T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 01 to 10

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Solution for Q 01 to 10 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 Preparation of Balance Sheet for companies

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 1

Internatinal Trade Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	4250000
	(b) Reserves and Surplus	2	500000
	Total		4750000

	Notes to Accounts		Shares	per share
1	Share Capital
	Authorised Capital
	100000 Equity Shares of Rs 100 each	10000000	100000	100
	Preference Shares of Rs each	0
		10000000
	Issued Capital
	50000 Equity Shares of Rs 100 each	5000000	50000	100
	Preference Shares of Rs each	0
		5000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	25000 Equity Shares of Rs 100 each	2500000	25000	100
	Preference Shares of Rs each	0
		2500000
	Subscribed but not Fully Paid Up
	25000 Equity Shares of Rs 100 each; Rs 70 Called Up	1750000	25000	70
	Less - Calls in Arrears	0	0	0
	Preference Shares of Rs each	0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital	4250000
2	Reserves and Surplus
	Securities Premium Reserve	500000	25000	20

Note : In the absence of information it is assumed that the amount on allotment Rs 60 includes premium of Rs 20 Per share

Note : Under issued share capital both the existing (Rs 2500000) and the newly issued share capital (Rs 2500000) will be shown

Note : Shares subscribed and fully paid up

25000 shares @ Rs (30+40) = Rs 70 per share

Amount received against capital on allotment will be Rs 60 - Rs 20 (Premium)

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Question 2

Ganges Ltd.

Balance Sheet as at ……

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	492000

	Notes to Accounts			Shares	per share
1	Share Capital
	Authorised Capital
	70000 Equity Shares of Rs 10 each		700000	70000	10
	Preference Shares of Rs each		0
			700000
	Issued Capital
	50000 Equity Shares of Rs 10 each		500000	50000	10
	Preference Shares of Rs each		0
			500000
	Subscribed Capital
	Subscribed and Fully Paid Up
	46000 Equity Shares of Rs 10 each		460000	46000	10
	Preference Shares of Rs each		0
			460000
	Subscribed but not Fully Paid Up
	4000 Equity Shares of Rs 10 each	40000		4000	10
	Less - Calls in Arrears	8000	32000	4000	2
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		492000

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Question 3

Note : Students should do this question only after completing the topic 'Forfeiture of Shares' which comes later in this chapter

SunStar Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	574000

	Notes to Accounts		Shares	per share
1	Share Capital
	Authorised Capital
	200000 Equity Shares of Rs 10 each	2000000	200000	10
	Preference Shares of Rs each	0
		2000000
	Issued Capital
	60000 Equity Shares of Rs 10 each	600000	60000	10
	Preference Shares of Rs each	0
		600000
	Subscribed Capital
	Subscribed and Fully Paid Up
	56000 Equity Shares of Rs 10 each	560000	56000	10
	Preference Shares of Rs each	0
		560000
	Subscribed but not Fully Paid Up
	0 Equity Shares of Rs each; Rs 0 Called Up	0	0	0
	Less - Calls in Arrears	0	0	0
	Preference Shares of Rs each	0
	Less - Calls in Arrears
	Add - Forefeited Shares	14000	2000	7
	Amount to be shown in the Balance Sheet against Share Capital	574000

Note : Out of 58000 shares subscribed, 56000 shares are subscribed and fully paid up

Note : 2000 shares which are forfeited will not be shown in share capital since these are cancelled.

The amount forfeited on these shares will be shown under thhe foreited shares balance

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Question 4

Jiva Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	2363000

	Notes to Accounts
1	Share Capital			Shares	per share
	Authorised Capital
	50000 Equity Shares of Rs 100 each		5000000	50000	100
	Preference Shares of Rs each		0
			5000000
	Issued Capital
	25000 Equity Shares of Rs 100 each		2500000	25000	100
	Preference Shares of Rs each		0
			2500000
	Subscribed Capital
	Subscribed and Fully Paid Up
	23150 Equity Shares of Rs 100 each		2315000	23150	100
	Preference Shares of Rs each		0
			2315000
	Subscribed but not Fully Paid Up
	600 Equity Shares of Rs 100 each	60000		600	100
	Less - Calls in Arrears	12000	48000	600	20
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		2363000

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Question 5

Bharat Hotels Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	700000

	Notes to Accounts		Shares	per share
1	Share Capital
	Authorised Capital
	50000 Equity Shares of Rs 100 each	5000000	50000	100
	Preference Shares of Rs each	0
		5000000
	Issued Capital
	10000 Equity Shares of Rs 100 each	1000000	10000	100
	Preference Shares of Rs each	0
		1000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	0 Equity Shares of Rs each	0	0
	Preference Shares of Rs each	0
		0
	Subscribed but not Fully Paid Up
	10000 Equity Shares of Rs 100 each; Rs 70 Called Up	700000	10000	70
	Less - Calls in Arrears
	Preference Shares of Rs each	0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital	700000

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Question 6

Altaur Ltd.

Balance Sheet as at …...

	Notes to Accounts			Shares	per share
1	Share Capital
	Authorised Capital
	2500000 Equity Shares of Rs 10 each		25000000	2500000	10
	150000 9% Preference Shares of Rs 100 each		15000000	150000	100
			40000000
	Issued Capital
	800000 Equity Shares of Rs 10 each		8000000	800000	10
	Preference Shares of Rs each		0
			8000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	0 Equity Shares of Rs each		0	0
	Preference Shares of Rs each		0
			0
	Subscribed but not Fully Paid Up
	800000 Equity Shares of Rs 10 each; Rs 8 Called Up	6400000		800000	8
	Less - Calls in Arrears	75000	6325000
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		6325000
2	Reserves and Surplus
	Securities Premium Reserve		1600000	800000	2

Note :
Subscribed and Fully Paid Up		Nil
Subscribed but not fully paid up

Shares of Sanju :

Amount Called Up	120000	15000	8	(excluding premium)
Less - Allotment amount not paid (Calls in Arrears)	75000	15000	5	(excluding premium)
Amount paid by Sanju	45000

Shares except shares of Sanju :

Amount Called Up	6280000	785000	8	(excluding premium)
Amount paid Up	6280000

Calls in Advance by Rocky :	50000	25000	2	(10-3-5)

Shown here only for information. It is not asked in the question
Cash at Bank :
Amount due till allotment	6400000	800000	8
Less - Calls in Arrears	75000	15000	5
Amount received	6325000
Add - Securities Premium Reserve received	1570000	785000	2
Add - Calls in Advance	50000	25000	2

Total Cash	7945000

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Question 7

Excel Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	199000

	Notes to Accounts			Shares	per share
1	Share Capital
	Authorised Capital
	50000 Equity Shares of Rs 10 each		500000	50000	10
	Preference Shares of Rs each		0
			500000
	Issued Capital
	20000 Equity Shares of Rs 10 each		200000	20000	10
	Preference Shares of Rs each		0
			200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	19500 Equity Shares of Rs 10 each		195000	19500	10
	Preference Shares of Rs each		0
			195000
	Subscribed but not Fully Paid Up
	500 Equity Shares of Rs each	5000		500	10
	Less - Calls in Arrears	1000	4000	500	2
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		199000

▶ Video Solution: Coming Soon

Question 8

Red Roses Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	1486000

	Notes to Accounts			Shares	per share
1	Share Capital
	Authorised Capital
	25000 Equity Shares of Rs 100 each		2500000	25000	100
	Preference Shares of Rs each		0
			2500000
	Issued Capital
	15000 Equity Shares of Rs 100 each		1500000	15000	100
	Preference Shares of Rs each		0
			1500000
	Subscribed Capital
	Subscribed and Fully Paid Up
	14500 Equity Shares of Rs 100 each		1450000	14500	100
	Preference Shares of Rs each		0
			1450000
	Subscribed but not Fully Paid Up
	500 Equity Shares of Rs each	50000		500	100
	Less - Calls in Arrears	14000	36000
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		1486000

Note :
Calls in Arrears
Allotment	100	40	4000
1st and Final Call	500	20	10000

Total Calls in Arrears			14000

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Question 10

	In the books of Shuchi Ltd
Date	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	2
	To Equity Share Capital A/c		40000
	( Being share application money received for 20000 shares @ Rs 2 per share transferred to Share Capital A/c)

	Equity Share Allotment A/c	100000		20000
	To Equity Share Capital A/c		60000		3
	To Securities Premium Reserve A/c		40000		2
	( Being share allotment money for 20000 shares transferred to Share Capital A/c @ Rs 3 per share and Securities Premium Reserve A/c @ Rs 2 per share)

	Bank A/c	100000		20000	5
	To Equity Share Allotment A/c		100000
	( Being share allotment money received for 20000 shares @ Rs 5 per share )

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

	Bank A/c	38000		19000	2
	Calls in Arrears A/c Dr…	2000		1000	2
	To Equity Share 1st and Final Call A/c		40000	20000	2
	( Being share 1st Call money received for 19000 shares @ Rs 2 per share )

	Bank A/c	900		300	3
	To Calls in Advance A/c		900	300	3
	( Being Calls in Advance received for 300 shares @ Rs 3 per share)

Note : Calls in arrears account has been used. Entries can be also be passed without using calls in arrears A/c

	Balance Sheet as at …...
	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	138000
	(b) Reserves and Surplus	2	40000
	Current Liabilities
	Other Current Liabilities	3	900
	Total		178900

II	Assets
	Current Assets
	Cash and Cash Equivalents	4	178900
	Total		178900

	Notes to Accounts			Shares	per share
1	Share Capital
	Authorised Capital
	50000 Equity Shares of Rs 10 each		500000	50000	10
	Preference Shares of Rs each		0
			500000
	Issued Capital
	20000 Equity Shares of Rs 10 each		200000	20000	10
	Preference Shares of Rs each		0
			200000
	Subscribed Capital
	Subscribed and Fully Paid Up
	0 Equity Shares of Rs each		0	0
	Preference Shares of Rs each		0
			0
	Subscribed but not Fully Paid Up
	20000 Equity Shares of Rs 10 each; Rs 7 Called Up	140000		20000	7
	Less - Calls in Arrears	2000	138000	1000	2
	Preference Shares of Rs each		0
	Less - Calls in Arrears
	Add - Forefeited Shares
	Amount to be shown in the Balance Sheet against Share Capital		138000
2	Reserves and Surplus
	Securities Premium Reserve		40000	20000	2
3	Other Current Liabilities
	Calls in Advance		900	300	3
4	Cash and Cash Equivalents
	Cash at Bank		178900	(138000+40000+900)

▶ Video Solution: Coming Soon

Particulars

Equity and Liabilities

Shareholders Funds

(a) Share Capital

(b) Reserves and Surplus