/c		200000	10000	20

( Being share application money received for 90000
shares transferred to Share Capital A/c @ Rs 20 per
share)

Equity Share Allotment A/c	1500000		60000
To Equity Share Capital A/c		1500000		25
		0
( Being share allotment money for 60000 shares
transferred to Share Capital A/c @ Rs 25 per share)

Bank A/c	1089000		59400	25
To Equity Share Allotment A/c		1089000
( Being share allotment money received for 59400
shares @ Rs 25 per share )

Equity Share Capital A/c	27000		600	45
To Forfeited Shares A/c		16000
To Equity Share Allotment A/c		11000
(Being Rahul shares forfeited)

Equity Share 1st Call A/c	297000		59400
To Equity Share Capital A/c		297000		5
		0
( Being share 1st Call money for 59400 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	292000		58400	5
To Equity Share 1st Call A/c		292000
( Being share 1st Call money received for 58400
shares @ Rs 5 per share )

Share Capital A/c Dr..	50000		1000	50
To Forfeited Shares A/c		45000	1000	45
To Share 1st and final Call A/c		5000	1000	5
(Being Mona shares forfeited)

Working note for Rahul :
Number of shares Applied	800
Number of shares Alllotted	600

Amount paid on application	16000	800	20
Amount adjusted in application	12000	600	20
Excess money towards allotment	4000

Amount due on allotment	15000	600	25
Less - Paid in advance	4000
Calls in Arrears on allotment	11000

Working note for Amount received on allotment
Amount due on allotment	1500000	60000	25
Less - Calls in advance with application	400000
Less - Calls in Arrears of Rahul	11000
Amount received on allotment	1089000

Working note for Amount received on first and final call
Amount due on first and final call	297000	59400	5
Less - Calls in Arrears of Mona	5000	1000	5
Amount received on first and final call	292000

▶ Video Solution: Coming Soon

Question 57

In the books of Ratan Ltd

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	21000		3000	7
To Forfeited Shares A/c		15000	3000	5
To Share 1st Call A/c		6000	3000	2

(Being 300 shares forfeited due to non payment of
1st Call money)

Bank A/c Dr..	20000		2000	10
To Share Capital A/c		20000	2000	10
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	10000
To Capital Reserve A/c		10000
(Being balance in forfeited shares A/c transferred to
capital reserve)

Note : Since the allotment money is already paid which includes premium so premium will not be reversed

Note : Amount transferred to capital reserve
Amount forfeited on 3000 shares	3000	5	15000

Amount forfeited on 2000 shares	2000	5	10000
Less - Discount on reissue			0
Capital Reserve			10000

▶ Video Solution: Coming Soon

Question 58

Particulars	FV	Premium
Application (Balancing figure)	20	0
Allotment	30	0
First Call	30	10
Second and Final Call	20	10
Total	100	20

In the books of Macil Ltd

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	240000		3000	80
Securities Premium Reserve A/c Dr..	30000			10
To Forfeited Shares A/c		60000		20
To Share Allotment A/c		90000		30
To Share 1st Call A/c		120000		40

(Being 3000 shares forfeited due to non payment of
alotment and 1st Call money)

Bank A/c Dr..	160000		2000	80
Forfeited Shares A/c Dr..	20000			10
To Share Capital A/c		180000		90
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	20000
To Capital Reserve A/c		20000
(Being balance in forfeited shares A/c transferred to
capital reserve)

Working Note :
Amount forfeited on shares reissued
Total Amount forfeited				60000
Total shares forfeited				3000
Amount forfeited per share				20

Number of shares reissued				2000
Amount forfeied on shares reissued				40000

Working Note :
Calculation of capital reserve
Total Amount forfeited on shares reissued				40000
Less - discount on shares reissued				20000
Transfer to capital reserve				20000

▶ Video Solution: Coming Soon

Question 59

In the books of Ajanta Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1800000		600000	3
To Equity Share Application A/c		1800000
( Being share application money received for
600000 shares @ Rs 3 per share)

Equity Share Application A/c	1800000		600000	3
To Equity Share Capital A/c		1500000	500000	3
To Equity Share Allotment A/c		300000	100000	3
		0
		0
( Being share application money received for
600000 shares transferred to Share Capital A/c @
Rs 3 per share)

Equity Share Allotment A/c	2500000		500000
To Equity Share Capital A/c		2000000		4
To Securities Premium Reserve A/c		500000		1
( Being share allotment money for 500000 shares
transferred to Share Capital A/c @ Rs 4 per share
and Securities Premium Reserve A/c @ Rs 1 per
share)

Bank A/c	2195600
Calls in Arrears A/c	4400
To Equity Share Allotment A/c		2200000
( Being share allotment money received for shares
)

Equity Share 1st Call A/c	1500000		500000
To Equity Share Capital A/c		1500000		3
		0
( Being share 1st Call money for 500000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	1497000		499000	3
Calls in Arrears	3000
To Equity Share 1st Call A/c		1500000
( Being share 1st Call money received for 499000
shares @ Rs 3 per share )

Share Capital A/c Dr..	10000		1000	10
Securities Premium Reserve A/c Dr..	1000		1000	1
To Forfeited Shares A/c		3600	1000	2
To Calls in Arrears A/c		7400	1000	3
			1000	5
(Being 4000 shares forfeited due to non payment of
allotment and 1st Call money)

Note :			Sumit
Shares Applied			1200
Shares Allotted			1000

Application money paid			3600
Amt used on application			3000
Excess money			600

Particulars	Capital	Premium
Allotment money due	4000	1000
Less - Excess money	600
Calls in Arrears	3400	1000

1st Call money due	3000
Less - Amt Paid	0
Calls in Arrears	3000

Note : Amount received on allotment

Amount due on allotment	2500000	(500000*5)
Less - excess on application	300000	(100000*3)
Less - Arrears of Sumit	4400
Amount paid on Allotment	2195600

▶ Video Solution: Coming Soon

Question 60

In the books of Ankit Ltd

Case	Particulars	Dr	Cr	Shares	Per share
Case 1	Share Capital A/c Dr..	3000		500	6
	Securities Premium Reserve A/c Dr..	1000		500	2
	To Forfeited Shares A/c		1500	500	3
	To Share Allotment A/c		2500	500	5

	(Being 500 shares forfeited due to non payment of
	allotment money)

Case 2	Share Capital A/c Dr..	4000		500	8
	Securities Premium Reserve A/c Dr..	1000		500	2
	To Forfeited Shares A/c		1500	500	3
	To Share Allotment A/c		2500	500	5
	To 1st Call A/c		1000	500	2
	(Being 500 shares forfeited due to non payment of
	allotment and 1st Call money)

Case 3	Share Capital A/c Dr..	4000		500	8
	To Forfeited Shares A/c		3000	500	6
	To 1st Call A/c		1000	500	2
	(Being 500 shares forfeited due to non payment of
	allotment and 1st Call money)

Case 4	Share Capital A/c Dr..	5000		500	10
	To Forfeited Shares A/c		3000	500	6
	To 1st Call A/c		1000	500	2
	To 2nd and Final Call A/c		1000	500	2
	(Being 500 shares forfeited due to non payment of
	both the Call money)

▶ 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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