T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 101 to 110

Solution for Q 101 to 110 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 oversubscription and pro rata allotment, calls in arrears and forfeiture and reissue of shares for some shareholders, calculation of calls in arrears in case of pro rata allotment, calculation of capital reserve in case where 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 101

No of shares forfeited	2000
Amount already paid per share	7	(10-3)
Amount forfeited	14000	(2000*7)

No of shares reissued	1500
Amount forfeited on shares reissued	10500	(14000/2000*1500)
(1500 shares)
Less - Capital Reserve	7500
Discount on reissue	3000	(10500-7500)
Discount per share	2
Reissue price per share	8	(10-2)
Amount realised on reissue	12000	(1500*8)

▶ Video Solution: Coming Soon

Question 102

Number of application received				30000
Less - Number of application rejected				60000
Number of application on which pro
rata allotment made				24000
Number of shares alloted				20000

Note : Calculation of Calls in Arrears for Abhay

Number of shares applied	600	(24000/20000*500)
Number of shares allotted	500

Amount paid on application	3600	(600*6)
Amount used on application	3000	(500*6)
Excess amount on application	600

	Face value	Premium
Amount due on allotment	500	1000
Less - Excess Appl money adjusted	500	100
Calls in Arrears	0	900

Amount due on 1st Call	1000	(500*2)
Less - Amount paid	0
Calls in Arrears	1000

Particulars	Dr	Cr	Shares	Per Share
Share Capital A/c Dr..	4500		500	9
Securities Premium Reserve A/c Dr..	900
To Share Forfeiture A/c		3500
To Shares Allotment A/c		900
To Shares 1st Call A/c		1000

(Being 500 share forfeited due to non payment
of allotment and call money)

Bank A/c Dr..	1800		300	6
Share Forfeiture A/c Dr..	1200		300	4
To Share Capital A/c		3000	300	10
(Being 2500 shares reissued)

Share Forfeiture A/c Dr..	900
To Capital Reserve A/c		900
(Being balance in share forfeiture A/c transferred
to Capital Reserve)

Note : Amount transferred to Capital Reserve
Total Amount forfeited					3500
No of shares forfeited					500
No of shares reissued					300

Amount forfeited on reissued shares					2100
Less - Discount on reissue					1200
Amount transferred to Capital Reserve					900
(2100-1200)

▶ Video Solution: Coming Soon

Question 103

In the books of Alfa Ltd

Journal

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	400000		100000	4
To Equity Share Application and Allotment A/c		400000
( Being share application money received for
100000 shares @ Rs 4 per share)

Equity Share Application and Allotment A/c	400000		100000
To Equity Share Capital A/c		300000	75000	4
		0
To Equity Share 1st Call A/c		100000	(100000-75000)*4
( Being share application money received for 100000
shares transferred to Share Capital A/c @ Rs 4 per share)

Equity Share 1st Call A/c	225000		75000
To Equity Share Capital A/c		225000		3
		0
( Being share 1st Call money for 75000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	123750
To Equity Share 1st Call A/c		123750
( Being share 1st Call money received for 74250
shares @ Rs 3 per share)

Share Capital A/c Dr..	5250		750	7
To Forfeited Shares A/c		4000
To Share 1st Call A/c		1250
(Being 750 shares of Vibha forfeited due to non
payment of 1st Call money)

Equity Share 2nd and Final Call A/c	222750		74250
To Equity Share Capital A/c		222750		3
		0
( Being share 2nd and Final Call money for 74250 shares
transferred to Share Capital A/c @ Rs 3 per share

Bank A/c	220500		73500	3
To Equity Share 2nd and Final Call A/c		220500
( Being share 2nd and Final Call money received
for 73500 shares @ Rs 3 per share)

Share Capital A/c Dr..	7500		750	10
To Forfeited Shares A/c		5250	750	7
To 2nd and Final Call A/c		2250	750	3
(Being 750 shares of Monika forfeited due to non
payment of 2nd and Final Call money)

Bank A/c Dr..	9000		1500	6
Forfeited Shares A/c Dr..	6000		1500	4
To Share Capital A/c		15000	1500	10
(Being 8000 shares reissued)

Forfeited Shares A/c Dr..	3250
To Capital Reserve A/c		3250
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount received on 1st Call
No of shares				75000
Amount per share				3
Amount due on allotment				225000
Less - Advance				100000
Less - Arrears of Vibha				1250

Amount received on 1st Call				123750

Particulars	Vibha	Monika
Shares Applied	1000	1000
Shares Allotted	750	750
Amount paid on Application	4000
Amount used on Application	3000
Excess Money	1000

Amount due on 1st Call	2250
Amount adjusted from advance	1000
Amount paid	0
Arrears on 1st Call	1250

Done till 103

▶ Video Solution: Coming Soon

Question 104

In the books of Himalya Company Ltd

Journal

Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr..	480000		160000	3
To Equity Share Application A/c		480000
( Being share application money received for
160000 shares @ Rs 3 per share)

Equity Share Application A/c	480000
To Equity Share Capital A/c		360000	120000	3
		0
To Equity Share Allotment A/c		120000	40000	3
( Being share application money received for 120000
shares transferred to Share Capital A/c @ Rs 3 per share)

Equity Share Allotment A/c	600000		120000
To Equity Share Capital A/c		360000		3
To Securities Premium Reserve A/c		240000
( Being share allotment money for 120000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	480000		120000	5
To Equity Share Allotment A/c		480000
( Being share Allotment money received for 120000
shares @ Rs 5 per share after adjusting advance
money received at the time of application)

Equity Share 1st Call A/c	240000		120000
To Equity Share Capital A/c		240000		2
		0
( Being share 1st and Final Call money for 120000
shares transferred to Share Capital A/c @ Rs 2
per share)

Bank A/c	230400		115200	2
To Equity Share 1st Call A/c		230400
( Being share 1st Call money received for 115200
shares @ Rs 2 per share)

Equity Share 2nd and Final Call A/c	240000		120000
To Equity Share Capital A/c		240000		2
		0
( Being share 2nd and Final Call money for 120000
shares transferred to Share Capital A/c @ Rs 2
per share)

Bank A/c	230400		115200	2
To Equity Share 2nd and Final Call A/c		230400
( Being share 2nd and Final Call money received for
115200 shares @ Rs 2 per share)

Share Capital A/c Dr..	48000		4800	10
To Forfeited Shares A/c		28800	4800	6
To Share 1st Call A/c		9600	4800	2
To 2nd and Final Call A/c		9600	4800	2
(Being 4800 shares forfeited due to non payment
of Call money)

Bank A/c Dr..	33600		4800	7
Forfeited Shares A/c Dr..	14400		4800	3
To Share Capital A/c		48000	4800	10
(Being 4800 shares reissued)

Forfeited Shares A/c Dr..	14400
To Capital Reserve A/c		14400
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve
Amount forfeited					28800
Discount given on reissue					14400
Amount transferred to Capital Reserve					14400

Cash A/c
Particulars	Amount	Particulars	Amount
To Equity Share Application A/c	480000	By Balance C/d	1454400
To Equity Share Allotment A/c	480000
To Equity Share 1st Call A/c	230400
To Equity Share 2nd and Final Call A/c	230400
To Share Capital A/c	33600




Total	1454400	Total	1454400

Himalaya Company Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	1200000
	(b) Reserves and Surplus	2	254400
	Current Liabilities
	Other Current Liabilities
	Total		1454400

II	Assets
	Tangible Assets
	Building	3	0
	Current Assets
	Cash and Cash Equivalents	4	1454400
	Total		1454400

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	Equity Shares of Rs each	0
		0
		0
	Issued Capital
	120000 Equity Shares of Rs 10 each	1200000	120000	10
		0
		1200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	120000 Equity Shares of Rs 10 each	1200000	120000	10

		0
		1200000
	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	1200000
	Capital
2	Reserves and Surplus
	Securities Premium Reserve A/c	240000	120000	2
	Capital Reserve	14400
	Total	254400

3	Tangible Assets
	Building
4	Cash and Cash Equivalents
	Cash at Bank	1454400

▶ Video Solution: Coming Soon

Question 105

In the books of Visa Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	39000		13000	3
To Equity Share Application A/c		39000
( Being share application money received for 13000
shares @ Rs 3 per share)

Equity Share Application A/c	39000
To Equity Share Capital A/c		30000	10000	3
To Equity Share Allotment A/c		6000	2000	3
To Bank A/c		3000	1000	3
( Being share application money received for 10000
shares transferred to Share Capital A/c @ Rs 3 per share)

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	13720		9800	2
To Equity Share Allotment A/c		13720
( Being share Allotment money received for 9800
shares @ Rs 2 per share after adjusting advance
money received at the time of application)

Share Capital A/c Dr..	1000		200	5
To Forfeited Shares A/c		720	200	6
To Share Allotment A/c		280	200	2

(Being 200 shares forfeited due to non payment
of allotment money)

Equity Share 1st Call A/c	29400		9800
To Equity Share Capital A/c		29400		3
		0
( Being share 1st and Final Call money for 9800 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c Dr..	29400		9800
To Equity Share1st Call A/c		29400		3
		0
(Being share 1st call money received)

Bank A/c Dr..	1800		200	9
			200	0
To Share Capital A/c		1600	200	8
To Security Premium Reserve A/c		200	200	1
(Being 4800 shares reissued)

Forfeited Shares A/c Dr..	720
To Capital Reserve A/c		720
(Being balance in Forfeited Shares A/c transferred to Capital Reserve)

Mohan
Share Applied					240
Shares Allotted					200

Amount paid on Application					720
Amount used on appplicaiton					600
Excess transferred to Allotment					120

Amount due on allotment					400
Excess adjusted					120
Calls in Arrears					280

Amount received on allotment
Amount due on allotment					20000
Less - Calls in Advance on appplication					6000
Less - Calls in Arrears					280
Amount received					13720

Amount transferred to Capital Reserve
Amount forfeited					720
Discount given on reissue					0
Amount transferred to Capital Reserve					720

The question is silent on whether the amount due on 1st call is received or not
In the absence of information it is assumed that the amount on 1st call is not yet received
Hence the cash book balance in this solution will not match with answer given in book

▶ Video Solution: Coming Soon

Question 106

In the books of Saregama Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	3600000		120000	30
To Equity Share Application A/c		3600000
( Being share application money received for
120000 shares @ Rs 30 per share)

Equity Share Application A/c	3600000
To Equity Share Capital A/c		2400000	80000	30
		0
To Calls in Advance A/c		1200000	40000	30
( Being share application money received for 80000
shares transferred to Share Capital A/c @ Rs 30 per share)

Equity Share Allotment A/c	2400000		80000
To Equity Share Capital A/c		1600000		20
To Securities Premium Reserve A/c		800000
( Being share allotment money for 80000 shares
transferred to Share Capital A/c @ Rs 20 per share
and Securities Premium Reserve A/c @ Rs 10 per share)

Bank A/c	1176000		80000	30
Calls in Advance A/c	24000
Calls in Arrears A/c		1200000
To Equity Share Allotment A/c
( Being share Allotment money received for 80000
shares @ Rs 30 per share after adjusting advance
money received at the time of application)

Equity Share 1st Call A/c	2400000		80000
To Equity Share Capital A/c		2400000		30

( Being share 1st and Final Call money for 80000
shares transferred to Share Capital A/c @ Rs 30
per share)

Bank A/c Dr..	2232000		74400	30
Calls in Arrears A/c Dr..	168000		5600	30
To Equity Share 1st Call A/c		2400000
#REF!

Share Capital A/c Dr..	128000		1600	80
Securities Premium Reserve A/c Dr..	16000		1600	10
To Forfeited Shares A/c		72000	1600
To Calls in Arrears		72000	1600	2

(Being 1600 shares of Dhwani forfeited)

Share Capital A/c Dr..	320000		4000	80
Securities Premium Reserve A/c Dr..	0
To Forfeited Shares A/c		200000	4000	50
To Calls in Arrears		120000	4000	30

(Being 4000 shares of Sargam forfeited)

Bank A/c Dr..	190000		2000	95

To Share Capital A/c		160000	2000	80
To Securities Premium Reserve A/c		30000	2000	15
(Being 2000 shares reissued)

Forfeited Shares A/c Dr..	92000
To Capital Reserve A/c		92000
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Amount transferred to Capital Reserve	Amt Paid	Shr forfeited	Shr Reissued	Amt on reissued sahres
Amount paid on Shares of Dhwani	72000	1600	1600	72000
Amount paid on Shares of Sargam	200000	4000	400	20000
Discount given on reissue	0			0
Amount transferred to Capital Reserve				92000

Amount received on Allotment
Total Amount due on allotment				2400000
Less - Received in advance				1200000
Balance				1200000
Less - Calls in arrears				24000
Amount Received				1176000

Amount received on 1st Call
Total Amount due on 1st Call				2400000
Less - Arrears of Dhwani				48000
Less - Arrears of Sargam				120000
Amount Received				2232000

Calculation of Calls in Arrears for Dhwani
Description	Dhvani
Shares Applied	2400
Shares alloted	1600
Application Money	72000
	Capital	Premium
Due on Application	48000	0
Paid/Adjusted	48000	0
Excess	24000	0

Due on Allotment	32000	16000
Paid/Adjusted	24000	0
Arrears on Allotment	8000	16000

Due on 1st Call	48000
Paid on 1st Call	0
Arrears 1st Call	48000
Dhvani - Full premium is not paid
Sargam - Premium is fully paid

Note : Calculation of shares allotted to Sargam
Sargam
No of shares applied				6000
No of shares allotted (80000/120000*6000)				4000

▶ Video Solution: Coming Soon

Question 107

In the books of XYZ Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	18000		1800	10
To Equity Share Application A/c		18000
( Being share application money received for 1800
shares @ Rs 10 per share)

Equity Share Application A/c	18000
To Equity Share Capital A/c		10000	1000	10
To Bank A/c		3000	300	10
To Equity Share Allotment A/c		5000	500	10
( Being share application money received for 1000
shares transferred to Share Capital A/c @ Rs 10
per share)

Equity Share Allotment A/c	25000		1000
To Equity Share Capital A/c		20000		20
To Securities Premium Reserve A/c		5000
( Being share allotment money for 1000 shares
transferred to Share Capital A/c @ Rs 20 per share
and Securities Premium Reserve A/c @ Rs 5 per share)

Bank A/c	18000		900	25
To Equity Share Allotment A/c		18000
( Being share Allotment money received for 900
shares @ Rs 25 per share after adjusting advance
money received at the time of application)

Equity Share 1st Call A/c	40000		1000
To Equity Share Capital A/c		40000		40

( Being share 1st and Final Call money for 1000
shares transferred to Share Capital A/c @ Rs 40
per share)

Bank A/c Dr..	36000		900	40
To Equity Share 1st Call A/c		36000
( Being share 1st Call money received for 900
shares @ Rs 40 per share)

Share Capital A/c Dr..	7000		100	70
Securities Premium Reserve A/c Dr..	500		100	5
To Forfeited Shares A/c		1500
To Equity Share Allotment A/c		2000
To Equity Share 1st Call A/c		4000
(Being 100 shares forfeited)

Bank A/c Dr..	6000		100	60
Forfeited Shares A/c Dr…	1000		100	10
To Share Capital A/c		7000	100	70
		0
(Being 100 shares reissued)

Forfeited Shares A/c Dr..	500
To Capital Reserve A/c		500
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note : Calculation of Calls in Arrears for Sundar

Description	Sundar
Shares Applied	150	(1500/1000*100)
Shares alloted	100
Application Money	1500
	Capital	Premium
Due on Application	1000	0
Paid/Adjusted	1000	0
Excess	500	0

Due on Allotment	2000	500
Paid/Adjusted	500	0
Arrears on Allotment	1500	500

Due on 1st Call	4000
Paid on 1st Call	0
Arrears 1st Call	4000

Note : Calculation of amount received on Allotment

Total Amount due on allotment	25000	(1000*25)
Less - Received in advance on application	5000
Balance	20000
Less - Calls in arrears	2000	(for Sundar)
Amount Received	18000

▶ Video Solution: Coming Soon

Question 108

In the books of Janta Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	4500000		750000	6
To Equity Share Application A/c		4500000
( Being share application money received for
750000 shares @ Rs 6 per share)

Equity Share Application A/c	4500000
To Equity Share Capital A/c		2000000	500000	4
To Equity Share Allotment A/c		1500000	250000	6
To Securities Premium Reserve A/c		1000000		2
( Being share application money received for 500000
shares transferred to Share Capital A/c @ Rs 4 per share)

Equity Share Allotment A/c	3000000		500000
To Equity Share Capital A/c		2000000		4
To Securities Premium Reserve A/c		1000000		2
( Being share allotment money for 500000 shares
transferred to Share Capital A/c @ Rs 4 per share and
Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	1497000
To Equity Share Allotment A/c		1497000

(Being amount received on share allotment)

Equity Share 1st Call A/c	1000000		500000
To Equity Share Capital A/c		1000000		2

( Being share 1st Call money for 500000 shares
transferred to Share Capital A/c @ Rs 2 per share)

Bank A/c Dr..	997000
To Equity Share 1st Call A/c		997000
(Being amount received on share 1st and Final call)

Share Capital A/c Dr..	10000		1000	10
Securities Premium Reserve A/c Dr..	2000
To Forfeited Shares A/c		7000	1000	8
To Equity share Allotment A/c		3000
To Equity share 1st Call A/c		2000
(Being 1500 shares of Mohan forfeited)

Share Capital A/c Dr..	5000		500	10
To Forfeited Shares A/c		4000	500	8
To Equity share 1st Call A/c		1000	500	2
(Being 500 shares of Vikram forfeited)

Bank A/c Dr..	12000		1500	8
Forfeited Shares A/c Dr…	3000		1500	2
To Share Capital A/c		15000	1500	10
(Being 1500 shares reissued)

Forfeited Shares A/c Dr..	8000
To Capital Reserve A/c		8000
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note : Amount transferred to Capital Reserve

All the shares forfeited are reissued so the amount transferred to capital reserve can be directly calculated

Note : Calculation of Calls in Arrrears of Mohan and Vikram

Description	Mohan		Vikram
Shares Applied	1500		750
Shares alloted	1000		500
Application Money	9000
	Capital	Premium
Due on Application	4000	2000
Paid/Adjusted	4000	2000
Excess for allotment	3000

Due on Allotment	4000	2000
Paid/Adjusted	3000
Arrears on Allotment	1000	2000

Paid on Allotment

Due on 1st Call	2000
Paid/Adjusted	0
Arrears on 1st Call	2000

Note : Amount received on Application
Total Amount received on application				4500000
Amount adjusted towards application				3000000
Excess Carried forward				1500000

Note : Amount received on Allotment
Total Amount due on allotment				3000000
Less - Received in advance				1500000
Less - Calls in arrears for Mohan				3000
Amount Received				1497000

Note : Amount received on 1st Call
Total Amount due on 1st Call				1000000
Less - Received in advance				0
Less - Calls in Arrears of Mohan				2000
Less - Calls in Arrears of Vikram				1000
Amount received on 1st Call				997000

▶ Video Solution: Coming Soon

Question 109

In the books of Alok Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1200000		150000	8
To Equity Share Application and Allotment A/c		1200000
( Being share application money received for 150000
shares @ Rs 8 per share)

Equity Share Application and Allotment A/c	1200000
To Equity Share Capital A/c		500000	100000	5
To Equity Share Allotment A/c		320000	50000	8
To Securities Premium Reserve A/c		300000		3
To Bank A/c		80000	10000	8
( Being share application money received for 100000
shares transferred to Share Capital A/c @ Rs 5 per share)


Equity Share 1st and Final Call A/c	700000		100000
To Equity Share Capital A/c		500000		5
To Securities Premium Reserve A/c		200000		2
( Being share allotment money for 100000 shares
transferred to Share Capital A/c @ Rs 5 per share
and Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	378100
To Equity Share 1st and Final Call A/c		378100

(Being amount received on share 1st and Final Call)

Share Capital A/c Dr..	3000		300	10
Securities Premium Reserve A/c Dr..	600		300
To Forfeited Shares A/c		2300	300	8
To Equity share 1st and Final A/c		1300

(Being 300 shares of Mohan forfeited)

Share Capital A/c Dr..	2000		200	10
Securities Premium Reserve A/c Dr..	400		200
To Forfeited Shares A/c		1800
To Equity share 1st and Final Call A/c		600
(Being 200 shares of Sohan forfeited)

Bank A/c Dr..	6000		500	12
Forfeited Shares A/c Dr…	0
To Share Capital A/c		5000	500	10
To Securities Premium Reserve A/c		1000	500	2
(Being 500 shares reissued)

Forfeited Shares A/c Dr..	4100
To Capital Reserve A/c		4100
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note :	FV	Premium	Total
Application and Allotment	5	3	8
First and Final Call	5	2	7
Total	10	5	15

Note : Pro rata Table	Cat 1	Cat 2	Cat 3	Total
Applied	80000	60000	10000	150000
Allotted	60000	40000	0	100000

Amount paid on application	640000	480000	80000
Amount used on application	480000	320000	0
Excess Money	160000	160000

Amount due on 1st and Final Call	420000	280000

Note : Calls in Arrears Calculation

	Mohan		Sohan
	FV	Premium	FV	Premium
Applied	400		300
Allotted	300		200

Amount paid on application	3200		2400
Amount due on application	1500	900	1000	600
Amount paid	1500	900	1000	600

Excess money	800		800

Amount due on 1st Call	1500	600	1000	400
Amount paid	800		800
Calls in Arrears	700	600	200	400

Note : Amount received on 1st Call
Amount due on 1st Call				700000
Less - Calls in Advance on application				320000
Less - Calls in Arrears				1900
Amount received on 1st Call				378100

Note : Amount transferred to Capital Reserve
All the shares forfeited are reissued so the amount
transferred to capital reserve can be directly calculated

Cash A/c
Particulars	Amount	Particulars	Amount
To Equity share application and allotment A/c	1200000	By Equity share App and Allt	80000
To Equity share 1st and Final Call	378100
To Equity Share Capital A/c	6000	By Balance C/d	1504100

Total	1584100	Total	1584100

▶ Video Solution: Coming Soon

Question 110

In the books of Ruchi Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	120000		60000	2
To Equity Share Application A/c		120000
( Being share application money received for 60000
shares @ Rs 2 per share)

Equity Share Application A/c	120000
To Equity Share Capital A/c		80000	40000	2
To Equity Share Allotment A/c		16000	8000	2
To Bank A/c		24000	12000	2
( Being share application money received for 40000
shares transferred to Share Capital A/c @ Rs 2 per share)

Equity Share Allotment A/c	200000		40000
To Equity Share Capital A/c		120000		3
To Securities Premium Reserve A/c		80000		2
( Being share allotment money for 40000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	176640
To Equity Share Allotment A/c		176640

(Being amount received on share allotment)

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

Bank A/c Dr..	72800

To Equity Share 1st Call A/c		72800
(Being amount received on share 1st and Final call)

Equity Share 2nd and Final Call A/c	120000		40000
To Equity Share Capital A/c		120000		3
		0
( Being share 2nd Call money for 40000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c Dr..	109200

To Equity Share 2nd Call A/c		109200
(Being amount received on share 2nd and Final call)

Share Capital A/c Dr..	16000		1600	10
Securities premium Reserve A/c Dr..	3200
To Forfeited Shares A/c		3840
To Equity share Allotment A/c		7360
To Equity share 1st Call A/c		3200
To Equity share 2nd and Final A/c		4800
(Being 1600 shares of Ram forfeited)

Share Capital A/c Dr..	20000		2000	10
To Forfeited Shares A/c		10000	2000	5
To Equity share 1st Call A/c		4000	2000	2
To Equity share 2nd and Final A/c		6000	2000	3
(Being 2000 shares of Shyam forfeited)

Bank A/c Dr..	28800		3600	8
Forfeited Shares A/c Dr…	7200		3600	2
To Share Capital A/c		36000	3600	10
(Being 3600 shares reissued)

Forfeited Shares A/c Dr..	6640
To Capital Reserve A/c		6640
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note : Amount transferred to Capital Reserve
All the shares forfeited are reissued so the amount
transferred to capital reserve can be directly calculated

Note : Calculation of Calls in Arrears for Ram and Shyam

Description	Ram		Shyam
Shares Applied	1920		2400
Shares alloted	1600		2000
Application Money	3840
	Capital	Premium
Due on Application	3200
Paid/Adjusted	3200
Excess	640

Due on Allotment	4800	3200
Paid/Adjusted	640
Arrears on Allotment	4160	3200

Due on 1st Call	3200
Paid/Adjusted
Calls in Arrears	3200


Due on 2nd Call	4800
Paid/Adjusted
Calls in Arrears	4800

Note : Amount received on Allotment
Total Amount due on allotment				200000
Less - Received in advance				16000
Less - Calls in arrears of Ram				7360

Amount received on Allotment				176640

Note : Amount received on 1st Call
Total Amount due on 1st Call				80000
Less - Received in advance				0
Less - Calls in Arrears of Ram				3200
Less - Calls in Arrears of Shyam				4000
Amount received on 1st Call				72800

Note : Amount received on 2nd Call
Total Amount due on 2nd Call				120000
Less - Received in advance				0
Less - Calls in Arrears of Ram				4800
Less - Calls in Arrears of Shyam				6000
Amount received on 2nd Call				109200

▶ 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 111-115

T S Grewal Solutions – Issue of Shares – All Questions

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

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