T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 61 to 70

Solution for Q 61 to 70 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, Maximum permissible discount and minimum reissue price, treatment of gain on reissue of forfeited shares

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 61

In the books of Vani Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	600000		150000	4
To Equity Share Application and allotment A/c		600000
( Being share application money received for
150000 shares @ Rs 4 per share)

Equity Share Application and Alotment A/c	600000		150000	4
To Equity Share Capital A/c		300000	100000	3
To Calls in Advance A/c		200000	50000	4
To Securities Premium A/c		100000	100000	1
		0
( Being share application money received for
150000 shares transferred to Share Capital A/c @
Rs 3 per share)

Equity Share 1st Call A/c	400000		100000
To Equity Share Capital A/c		400000		4
		0
( Being share allotment money for 100000 shares
transferred to Share Capital A/c @ Rs 4 per share)

Bank A/c Dr..	199200		99600	4
Calls in Arrears A/c Dr..	800
Calls in Advance A/c Dr..	200000
To Equity Share 1st Call A/c		400000	100000	4
( Being share 1st Call money received for 99600
shares @ Rs 4 per share )

Share Capital A/c Dr..	2800		400	7

To Forfeited Shares A/c		2000
To Calls in Arrears A/c		800

(Being 400 shares forfeited due to non payment of
1st Call money)

Bank A/c Dr..	1600		200	8
Forfeited Shares A/c Dr..	400		200	2
To Share Capital A/c		2000	200	10
(Being 200 shares reissued)

Forfeited Shares A/c Dr..	600
To Capital Reserve A/c		600
(Being balance in Forfeited Shares A/c transferred to
Capital Reserve)

Note :				Parth
Shares Applied				600
Shares Allotted				400

Application money paid				2400
Amt used on application				1600
Excess money				800


1st Call money due				1600
Less - Excess money				800
Calls in Arrears				800

Note : Amount received on 1st Call
Amount due on 1st Call	400000	(100000*4)
Less - excess on application	200000	(50000*4)
Less - Arrears of Sumit	800


Amount received on 1st Call	199200

Note : Calculation of Capital Reserve	Amount	Shares	Per share
Amount forfeited	2000	400	5
Amount forfeited on half shares	1000	200	5
Less - Discount on Reissue	400

Capital Reserve	600

▶ Video Solution: Coming Soon

Question 62

Application and Allotment	30	10	40
First Call	40	5	45
Second and Final Call	30	35	65
Total	100	50	150

In the books of Radhika Ltd

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1560000		39000	40
To Equity Share Application and Allotment A/c		1560000
( Being share application money received for 39000
shares @ Rs 40 per share)

Equity Share Application and Allotment A/c	1560000		39000	40
To Equity Share Capital A/c		1170000		30
To Securities Premium Reserve A/c		390000		10
( Being share application money received for 39000
shares transferred to Share Capital A/c @ Rs 30 per
share and Securities Premium Reserve A/c @ Rs per
share)

Equity Share 1st Call A/c	1755000		39000
To Equity Share Capital A/c		1560000		40
To Securities Premium Reserve A/c		195000		5
( Being share 1st Call money for 39000 shares
transferred to Share Capital A/c @ Rs 40 per share
and Securities Premium Reserve A/c @ Rs 5 per
share)

Bank A/c	1750500		38900	45
Calls in Arrears	4500		100	45
To Equity Share 1st Call A/c		1755000	39000	45
( Being share 1st Call money received for 38900
shares @ Rs 45 per share )

Share Capital A/c Dr..	7000		100	70
Securities Premium Reserve A/c Dr..	500		100	5
To Forfeited Shares A/c		3000	100	30
To Calls in Arrears A/c		4500	100	45

(Being 100 shares forfeited due to non payment of
allotment and 1st Call money)

Bank A/c Dr..	7000		100	70
Forfeited Shares A/c Dr..	3000		100	30
To Share Capital A/c		10000	100	100

(Being shares reissued)

Note :

Since amount forfeited and discount given on reissue

are same no capital reserve is Nil

▶ Video Solution: Coming Soon

Question 63 (i)

	Maximum Permissible discount	5	(Upto the amount actually received)
	Minimum Reissue price	5	(FV - Maximum permissible discount)
			(10-5)

(ii)	Total Amount received till now	5
	Less - Premium	1
	Total Amount received till now excluding premium	4	(Since premium already received)

	Maximum Permissible discount	4
	Minimum Reissue price	6	(FV - Maximum permissible discount)
			(Rs 10 - Rs 4)

(iii)	Total Amount received till now	5

	Maximum Permissible discount	5
	Minimum Reissue price (Rs 10 - Rs 5)	5	(FV - Maximum permissible discount)

Note : Premium is not considered while finding maximum reissue price. Its calculated only based on FV

▶ Video Solution: Coming Soon

Question 63

(i)	Maximum Permissible discount	5	(Upto the amount actually received)
	Minimum Reissue price	5	(FV - Maximum permissible discount)
			(10-5)

(ii)	Total Amount received till now	5
	Less - Premium	1
	Total Amount received till now excluding premium	4	(Since premium already received)

	Maximum Permissible discount	4
	Minimum Reissue price	6	(FV - Maximum permissible discount)
			(Rs 10 - Rs 4)

(iii)	Total Amount received till now	5

	Maximum Permissible discount	5
	Minimum Reissue price (Rs 10 - Rs 5)	5	(FV - Maximum permissible discount)

Note : Premium is not considered while finding maximum reissue price. Its calculated only based on FV

▶ Video Solution: Coming Soon

Question 64

Case	Particulars	Per share	on 500 shares
Case 1	Maximum Permissible discount	9	4500
	(Upto the amount actually received)		(500*(4+3+2)
	Minimum Reissue price	1	500
	(FV - Maximum permissible discount)		500*(10-9)

		Per share	on 500 shares
Case 2	Maximum Permissible discount	7	3500
	(Upto the amount actually received)		(500*(4+3)
	Minimum Reissue price	3	1500
	(FV - Maximum permissible discount)		500*(10-7)

		Per share	on 500 shares
Case 3	Maximum Permissible discount	4	2000
	(Upto the amount actually received)		(500*(4)
	Minimum Reissue price	6	3000
	(FV - Maximum permissible discount)		500*(10-4)

		Per share	on 500 shares
Case 4	Maximum Permissible discount	4	2000
	(Upto the amount actually received)		(500*(4)
	Minimum Reissue price	6	3000
	(FV - Maximum permissible discount)		500*(9-4)

Note : At the time of reissue , shares are considered fully paid up

so we will subtract amount received from Rs 10 and not by Rs 9

▶ Video Solution: Coming Soon

Question 65

Particulars	FV	Premium
Application	15
Allotment	10	5
1st Call	15
2nd and Final Call (Not yet called)	10
Total	50	5

Amount forfeited (Only application money is paid)	15	per share
No of shares forfeited	1000
Total Amount forfeited	15000

Case 1	Paid Up Value per share	40
	Issue price per share	45
	Premium received on reissue per share	5
	No of shares	1000
	Total Premium received on reissue	5000

	Amount transferred to Capital Reserve
	Total Amount forfeited	15000
	Less - Discount on reissue	0
		15000

Case 2	Paid Up Value per share	40
	Issue price per share	40
	No Premium and no discount

	Amount transferred to Capital Reserve
	Total Amount forfeited	15000
	Less - Discount on reissue	0
		15000

Case 3	Paid Up Value per share	40
	Issue price per share	35
	Discount on Reissue	5
	No of shares	1000
	Total discount on reissue	5000

	Amount transferred to Capital Reserve
	Total Amount forfeited	15000
	Less - Discount on reissue	5000
		10000

Case 4	Paid Up Value per share	40
	Issue price per share	25
	Discount on Reissue	15
	No of shares	1000
	Total discount on reissue	15000

	Amount transferred to Capital Reserve
	Total Amount forfeited	15000
	Less - Discount on reissue	15000
		0

Case 5	Paid Up Value per share	50
	Issue price per share	35
	Discount on Reissue	15
	No of shares	1000
	Total discount on reissue	15000

	Amount transferred to Capital Reserve
	Total Amount forfeited	15000
	Less - Discount on reissue	15000

▶ Video Solution: Coming Soon

Question 66

Particulars	FV	Premium
Application	15
Allotment	10	5
1st Call	15
2nd and Final Call (Not yet called)	10
Total	50	5

Amount forfeited (Only application money is paid)	15	per share
No of shares forfeited	2000
Total Amount forfeited	30000

Case 1	Paid Up Value per share	40
	Issue price per share	45
	Premium received on reissue per share	5	(45-40)
	No of shares reissued	200
	Total Premium received on reissue	1000	(200*5)

	Amount transferred to Capital Reserve
	Amount forfeited per share	15
	No of shares reissued	200
	Total Amount forfeited	3000
	Discount on reissue	0
		3000

Case 2	Paid Up Value per share	40
	Issue price per share	40
	Premium received on reissue per share	0	(40-40)
	There is no premium and no disocunt on reissue


	Amount transferred to Capital Reserve
	Amount forfeited per share	15
	No of shares reissued	200
	Total Amount forfeited	3000
	Discount on reissue	0
		3000

Case 3	Paid Up Value per share	40
	Issue price per share	35
	Discount on reissue per share	5	(40-35)
	No of shares reissued	200
	Total Discount on reissue	1000	(200*5)

	Amount transferred to Capital Reserve
	Amount forfeited per share	15
	No of shares reissued	200
	Total Amount forfeited	3000
	Discount on reissue	1000
		2000

Case 4	Paid Up Value per share	40
	Issue price per share	25
	Discount on reissue per share	15	(40-25)
	No of shares reissued	200
	Total Discount on reissue	3000	(200*15)

	Amount transferred to Capital Reserve
	Amount forfeited per share	15
	No of shares reissued	200
	Total Amount forfeited	3000
	Discount on reissue	3000
		0

Case 5	Paid Up Value per share	50
	Issue price per share	35
	Discount on reissue per share	15	(50-35)
	No of shares reissued	200
	Total Discount on reissue	3000	(200*15)

	Amount transferred to Capital Reserve
	Amount forfeited per share	15
	No of shares reissued	200
	Total Amount forfeited	3000
	Discount on reissue	3000

▶ Video Solution: Coming Soon

Question 67

(i)	No of shares forfeited	3000	(Given)
	Amount credited to forfeited shares A/c	5000	(Given)
	Amount forfeited per share (5000/3000)	1.67

	No of shares reissued	1800	(Given)
	Amount forfeited on shares reissued	3000	(1800*1.67)
	Discount on reissue (10-9)	1
	Total Discount on reissue	1800	(1800*1)

	Amount transferred to capital reserve	1200	(3000-1800)

(ii)	No of shares forfeited	20	(Given)
	Amount forfeited per share	20	(Given)
	Amount credited to forfeited shares A/c	400	(20*20)

	No of shares reissued	15	(Given)
	Amount forfeited on shares reissued	300	(20*15)
	Discount on reissue (10-9)	15	(60-45)
	Total Discount on reissue	225	(15*15)

	Amount transferred to capital reserve	75	(300-225)

▶ Video Solution: Coming Soon

Question 68

Journal

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	40000		4000	10
To Forfeited Shares A/c		12000	4000	3
To Calls in Arrears A/c		28000	4000	7
(Being 4000 shares forfeited)

Bank A/c Dr..	18000		2000	9
Forfeited Shares A/c Dr..	2000		2000	1
To Share Capital A/c		20000	2000	10
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	4000
To Capital Reserve A/c		4000
(Being amount transferred to capital reserve)

Note : Amount transferred to capital reserve
Amount forfeited per share				3
No of shares reissued				2000
Amount forfeited on shares reissued				6000
Less - Discount on Reissue				2000
Capital Reserve				4000

▶ Video Solution: Coming Soon

Question 69

In the books of Alfa Ltd

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	67500		900	75
To Forfeited Shares A/c		22500	900	25
To Share Allotment A/c		27000	900	30
To Share 1st Call A/c		18000	900	20
(Being 900 shares forfeited due to non payment of
allotment and 1st Call money)

Bank A/c Dr..	81000		900	90
To Share Capital A/c		67500	900	75
To Securities Premium Reserve A/c		13500	900	15
(Being 900 shares reissued)

Forfeited Shares A/c Dr..	22500
To Capital Reserve A/c		22500
(Being balance in Forfeited Shares A/c transferred to
Capital Reserve)

	Working Note :
	Calculation of amount Payable on Application per share
	Face Value per shares		100
Less	Amount payable on Allotment per share	30
	Amount payable on 1st Call per share	20
	Amount payable on 2nd Call per share	25	75

	Amount Payable on Application per share		25

▶ Video Solution: Coming Soon

Question 70

In the books of Max Ltd

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	50000		500	100
To Forfeited Shares A/c		27500	500	55
To Share 1st Call A/c		10000	500	20
To Share 2nd and Final Call A/c		12500	500	25
(Being 500 shares forfeited due to non payment of
1st Call and Final Call money)

Bank A/c Dr..	12500		250	50
Forfeited Shares A/c	12500		250	50
To Share Capital A/c		25000	250	100
(Being 250 shares reissued)

Forfeited Shares A/c Dr..	1250
To Capital Reserve A/c		1250
(Being balance in Forfeited Shares A/c transferred to
Capital Reserve)

	Working Note :
	Amount transferred to Capital Reserve	No of shares	Amount	Per share
	Credit in Forfeited Shares A/c	500	27500	55
	Credit in Forfeited Shares A/c (On shares reissued)	250	13750	(250*55)
Less	Debit in Forfeited Shares A/c
	Paid up Value	100
	Less - Reissue Price	50
	Discount per share	50	12500

	Capital Reserve		1250

▶ 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

Related Posts

Leave a Comment Cancel Reply