T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 111 to 115

Solution for Q 111 to 115 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 multiple categories of pro rata allotment, calculation of shares applied and shares allotted in case of multiple categories of pro rata allotment, calculation of calls in arrears and forfeiture and reissue of shares for shareholders under different categories of pro rata allottment, 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 111

In the books of Nitro Paints Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1080000		180000	6
To Equity Share Application A/c		1080000
( Being share application money received for
180000 shares @ Rs 6 per share)

Equity Share Application A/c	1080000
To Equity Share Capital A/c		800000	160000	5
To Securities Premium Reserve A/c		160000	160000	1
To Equity Share Allotment A/c		60000	10000	6
To Bank A/c		60000	10000	6
( Being share application money received for 160000
shares transferred to Share Capital A/c @ Rs 5 per
share and Securities Premium Reserve A/c @ Rs 1 per share)

Equity Share Allotment A/c	480000		160000
To Equity Share Capital A/c		320000		2
To Securities Premium Reserve A/c		160000		1
( Being share allotment money for 160000 shares
transferred to Share Capital A/c @ Rs 2 per share
and Securities Premium Reserve A/c @ Rs 1 per share)

Bank A/c	411600
To Equity Share Allotment A/c		411600

(Being amount received on share allotment)

Equity Share 1st Call A/c	640000		160000
To Equity Share Capital A/c		480000		3
To Securities Premium Reserve A/c		160000		1
( Being share 1st Call money for 160000 shares
transferred to Share Capital A/c @ Rs 3 per share
and Securities Premium Reserve A/c @ Rs 1 per share)

Bank A/c Dr..	627200

To Equity Share 1st Call A/c		627200
(Being amount received on share 1st and Final call)

Share Capital A/c Dr..	32000		3200	10
Securities Premium Reserve A/c Dr..	6400
To Forfeited Shares A/c		17200	3200	8
To Equity share Allotment A/c		8400
To Equity share 1st and Final Call A/c		12800
(Being 3200 shares forfeited)

Bank A/c Dr..	43000		1600	26.9
Forfeited Shares A/c Dr…	0		1600	0
To Share Capital A/c		16000	1600	10
To Securities Premium Reserve A/c		27000	1600	16.9
(Being 1600 shares reissued)

Forfeited Shares A/c Dr..	8600
To Capital Reserve A/c		8600
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note : Calculation of Calls in Arrears for Aditya

Description				3400
Shares Applied				3200
Shares alloted				20400

Application Money	Capital	Premium
Due on Application	16000	3200
Paid/Adjusted	16000	3200
Excess on application	1200

Due on Allotment	6400	3200
Paid/Adjusted	1200
Arrears on Allotment	5200	3200

Due on 1st and Final Call	9600	3200
Paid/Adjusted	0
Calls in Arrears	9600	3200

Note : Calculation of amount received on Allotment
Total Amount due on allotment				480000
Less - Received in advance				60000
Less - Calls in arrears of Aditya				8400
Amount Received on allotment				411600

Note : Calculation of amount received on 1st Call
Total Amount due on 1st Call				640000
Less - Received in advance				0
Less - Calls in Arrears				12800

Amount received on 1st Call				627200

▶ Video Solution: Coming Soon

Question 112

In the books of XYZ Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	225000		75000	3
To Equity Share Application A/c		225000
( Being share application money received for
75000 shares @ Rs 3 per share)

Equity Share Application A/c	225000		alloted
To Equity Share Capital A/c		150000	50000	3
To Equity Share Allotment A/c		75000	25000	3
( Being share application money received for 50000
shares transferred to Share Capital A/c @ Rs 3 per share

Equity Share Allotment A/c	200000		50000
To Equity Share Capital A/c		200000		4
( Being share allotment money for 50000 shares
transferred to Share Capital A/c @ Rs 4 per share

Bank A/c	121400
To Equity Share Allotment A/c		121400

(Being amount received on share allotment)

Share Capital A/c Dr..	8400		1200	7
To Forfeited Shares A/c		4800
To Equity share Allotment A/c/ Calls in Arrears		3600

(Being 1200 shares forfeited)

Equity Share 1st Call A/c	146400		48800
To Equity Share Capital A/c		146400		3

( Being share 1st Call money for 48800 shares
transferred to Share Capital A/c @ Rs 3 per share

Bank A/c Dr..	145200

To Equity Share 1st Call A/c		145200
(Being amount received on share 1st and Final call)

Share Capital A/c Dr..	4000		400	10
To Forfeited Shares A/c		2800	400	7
To Equity share 1st Call A/c		1200	400	3

(Being 400 shares forfeited)

Bank A/c Dr..	8000		1000	8
Forfeited Shares A/c Dr…	2000		1000	2
To Share Capital A/c		10000	1000	10
(Being 1000 shares reissued)

Forfeited Shares A/c Dr..	3200
To Capital Reserve A/c		3200
(Being balance in Forfeited Shares A/c transferred to Capital Reserve)

Note : Amount transferred to Capital Reserve

Description	Ramu	Shamu	Total
No of shares forfeited	1200	400	1600
Amount paid on forfeited shares	4800	2800	7600	(see from forfeiture entry)
Amount paid per share	4	7
	(4800/1200)	(2800/400)
No of shares reissued	600	400	1000	(question)
Amount paid on shares reissued	2400	2800	5200
	(600*4)	(400*7)
Less - Discount on reissue			2000	(reissue)

Amount transferred to Capital Reserve			3200	(5200-2000)

Note : Pro Rata
Category	Category 1	Category 2	Total
Applied	40000	35000	75000
Allotted	30000	20000	50000
Rejected	10000	15000	25000

Note : Calculation of Calls in Arrears for Ramu

Description	Ramu	Shamu
Shares Applied	1600	700
Shares alloted	1200	400
Application Money	4800
	Capital
Due on Application	3600
Paid/Adjusted	3600
Excess	1200

Due on Allotment	4800
Paid/Adjusted	1200	0
Arrears on Allotment	3600	0

Note : Amount received on Allotment
Total Amount due on allotment				200000
Less - Received in advance				75000
Less - Calls in arrears				3600

Amount Received				121400

Note : Amount received on 1st Call
Total Amount due on 1st Call				146400
Less - Received in advance				0
Less - Calls in Arrears for Shamu				1200

Amount received on 1st Call				145200

▶ Video Solution: Coming Soon

Question 113

In the books of Konark Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1200000		400000	3
To Equity Share Application A/c		1200000
( Being share application money received for
400000 shares @ Rs 3 per share)

Equity Share Application A/c	1200000
To Equity Share Capital A/c		900000	300000	3
To Equity Share Allotment A/c		300000	100000	3

( Being share application money received for 300000
shares transferred to Share Capital A/c @ Rs 3 per share)

Equity Share Allotment A/c	900000		300000
To Equity Share Capital A/c		900000		3
		0
( Being share allotment money for 300000 shares
transferred to Share Capital A/c @ Rs 3 per share)

Bank A/c	634000
To Equity Share Allotment A/c		594000
To Calls in Advance A/c		40000
(Being amount received on share allotment)

Equity Share 1st Call A/c	1200000		300000
To Equity Share Capital A/c		1200000		4
		0
( Being share 1st Call money for 300000 shares
transferred to Share Capital A/c @ Rs 4 per share)

Bank A/c Dr..	1144000
Calls in Advance A/c Dr..	40000
To Equity Share 1st Call A/c		1184000
(Being amount received on share 1st call)

Share Capital A/c Dr..	40000		4000	10

To Forfeited Shares A/c		18000
To Equity share Allotment A/c		6000
To Equity share 1st Call A/c		16000
(Being 4000 shares forfeited)

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

Forfeited Shares A/c Dr..	9000
To Capital Reserve A/c		9000
(Being balance in Forfeited Shares A/c
transferred to Capital Reserve)

	Cat1	Cat2	Cat3	Total
Applied	240000	120000	40000	400000
Allotted	200000	80000	20000	300000
Rejected	40000	40000	20000	100000

Note : Calculation of Calls in Arrears for Divij

Description			Divij
Shares Applied			6000
Shares alloted			4000
Application Money			18000
			Capital
Due on Application			12000
Paid/Adjusted			12000
Excess			6000

Due on Allotment			12000
Paid/Adjusted			6000
Arrears on Allotment			6000

Due on 1st Call			16000
Paid/Adjusted			0
Calls in Arrears			16000

Note : Amount received on Allotment
Total Amount due on allotment				900000
Less - Received in advance				300000
Less - Calls in arrears for Divij				6000
Add - Calls in Advance of Faisal				40000
Amount Received				634000

Note : Amount received on 1st Call
Total Amount due on 1st Call				1200000
Less - Received in advance				40000
Less - Calls in arrears for Divij				16000
Amount received on 1st Call				1144000

▶ Video Solution: Coming Soon

Question 114

In the books of Max Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	1200000		240000	5
To Equity Share Application A/c		1200000
( Being share application money received for
240000 shares @ Rs 5 per share)

Equity Share Application A/c	1200000
To Equity Share Capital A/c		1000000	200000	5
To Equity Share Allotment A/c		200000	40000	5

( Being share application money received for 200000
shares transferred to Share Capital A/c @ Rs 5 per share)


Equity Share Allotment A/c	800000		200000
To Equity Share Capital A/c		400000		2
To Securities Premium Reserve A/c		400000		2
( Being share allotment money for 200000 shares
transferred to Share Capital A/c @ Rs 2 per share
and Securities Premium Reserve A/c @ Rs 2 per share)

Bank A/c	593900
To Equity Share Allotment A/c		593900	0
(Being amount received on share allotment)

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

Bank A/c Dr..	393800
To Equity Share 1st Call A/c		393800
(Being amount received on share 1st call)

Share Capital A/c Dr..	9000		1000	9
Security Premium Reserve A/c Dr..	2000		1000	2
To Forfeited Shares A/c		5000	1000	5
To Equity share Allotment A/c		4000	1000	4
To Equity share 1st Call A/c		2000	1000	2
(Being 1000 shares forfeited)

Share Capital A/c Dr..	8100		900	9
Securities Premium Reserve A/c Dr..	1800
To Forfeited Shares A/c		6000
To Equity share Allotment A/c		2100
To Equity share 1st Call A/c		1800
(Being 900 shares forfeited)

Equity Share 2nd and Final Call A/c	198100		198100
To Equity Share Capital A/c		198100		1

(Being share 2nd call due)

Bank A/c Dr..	196900
To Equity Share 2nd and Final Call A/c		196900
(Being amount received on share 2nd and Final call)

Share Capital A/c Dr..	12000		1200	10
To Forfeited Shares A/c		8400	1200	7
To Equity share 1st Call A/c		2400	1200	2
To Equity share 2nd and Final Call A/c		1200	1200	1
(Being 1200 shares forfeited)

Bank A/c Dr..	10400		1300	8
Forfeited Shares A/c Dr…	2600		1300	2
To Share Capital A/c		13000	1300	10
(Being 1300 shares reissued)

Forfeited Shares A/c Dr..	4400
To Capital Reserve A/c		4400
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note :

Amount transferred to Capital Reserve

Category	Category 1	Category 2	Total
No of shares forfeited	1000	900	1900
Amount paid on forfeited shares	5000	6000	11000
	5	20/3
No of shares reissued	1000	300	1300
Amount paid on shares reissued	5000	2000	7000

Less - Discount on reissue			2600

Amount transferred to Capital Reserve			4400

Note :

Description

Shares Applied				1200
Shares alloted				900
Application Money				6000

	FV	Premium
Application money due	4500
Paid/Adjusted	4500
Excess	1500

Due on Allotment	1800	1800
Paid/Adjusted	1500	0
Arrears on Allotment	300	1800
Excess on Allotment	0	0
Paid on Allotment

Due on 1st Call	1800
Paid/Adjusted	0
Arrears 1st Call	1800

Note : Amount received on Allotment
Total Amount due on allotment				800000
Less - Received in advance				200000
Less - Calls in arrears
Category (i)				4000
Category (ii)				2100

Amount Received on allotment				593900

Note : Amount received on 1st Call
Total Amount due on 1st Call				400000
Less - Received in advance				0
Less - Calls in Arrears
Category (i)				2000
Category (ii)				1800
Category (iii)				2400

Amount received on 1st Call				393800

Amount received on 2nd Call
Total Amount due on 2nd Call				198100
Less - Received in advance				0
Less - Calls in arrears
Category (iii)				1200
Amount received on 2nd Call				196900

Max Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	1994400
	(b) Reserves and Surplus	2	400600
	Current Liabilities
	Other Current Liabilities
	Total		2395000

II	Assets
	Tangible Assets
	Building	3	0
	Current Assets
	Cash and Cash Equivalents	4	2395000
	Total		2395000

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	Equity Shares of Rs each	0
		0
		0
	Issued Capital
	200000 Equity Shares of Rs 10 each	2000000	200000	10
		0
		2000000
	Subscribed Capital
	Subscribed and Fully Paid Up
	198200 Equity Shares of Rs 10 each	1982000	198200	10

		0
		1982000
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each Rs called Up	0
	Less - Calls in Arrears	0
		0

	Add - Forefeited Shares	12400
	Amount to be shown in the Balance Sheet against Share	1994400
	Capital
2	Reserves and Surplus
	Securities Premium Reserve A/c	396200	198100	2
	Capital Reserve	4400
	Total	400600

3	Tangible Assets
	Building
4	Cash and Cash Equivalents
	Cash at Bank	2395000

Cash A/c
Date	Particulars	Amount	Date	Particulars	Amount
	To Equity Share Application A/c	1200000		By Balance C/d	2395000
	To Equity Share Allotment A/c	593900
	To Equity Share 1st Call A/c	393800
	To Equity Share 2nd and Final Call A/c	196900
	To Equity Share Capital	10400

	Total	2395000		Total	2395000

▶ Video Solution: Coming Soon

Question 115

In the books of XYZ Ltd

Journal

Particulars	Dr	Cr	Shares	Per share
Bank A/c Dr..	18000		3000	6
To Equity Share Application A/c		18000
( Being share application money received for
3000 shares @ Rs 6 per share)

Equity Share Application A/c	18000
To Equity Share Capital A/c		10000	2000	5
To Securities Premium Reserve A/c		2000	2000	1
To Equity Share Allotment A/c		2400	400	6
To Bank A/c		3600	600	6
( Being share application money received for 2000
shares transferred to Share Capital A/c @ Rs 5 per share)

Equity Share Allotment A/c	4000		2000
To Equity Share Capital A/c		2000		1
To Securities Premium Reserve A/c		2000		1
( Being share allotment money for 2000 shares
transferred to Share Capital A/c @ Rs 1 per share
and Securities Premium Reserve A/c @ Rs 1 per share)

Bank A/c	1568
To Equity Share Allotment A/c		1568
(Being amount received on share allotment)

Equity Share 1st Call A/c	6000		2000
To Equity Share Capital A/c		4000		2
To Securities Premium Reserve A/c		2000		1
( Being share 1st Call money for 2000 shares
transferred to Share Capital A/c @ Rs 2 per share
and Securities Premium Reserve A/c @ Rs 1 per share)

Bank A/c Dr..	5700
To Equity Share 1st Call A/c		5700
(Being amount received on share 1st call)

Share Capital A/c Dr..	320		40	8
Securities Premium Reserve A/c Dr..	72
To Forfeited Shares A/c		240
To Equity share Allotment A/c		32
To Equity share 1st Call A/c		120
(Being 40 shares forfeited)

Equity Share 2nd and Final Call A/c	5880		1960
To Equity Share Capital A/c		3920		2
To Securities Premium Reserve A/c		1960		1
( Being share 2nd and Final Call money for 1960 shares
transferred to Share Capital A/c @ Rs 2 per share
and Securities Premium Reserve A/c @ Rs 1 per share)

Bank A/c Dr..	5700
To Equity Share 2nd and Final Call A/c		5700
(Being amount received on share 2nd and Final call)

Share Capital A/c Dr..	600		60	10
Securities Premium Reserve A/c Dr..	120		60	2
To Forfeited Shares A/c		360	60	6
To Equity share 1st Call A/c		180	60	3
To Equity share 2nd and Final Call A/c		180	60	3
(Being 60 shares forfeited)

Bank A/c Dr..	720		80	9
Forfeited Shares A/c Dr…	80		80	1
To Share Capital A/c		800	80	10
(Being 1300 shares reissued)

Forfeited Shares A/c Dr..	400
To Capital Reserve A/c		400
(Being balance in Forfeited Shares A/c transferred
to Capital Reserve)

Note : Amount transferred to Capital Reserve

Description	X	Y	Total
No of shares forfeited	40	60	100
Amount paid on forfeited shares	240	360	600
Amount Paid per share	6	6
No of shares reissued	20	60	80
Amount paid on shares reissued	120	360	480

Less - Discount on reissue			80

Amount transferred to Capital Reserve			400

Description	X		Y
Shares Applied	48		72
Shares alloted	40		60
Application Money	288
	Capital	Premium
Due on Application	200	40
Paid/Adjusted	200	40
Excess for allotment	48

Due on Allotment	40	40
Advance Adjusted	40	8
Arrears on Allotment	0	32

Due on 1st Call	80	40
Paid/Adjusted
Arrears 1st Call	80	40

Note : Amount received on Allotment
Total Amount due on allotment				4000
Less - Received in advance				2400
Less - Calls in arrears for X				32

Amount Received				1568

Note : Amount received on 1st Call
Total Amount due on 1st Call				6000
Less - Received in advance				0
Less - Calls in Arrears for X				120
Less - Calls in Arrears for Y				180
Amount received on 1st Call				5700

Note : Amount received on 2nd Call
Total Amount due on 2nd Call				5880
Less - Received in advance				0
Less - Calls in arrears of Y				180

Amount received				5700

XYZ Ltd.

Balance Sheet as at …...

	Particulars	Note No	Rs
I	Equity and Liabilities
	Shareholders Funds
	(a) Share Capital	1	19920
	(b) Reserves and Surplus	2	8168
	Current Liabilities
	Other Current Liabilities
	Total		28088

II	Assets
	Tangible Assets
	Building	3	0
	Current Assets
	Cash and Cash Equivalents	4	28088
	Total		28088

	Notes to Accounts	Amount	Shares	Per share

1	Share Capital
	Authorised Capital
	Equity Shares of Rs each	0
		0
		0
	Issued Capital
	2000 Equity Shares of Rs 10 each	20000	2000	10
		0
		20000
	Subscribed Capital
	Subscribed and Fully Paid Up
	1980 Equity Shares of Rs 10 each	19800	1980	10

		0
		19800
	Subscribed but not Fully Paid Up
	Equity Shares of Rs each Rs called Up	0
	Less - Calls in Arrears	0
		0

	Add - Forefeited Shares	120
	Amount to be shown in the Balance Sheet against Share	19920
	Capital
2	Reserves and Surplus
	Securities Premium Reserve A/c	7768
	Capital Reserve	400
	Total	8168

3	Tangible Assets
	Building
4	Cash and Cash Equivalents
	Cash at Bank	28088

Cash A/c
Date	Particulars	Amount	Date	Particulars	Amount
	To Equity Share Application A/c	18000		By Equity Share Application	3600
	To Equity Share Allotment A/c	1568		By Balance C/d	28088
	To Equity Share 1st Call A/c	5700
	To Equity Share 2nd and Final Call A/c	5700
	To Equity Share Capital	720




	Total	31688		Total	31688

▶ 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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