T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 91 to 100

Solution for Q 91 to 100 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 oversubscriptionn and pro rata allotment, forfeiture and reissue of shares which were issued at par, forfeiture and reissue of shares which were issued at premium, calculation of capital reserve, capital reserve entries when number of shares forfeited and number of shares reissued are different

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 91

In the books of Vishesh Ltd

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	8000		1000	8
Securities Premium Reserve A/c Dr..	2000		1000	2
To Forfeited Share A/c		5000	1000	5
To Share Allotment A/c		5000	1000	5
(Being 1000 share forfeited due to non payment
of allotment money)

Bank A/c Dr..	9600		800	12
Share Forfeiture A/c Dr..	0
To Share Capital A/c		8000	800	10
To Securities Premium Reserve A/c		1600	800	2
(Being 800 shares reissued)

Share Forfeiture A/c Dr..	4000
To Capital Reserve A/c		4000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Bank A/c Dr..	2200		200	11
Share Forfeiture A/c Dr..	0
To Share Capital A/c		2000	200	10
To Securities Premium Reserve A/c		200	200	1
(Being 200 shares reissued)

Forfeited Shares A/c Dr..	1000
To Capital Reserve A/c		1000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

As the premium has not been received so Securities Premium Reserve A/c

will be reversed at the time of forfeiture

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Question 92

Description	Gaurav
Shares Applied	5000
Shares alloted	2500
Application Money paid	15000	(5000*3)
Money used on application	7500	(2500*3)
Excess	7500
	Capital	Premium
Due on Allotment	5000	6250
Excess adjusted on allotment	5000	2500
Calls in Arrears on Allotment		3750

Due on 1st Call	5000
Calls in Arrears on 1st Call	5000

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	17500		2500	7
Securities Premium Reserve A/c Dr..	3750
To Share Forfeiture A/c		12500
To Share Allotment A/c		3750
To 1st Call A/c		5000	2500	2
(Being 2500 share forfeited due to non payment of
allotment and call money)

Bank A/c Dr..	20000		2500	8
Share Forfeiture A/c Dr..	5000		2500	2
To Share Capital A/c		25000	2500	10
(Being 2500 shares reissued)

Share Forfeiture A/c Dr..	7500
To Capital Reserve A/c		7500
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

The premium amount has been received partially at the time of allotment

Total amount credited to share forfeiture A/c will be

(Amount received less portion of premium already received)

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Question 93

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	32000		4000	8
Securities Premium Reserve A/c Dr..	19000		4000
To Share Forfeiture A/c		20000
To Calls in Arrears		31000
		0
(Being 4000 share forfeited due to non payment
of allotment and call money)

Bank A/c Dr..	32000		4000	8
Share Forfeiture A/c Dr..	8000		4000	2
To Share Capital A/c		40000	4000	10
(Being 2500 shares reissued)

Share Forfeiture A/c Dr..	12000
To Capital Reserve A/c		12000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Shares Applied	7000
Shares allotted	4000
Application money paid	21000	(7000*3)
Application money used	12000	(4000*3)
Excess money	9000

	FV	Premium
Due on Allotment	8000	20000
Less - Advance money	8000	1000
Calls in Arrears on allotment	0	19000

Due on 1st Call					12000
Less - Paid					0
Calls in Arrears on 1st Call					12000

▶ Video Solution: Coming Soon

Question 94 (i)

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	16000		2000	8
Securities Premium Reserve A/c Dr..	4000		2000	2
To Share Forfeiture A/c		10000	2000	5
To Share Allotment A/c		10000	2000	5
(Being 2000 share forfeited due to non payment		0
of 1st and Final call money)

Bank A/c Dr..	10500		1500	7
Share Forfeiture A/c Dr..	1500		1500	1
To Share Capital A/c		12000	1500	8
(Being 1500 shares reissued)

Share Forfeiture A/c Dr..	6000
To Capital Reserve A/c		6000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Working Note :

	FV	Premium
Application	5
Allotment	3	2
1st Call	2

Working Note : Transfer to Capital reserve

Amount forfeited on shares reissued				7500
(10000 / 2000 * 1500)
Less - Discount on reissue				1500
Capital Reserve				6000

▶ Video Solution: Coming Soon

Question 94 (ii)

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	27000		3000	9
To Share Forfeiture A/c		18000	3000	6
To Share 1st Call A/c		9000	3000	3
		0
(Being 3000 share forfeited due to non payment
of 1st call money)

Bank A/c Dr..	18000		2000	9
Share Forfeiture A/c Dr..	0		2000	0
To Share Capital A/c		18000	2000	9
(Being 2000 shares reissued)

Share Forfeiture A/c Dr..	12000
To Capital Reserve A/c		12000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Working Note :	FV	Premium
Application and Allotment	6
1st Call	3
2nd Call	1

Working Note : Transfer to Capital reserve

Amount forfeited on shares reissued				12000
(18000 / 3000 * 2000)
Less - Discount on reissue
Capital Reserve				12000

▶ Video Solution: Coming Soon

Question 95

In the books of Telecom Ltd

Journal

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	140000		20000	7
To Equity Share Application A/c		140000
( Being share application money received for 20000
shares @ Rs 7 per share)

Equity Share Application A/c	140000		20000
To Equity Share Capital A/c		40000		2
To Securities Premium Reserve A/c		100000
( Being share application money received for 20000 shares
transferred to Share Capital A/c @ Rs 2 per share and
Securities Premium Reserve A/c @ Rs 5 per share)

Equity Share Allotment A/c	100000		20000
To Equity Share Capital A/c		100000		5
		0
( Being share allotment money for 20000 shares
transferred to Share Capital A/c @ Rs 5 per share)

Bank A/c	99000		19800	5
To Equity Share Allotment A/c		99000
( Being share allotment money received for 19800
shares @ Rs 5 per share )

Equity Share 1st and Final Call A/c	60000		20000
To Equity Share Capital A/c		60000		3
		0
( Being share 1st and Final Call money for 20000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	59400		19800	3
To Equity Share 1st and Final Call A/c		59400
( Being share 1st and Final Call money received for
19800 shares @ Rs 3 per share)

Share Capital A/c Dr..	2000		200	10
To Share Forfeiture A/c		400	200	2
To Share Allotment A/c		1000	200	5
To 1st and Final Call A/c		600	200	3
(Being 200 share forfeited due to non payment
of allotment and call money)

Bank A/c Dr..	1600		160	10
Share Forfeiture A/c Dr..	0		160	0
To Share Capital A/c		1600	160	10
(Being 160 shares reissued)

Share Forfeiture A/c Dr..	320
To Capital Reserve A/c		320
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount credited to forfeiture on 160 shares					320
(400/200 X 160)
Discount given on reissue
Amount transferred to Capital Reserve					320

As the premium was already received on application so securities
premium reserve A/c will not be reversed

	Balance Sheet as at Telecom Ltd

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	199680
	(b) Reserves and Surplus	2	100320
	Current Liabilities
	Other Current Liabilities
	Total		300000

II	Assets
	Tangible Assets
	Land	3
	Current Assets
	Cash and Cash Equivalents	4	300000
	Total		300000

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	Equity Shares of Rs each	0
		0
		0
	Issued Capital
	20000 Equity Shares of Rs 10 each	200000	20000	10
		0
		200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	19960 Equity Shares of Rs 10 each	199600	19960	10

		0
		199600
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each Rs called Up	0
	Less - Calls in Arrears	0
		0

	Add - Forefeited Shares	80
	Amount to be shown in the Balance Sheet against Share	199680
	Capital
2	Reserves and Surplus
	Securities Premium Reserve A/c	100000	20000	5
	Capital Reserve	320
3	Tangible Assets
	Land
4	Cash and Cash Equivalents
	Cash at Bank	300000

	Note :
	Total 200 shares were forfeited. Out of them 160 shares
	were reissued as fully paid up. So total fully paid up share
	capital is 19960 shares
	Balance 40 shares are not a share capital till reissue and
	will be shown in forfeited shares.

▶ Video Solution: Coming Soon

Question 96

In the books Of Healthy Foods Ltd

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	1500000		375000	4
To Equity Share Application A/c		1500000
( Being share application money received for 375000
shares @ Rs 4 per share)

Equity Share Application A/c	1500000		375000
To Equity Share Capital A/c		1500000		4
		0
( Being share application money received for 375000
shares transferred to Share Capital A/c @ Rs 4 per share)

Equity Share Allotment A/c	1875000		375000
To Equity Share Capital A/c		1125000		3
To Securities Premium Reserve A/c		750000	375000
( Being share allotment money for 375000 shares
transferred to Share Capital A/c @ Rs 3 per share and
Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	1750000		350000	5
Calls in Arrears A/c	125000		25000	5
To Equity Share Allotment A/c		1875000	375000	5
( Being share allotment money received for 350000
shares @ Rs 5 per share )

Share Capital A/c Dr..	175000		25000	7
Securities Premium Reserve A/c Dr..	50000		25000	2
To Share Forfeiture A/c		100000	25000	4
To Calls in Arrears A/c		125000	25000	5
(Being 25000 share forfeited due to non payment
of allotment)

Bank A/c Dr..	125000		25000	5
Share Forfeiture A/c Dr..	50000		25000	2
To Share Capital A/c		175000	25000	7
(Being 25000 shares reissued)

Share Forfeiture A/c Dr..	50000
To Capital Reserve A/c		50000
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Equity Share 1st and Final Call A/c	1125000		375000
To Equity Share Capital A/c		1125000		3
		0
( Being share 1st and Final Call money for 375000
shares transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c Dr..	1095000		365000	3
Calls in Arrears A/c Dr..	30000		10000	3
To Equity Share 1st and Final Call A/c		1125000	375000	3
( Being share 1st and Final Call money received
for 365000 shares @ Rs 3 per share)

Amount transferred to Capital Reserve

Amount credited to forfeiture on 25000 shares	100000	(400/200 X 160)
Less - Amount transferred to Capital Reserve	50000
Discount given on reissue	50000	(100000-50000)
No of shares reissued	25000
Discount per share	2	(50000/25000)
Paid Up Value per share	7

Issue Price per share	5	(Rs 7 - Rs 2)

The 1st and final call will be demanded on all the 375000 shares and

not just 350000 shares as the reissued 25000 shares are also partly paid up

▶ Video Solution: Coming Soon

Question 97

In the books of Panasonic Ltd

Particulars	Dr	Cr	Shares	Per Share
Building A/c Dr..	1000000		10000	100
To Vendor A/c		1000000
(Being Building purchased from Vendor
for Rs 100000)

Vendor A/c Dr..	1000000
To Equity Share Capital A/c		1000000
(Being 1000 shares @ Rs 100 each issued to Vendor
against Building purchased

Bank A/c Dr..	90000		9000	10
To Equity Share Application A/c		90000
( Being share application money received for 9000
shares @ Rs 10 per share)

Equity Share Application A/c	90000		9000
To Equity Share Capital A/c		90000		10
		0
( Being share application money received for 9000 shares
transferred to Share Capital A/c @ Rs 10 per share)

Equity Share Allotment A/c	225000		9000	25
To Equity Share Capital A/c		180000	9000	20
To Securities Premium Reserve A/c		45000	9000
( Being share allotment money for 9000 shares
transferred to Share Capital A/c @ Rs 20 per share
and Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	225000		9000	25
To Equity Share Allotment A/c		225000
( Being share allotment money received for 9000
shares @ Rs 25 per share )

Equity Share 1st Call A/c	360000		9000
To Equity Share Capital A/c		360000		40
		0
( Being share 1st Call money for 9000 shares transferred
to Share Capital A/c @ Rs 40 per share)

Bank A/c	320000		8000	40
To Equity Share 1st Call A/c		320000
( Being share 1st and Final Call money received for
8000 shares @ Rs 40 per share)

Share Capital A/c Dr..	70000		1000	70
To Forfeited Shares A/c		30000	1000	30
To 1st Call A/c		40000	1000	40
(Being 1000 share forfeited due to non payment
of 1st call money)

Bank A/c Dr..	60000		1000	60
Forfeited Shares A/c Dr..	10000		1000	10
To Share Capital A/c		70000	1000	70
(Being 100 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)

Amount transferred to Capital Reserve

Amount paid on 100 shares					30000
Discount given on reissue					10000
Amount transferred to Capital Reserve					20000

As the premium was already received on allotment so securities
premium reserve A/c will not be reversed

	Pansonic Ltd.
	Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	1630000
	(b) Reserves and Surplus	2	65000
	Current Liabilities
	Other Current Liabilities
	Total		1695000

II	Assets
	Tangible Assets
	Building	3	1000000
	Current Assets
	Cash and Cash Equivalents	4	695000
	Total		1695000

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	20000 Equity Shares of Rs 100 each	2000000	20000	100
		0
		2000000
	Issued Capital
	20000 Equity Shares of Rs 100 each	2000000	20000	100
		0
		2000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	10000 Equity Shares of Rs 100 each	1000000	10000	100
	(Out of the above 1000 equity shares have been issued
	pursuant to a contract for consideration other than cash)
		0
		1000000
	Subscribed but not Fully Paid Up
	9000 Equity Shares of Rs 100 each Rs 70 called Up	630000	9000	100	70
	Less - Calls in Arrears	0
		0

	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share	1630000
	Capital
2	Reserves and Surplus
	Securities Premium Reserve A/c	45000	9000	5
	Capital Reserve	20000
	Total	65000

3	Tangible Assets
	Building	1000000
4	Cash and Cash Equivalents
	Cash at Bank	695000

Cash A/c
Date	Particulars	Amount	Date	Particulars	Amount
	To Equity Share Application A/c	90000		By Balance C/d	695000
	To Equity Share Allotment A/c	225000
	To Equity Share 1st Call A/c	320000
	To Share Capital A/c (Reissue)	60000

	Total	695000		Total	695000

▶ Video Solution: Coming Soon

Question 98

In the books of Sukanya Ltd

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	1344000		96000	14
To Equity Share Application and Allotment A/c		1344000
( Being share application money received for
96000 shares @ Rs 14 per share)

Equity Share Application and Allotment A/c	1344000		96000
To Equity Share Capital A/c		384000		4
To Securities Premium Reserve A/c		960000
( Being share application money received for 96000 shares
transferred to Share Capital A/c @ Rs 4 per share and
Securities Premium Reserve A/c @ Rs 10 per share)

Equity Share 1st Call A/c	768000		96000
To Equity Share Capital A/c		288000		3
To Securities Premium Reserve A/c		480000
( Being share 1st and Final Call money for 96000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	712000		89000	8
To Equity Share 1st Call A/c		712000
( Being share 1st Call money received for 89000
shares @ Rs 8 per share)

Equity Share 2nd and Final Call A/c	768000		96000
To Equity Share Capital A/c		288000		3
To Securities Premium Reserve A/c		480000
( Being share 2nd and Final Call money for 96000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	672000		84000	8
To Equity Share 2nd and Final Call A/c		672000
( Being share 2nd and Final Call money received
for 84000 shares @ Rs 8 per share)

Share Capital A/c Dr..	70000		7000	10
Securities Premium Reserve A/c Dr..	70000		7000	10
To Forfeited Shares A/c		28000	7000	4
To Share 1st Call A/c		56000	7000	8
To 2nd and Final Call A/c		56000	7000	8
(Being 7000 shares of Rohit forfeited due to
non payment of Call money)

Share Capital A/c Dr..	50000		5000	10
Securities Premium Reserve A/c Dr..	25000		5000	5
To Forfeited Shares A/c		35000	5000	7
To 2nd and Final Call A/c		40000	5000	8
(Being 5000 shares of Namit forfeited due to
non payment of 2nd and Final Call money)

Bank A/c Dr..	64000		8000	8
Forfeited Shares A/c Dr..	16000		8000	2
To Share Capital A/c		80000	8000	10
(Being 8000 shares reissued)

Forfeited Shares A/c Dr..	19000
To Capital Reserve A/c		19000
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve

	Amount	Shares	Shares	Amt on
	Paid	Forfeited	Reissued	Reissue
Rohit shares - 7000	28000	7000	7000	28000
Namit shares - 1000	35000	5000	1000	7000
Discount given on reissue				16000
Amount transferred to Capital Reserve				19000
(28000+7000-16000)

▶ Video Solution: Coming Soon

Question 99

In the books of Abhipra Ltd

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	1260000		90000	14
To Equity Share Application A/c		1260000
( Being share application money received for
90000 shares @ Rs 14 per share)

Equity Share Application A/c	1260000		90000
To Equity Share Capital A/c		360000		4
To Securities Premium Reserve A/c		900000
( Being share application money received for 90000 shares
transferred to Share Capital A/c @ Rs 4 per share and
Securities Premium Reserve A/c @ Rs 10 per share)

Equity Share Allotmennt A/c	720000		90000
To Equity Share Capital A/c		270000		3
To Securities Premium Reserve A/c		450000
( Being share Allotment money for 90000 shares
transferred to Share Capital A/c @ Rs 3 per share and
Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	680000		85000	8
To Equity Share Allotment A/c		680000
( Being share allotment money received for 85000
shares @ Rs 8 per share)

Equity Share 1st and Final Call A/c	720000		90000
To Equity Share Capital A/c		270000		3
To Securities Premium Reserve A/c		450000
( Being share 1st and Final Call money for 90000 shares
transferred to Share Capital A/c @ Rs 3 per share and
Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	656000		82000	8
To Equity Share 1st and Final Call A/c		656000
( Being share 1st and Final Call money received
for 82000 shares @ Rs 8 per share)

Share Capital A/c Dr..	50000		5000	10
Securities Premium Reserve A/c Dr..	50000		5000	10
To Forfeited Shares A/c		20000	5000	4
To Share Allotment A/c		40000	5000	8
To 1st and Final Call A/c		40000	5000	8
(Being 5000 shares of Paresh forfeited due to non
payment of Allotment and Call money)

Share Capital A/c Dr..	30000		3000	10
Securities Premium Reserve A/c Dr..	15000		3000	5
To Forfeited Shares A/c		21000	3000	7
To 1st and Final Call A/c		24000	3000	8
(Being 3000 shares of Dharam forfeited due to
non payment of 1st and Final Call money)

Bank A/c Dr..	40000		5000	8
Forfeited Shares A/c Dr..	10000		5000	2
To Share Capital A/c		50000	5000	10
(Being 8000 shares reissued)

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

Amount transferred to Capital Reserve	Amt Paid	Shares	Shares	Amount on
		Forfeited	Reissued	Reissue
Paresh shares - 5000	20000	5000	3000	12000	(20000/5000*3000)
Dharam shares - 3000	21000	3000	2000	14000	(21000/3000*2000)
Less - Discount given on reissue				10000
Amount transferred to Capital Reserve				16000	(12000+14000-10000)

▶ Video Solution: Coming Soon

Question 100

No of shares forfeited	1000
Amount already paid per share	8	(10-2)
Amount forfeited	8000	(1000*8)
Less - Capital Reserve	5000
Discount on reissue	3000	(8000-5000)
Discount per share	3
Reissue price per share	7	(10-3)
Amount realised on reissue	7000	(10000*7)

▶ Video Solution: Coming Soon

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