T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 81 to 90

Solution for Q 81 to 90 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 and reissue of shares issued at par, forfeiture and reissue of shares issued at premium, multiple categories of calls in arrears

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 81

In the books of Slow and Steady Ltd

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	10000		10000	1
To Equity Share Application A/c		10000
( Being share application money received for
10000 shares @ Rs 1 per share)

Equity Share Application A/c	10000
To Equity Share Capital A/c		10000	10000	1

( Being share application money received for 10000 shares
transferred to Share Capital A/c @ Rs 1 per share and
excess money refunded/adjusted towards allotment)

Equity Share Allotment A/c	20000		10000
To Equity Share Capital A/c		20000		2
		0
( Being share allotment money for 10000 shares
transferred to Share Capital A/c @ Rs 2 per share)

Bank A/c	19600		9800	2
To Equity Share Allotment A/c		19600
( Being share allotment money received for 9800 shares
at Rs 2 per share after adjusting excess money received
on application due to pro rata allotment)

Equity Share 1st Call A/c	30000		10000
To Equity Share Capital A/c		30000		3
		0
( Being share 1st Call money for 10000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	28950		9650
To Equity Share 1st Call A/c		28950		3
( Being share 1st Call money received for 9650 shares
at Rs 3 per share after adjusting excess money received
on application due to pro rata allotment)

Equity Share 2nd and Final Call A/c	40000		10000
To Equity Share Capital A/c		40000		4
		0
( Being share 2nd and Final Call money for 10000 shares
transferred to Share Capital A/c @ Rs 4 per share)

Bank A/c	38400		9600
To Equity Share 1st and Final Call A/c		38400		4
( Being share 2nd and Final Call money received for 9600
shares @ Rs 4 per share after adjusting excess money
received on application due to pro rata allotment)

Share Capital A/c Dr..	4000		400
To Forfeited Shares A/c		950
To Share Allotment A/c		400
To Share 1st Call A/c		1050
To Share 2nd Call A/c		1600
(Being 400 shares forfeited due to non payment of
allotment and Call money)

Bank A/c Dr..	3800		400	9.5
Forfeited Shares A/c Dr…	200		400	0.5
To Share Capital A/c		4000	400	10
(Being 400 shares reissued)

Forfeited Shares A/c Dr..	750
To Capital Reserve A/c		750
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

▶ Video Solution: Coming Soon

Question 82

In the books of Venus Ltd

Particulars	Dr	Cr	Shares	Per Share
Building A/c Dr..	700000		70000	10
To Star Ltd.		700000
(Being assets purchased from Star Ltd.)

Star Ltd. A/c Dr..	700000		70000	10
To Equity Share Capital A/c		700000
(Being 70000 shares @ Rs 10 each issued against
Building purchased)

Bank A/c Dr..	600000		200000	3
To Equity Share Application A/c		600000
( Being share application money received for 200000
shares @ Rs 3 per share)

Equity Share Application A/c	600000		200000
To Equity Share Capital A/c		600000		3
		0
( Being share application money received for 200000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Equity Share Allotment A/c	400000		200000
To Equity Share Capital A/c		400000		2
( Being share allotment money for 200000 shares transferred		0
to Share Capital A/c @ Rs 2 per share)

Bank A/c	380000		190000	2
To Equity Share Allotment A/c		380000
( Being share allotment money received for 190000
shares @ Rs 2 per share )

Equity Share 1st Call A/c	400000		200000
To Equity Share Capital A/c		400000		2
( Being share 1st Call money for 200000 shares		0
transferred to Share Capital A/c @ Rs 2 per share)

Bank A/c	320000		160000	2
To Equity Share 1st Call A/c		320000	160000	2
( Being share 1st Call money received for 160000 shares @ Rs 2
per share and calls in advance received for 300 shares)

Equity Share 2nd Call A/c	600000		200000
To Equity Share Capital A/c		600000		3
( Being share 2nd Call money for 200000 shares		0
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	300000		100000	3
To Equity Share 2nd Call A/c		300000
( Being share 2nd Call money received for 100000 shares @ Rs 3
per share and calls in advance received for 300 shares)

Share Capital A/c Dr..	100000		10000	10
To Forfeited Shares A/c		30000	10000	3
To Share Allotment A/c		20000	10000	2
To Share 1st Call A/c		20000	10000	2
To Share 2nd and Final Call A/c		30000	10000	3
(Being 10000 shares forfeited due to non payment of
various call money)

Bank A/c Dr..	120000		10000	12
To Share Capital A/c		100000	10000	10
To Securities Premium Reserve A/c		20000	10000	2
(Being 10000 shares reissued)

Forfeited Shares A/c Dr..	30000
To Capital Reserve A/c		30000
(Being balance in share forfeiture A/c transferred to
Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 10000 shares					30000
Discount given on reissue					0
Amount transferred to Capital Reserve					30000

Name of Allottee	Share	Application	Rs 3	Share	Allotment	Rs 2	Share	1st Call	Rs 2	Share	2nd Call	Rs 3
	Due	Received	Arrears	Due	Received	Arrears	Due	Received	Arrears	Due	Received	Arrears
On 100000 shares	300000	300000	0	200000	200000	0	200000	200000	0	300000	300000	0
On 60000 shares	180000	180000	0	120000	120000	0	120000	120000	0	180000	0	180000
On 30000 shares	90000	90000	0	60000	60000	0	60000	0	60000	90000	0	90000
On 10000 shares	30000	30000	0	20000	0	20000	20000	0	20000	30000	0	30000

Total	600000	600000	0	400000	380000	20000	400000	320000	80000	600000	300000	300000

▶ Video Solution: Coming Soon

Question 83

In the books of Part Hospitality Ltd.

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	40000		4000	10
To Forfeited Shares A/c		28000	4000	7
To 1st and Final Call		12000	4000	3
(Being 4000 share forfeited due to non payment
of Call money)

Bank A/c Dr..	10000		2000	5
Forfeited Shares A/c Dr..	10000		2000	5
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 balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note :
Rakesh paying calls in advance is not relevant as question is asking only for entries for reissue

Note :
Amount forfeited on 4000 shares
So, Amount forfeited on 2000 shares which are reissued
Less - Disocunt on Reissue
Capital Reserve

Solve, 14000-x = 4000. So x = 10000
Rs 10000 discount given on reissue of 2000 shares. Hence discount per share is Rs 5.

Steps :
Make forfeiture entry or simply calculate the credit to Forfeited Shares A/c
Find the amount forfeited on no of shares reissued
Discount on reissue = Amount forfeited - capital reserve
Debit to Bank A/c in reissue entry = Credit to share capital - discount on reissue

▶ Video Solution: Coming Soon

Question 84

In the books of Grofers Ltd

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	40000		4000	10
To Forfeited Shares A/c		28000	4000	7
To 1st and Final Call		12000	4000	3
(Being 4000 share forfeited due to non payment
of Call money)

Bank A/c Dr..	20000		2000	10
Forfeited Shares A/c Dr..	0		2000	0
To Share Capital A/c		20000	2000	10
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	14000
To Capital Reserve A/c		14000
(Being balance in Forfeited Shares A/c transferred

Note :
Amount forfeited on 4000 shares
So, Amount forfeited on 2000 shares which are reissued
Less - Discount on Reissue
Capital Reserve

Solve, 14000-x = 14000. So x = 0
No discount given on reissue of 2000 shares. Hence discount per
share is Nil. Reissue price per share is Rs 10

Steps :
Make forfeiture entry or simply calclate the credit to Forfeited Shares A/c
Find the amount forfeited on no of shares reissued
Discount on reissue = Amount forfeited - capital reserve
Debit to Bank A/c in reissue entry = Credit to share capital - discount on reissue

▶ Video Solution: Coming Soon

Question 85

In the books of Software Ltd

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	40000		20000	2
To Equity Share Application A/c		40000
( Being share application money received for 20000
shares @ Rs 2 per share)

Equity Share Application A/c	40000		20000
To Equity Share Capital A/c		40000		2
( Being share application money received for 20000 shares		0
transferred to Share Capital A/c @ Rs 2 per share)

Equity Share Allotment A/c	80000		20000
To Equity Share Capital A/c		80000		4
( Being share allotment money for 20000 shares transferred		0
to Share Capital A/c @ Rs 4 per share)

Bank A/c	80000		20000	4
To Equity Share Allotment A/c		80000
( Being share allotment money received for 20000
shares @ Rs 4 per share )

Equity Share 1st Call A/c	40000		20000
To Equity Share Capital A/c		40000		2
( Being share 1st Call money for 20000 shares transferred		0
to Share Capital A/c @ Rs 2 per share)

Bank A/c	38600		19000	2
To Calls in Advance A/c		600	300	2
To Equity Share 1st Call A/c		38000	19000	2
( Being share 1st Call money received for 19000 shares @ Rs 2 per
share and calls in advance received for 300 shares)

Share Capital A/c Dr..	8000		1000	8
To Forfeited Shares A/c		6000	1000	6
To Share 1st and Final Call A/c		2000	1000	2
(Being 1000 shares forfeited due to non payment of
1st Call money)

Equity Share 2nd and Final Call A/c	38000		19000
To Equity Share Capital A/c		38000		2
( Being share 2nd and Final Call money for 19000 shares		0
transferred to Share Capital A/c @ Rs 2 per share)

Bank A/c	37400		18700	2
Calls in Advance A/c Dr..	600		300	2
To Equity Share 1st Call A/c		38000	19000	2
( Being share 1st Call money received for 18700 shares @ Rs 2 per share
and calls in advance received earlier adjusted)

Bank A/c Dr..	6000		1000	6
Forfeited Shares A/c Dr..	4000		1000	4
To Share Capital A/c		10000	1000	10
(Being 1000 shares reissued)

Forfeited Shares A/c Dr..	2000
To Capital Reserve A/c		2000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 200 shares					6000
Discount given on reissue					4000
Amount transferred to Capital Reserve					2000

Software Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	200000
	(b) Reserves and Surplus	2	2000
	Current Liabilities
	Other Current Liabilities
	Total		202000

II	Assets
	Tangible Assets
	Land	3
	Current Assets
	Cash and Cash Equivalents	4	202000
	Total		202000

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	50000 Equity Shares of Rs 10 each	500000	50000	10
		0
		500000
	Issued Capital
	20000 Equity Shares of Rs 10 each	200000	20000	10
		0
		200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	20000 Equity Shares of Rs 10 each	200000	20000	10

		0

	Subscribed but not Fully Paid Up
	Equity Shares of Rs each Rs called Up	0
	Less - Calls in Arrears	0
		0

	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share	200000
	Capital
2	Reserves and Surplus
	Capital Reserve	2000
3	Tangible Assets
	Land
4	Cash and Cash Equivalents
	Cash at Bank	202000

▶ Video Solution: Coming Soon

Question 86

In the books of X Ltd

Journal

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	900		150	6
Securities Premium Reserve A/c Dr..	600		150	4
To Forfeited Shares A/c		300	150	2
To Share Allotment A/c		1200	150	8
(Being 150 share forfeited due to non payment of
allotment money)

Bank A/c Dr..	2250		150	15
Forfeited Shares A/c Dr..	0
To Share Capital A/c		1500	150	10
To Securities Premium Reserve A/c		750	150	5
(Being 150 shares reissued)

Forfeited Shares A/c Dr..	300
To Capital Reserve A/c		300
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 150 shares					300
Discount given on reissue
Amount transferred to Capital Reserve					300

Note : As the premium has not been received so Securities
Premium Reserve A/c will be reversed at the time of forfeiture

Premium

▶ Video Solution: Coming Soon

Question 87

Application	4
Allotmet	3	2
1st and Final Call	3
Total	10	2

In the books of X Ltd

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	3500		500	7
Securities Premium Reserve A/c Dr..	1000		500	2
To Forfeited Shares A/c		2000	500	4
To Share Allotment A/c		2500	500	5
(Being 500 share forfeited due to non payment of
allotment money)

Bank A/c Dr..	5500		500	11
Forfeited Shares A/c Dr..	0
To Share Capital A/c		5000	500	10
To Securities Premium Reserve A/c		500	500	1
(Being 500 shares reissued)

Forfeited Shares A/c Dr..	2000
To Capital Reserve A/c		2000
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 150 shares					2000
Discount given on reissue					0
Amount transferred to Capital Reserve					2000

As the premium has not been received so Securities Premium
Reserve A/c will be reversed at the time of forfeiture

▶ Video Solution: Coming Soon

Question 88

In the books of …

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	2400		300	8
To Forfeited Shares A/c		1800	300	6
To Final Call A/c		600	300	2
(Being 300 share forfeited due to non payment
of Call money)

Bank A/c Dr..	1500		150	10
Forfeited Shares A/c Dr..	0		150	0
To Share Capital A/c		1500	150	10
(Being 150 shares reissued)

Forfeited Shares A/c Dr..	900
To Capital Reserve A/c		900
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount paid on 150 shares					900
Discount given on reissue
Amount transferred to Capital Reserve					900

No entry required for premium on forfeiture as premium already paid fully

▶ Video Solution: Coming Soon

Question 89

In the books of …

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	800		100	8
Securities Premium Reserve A/c Dr..	200		100	2
To Forfeited Shares A/c		500	100	5
To Share Allotment A/c		500	100	5
(Being 300 share forfeited due to non payment of
Allotment money)

Bank A/c Dr..	490		70	7
Forfeited Shares A/c Dr..	70		70	1
To Share Capital A/c		560	70	8
(Being 150 shares reissued)

Forfeited Shares A/c Dr..	280
To Capital Reserve A/c		280
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 70 shares					350
Discount given on reissue					70
Amount transferred to Capital Reserve					280

▶ Video Solution: Coming Soon

Question 90

In the books of JCV Ltd

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	1200		200	6
Securities Premium Reserve A/c Dr..	400		200	2
To Forfeited Shares A/c		1000	200	5
To Share Allotment A/c		600	200	3
(Being 200 share forfeited due to non payment of
allotment money)

Bank A/c Dr..	800		100	8
Forfeited Shares A/c Dr..	200		100	2
To Share Capital A/c		1000	100	10
(Being 100 shares reissued)

Forfeited Shares A/c Dr..	300
To Capital Reserve A/c		300
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount paid on 100 shares					500
Discount given on reissue					200
Amount transferred to Capital Reserve					300

As the premium has not been received so Securities Premium
Reserve A/c will be reversed at the time of forfeiture

▶ Video Solution: Coming Soon

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