T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 21 to 30

Solution for Q 21 to 30 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, journal entries at the time of issue of shares for cash at par, issue of shares for cash at premium and preparation of cash book, undersubscription, oversubscription and pro rata allotment

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 21.

In the books of Sangam Marbles Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	2500000		25000	100
To Equity Share Application and Allotment A/c		2500000
(Being share application money received for 25000
shares @ Rs 100 per share)

Equity Share Application and Allotment A/c Dr	2500000		25000	100
To Equity Share Capital A/c		2000000
To Bank A/c		500000
(Being share application money received for 20000
shares @ Rs 100 per share transferred to Share
Capital A/c and remaining amount refunded)

▶ Video Solution: Coming Soon

Question 22.

In the books of Seiko Watches Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	180000		60000	3
To Equity Share Application A/c		180000
(Being share application money received for 60000
shares @ Rs 3 per share)

Equity Share Application A/c Dr	180000
To Equity Share Capital A/c		150000	50000	3
To Bank A/c		30000	10000	3
(Being share application money adjusted and
transferred)

Equity Share Allotment A/c Dr	200000		50000
To Equity Share Capital A/c		200000
(Being share allotment money due on 50000 shares @
Rs 4 per share)

Bank A/c Dr	200000		50000	4
To Equity Share Allotment A/c		200000
(Being share allotment money received)

Equity Share 1st and Final Call A/c Dr	150000		50000
To Equity Share Capital A/c		150000
(Being 1st and final call money due on 50000 shares
@ Rs 3 per share)

Bank A/c Dr	148500		49500	3
To Equity Share 1st and Final Call A/c		148500
(Being 1st and final call money received)

▶ Video Solution: Coming Soon

Question 23.

In the books of Tiny Tots Company Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	130000		13000	10
To Equity Share Application A/c		130000
(Being share application money received for 13000
shares @ Rs 10 per share)

Equity Share Application A/c Dr	130000
To Share Capital A/c		100000	10000	10
To Bank A/c		20000	2000	10
To Share Allotment A/c		10000	1000	10
(Being share application money adjusted)

Equity Share Allotment A/c Dr	500000		10000
To Share Capital A/c		400000
To Securities Premium Reserve A/c		100000
(Being share allotment money due)

Bank A/c Dr	490000		10000	50
To Equity Share Allotment A/c		490000
(Being share allotment money received)

Equity Share 1st and Final Call A/c Dr	600000		10000
To Share Capital A/c		500000
To Securities Premium Reserve A/c		100000
(Being 1st and final call money due)

Bank A/c Dr	600000		10000	60
To Equity Share 1st and Final Call A/c		600000
(Being 1st and final call money received)

Balance Sheet of Tiny Tots Ltd. as at …..
Particulars	Note No.	Amount
I. Equity and Liabilities
1. Shareholder's Funds
a. Share Capital	1	1000000
b. Reserves and Surplus	2	200000
Total		1200000

II. Assets
Current Assets
Cash and Cash Equivalents	3	1200000
Total		1200000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Share Capital

	Issued Share Capital	1000000	10000	100

	Subscribed and Fully Paid-up Share Capital
	10,000 Equity Shares of Rs 100 each	1000000	10000	100


	Subscribed but not Fully Paid-up	0

	Total Share Capital	1000000
2	Reserves and Surplus
	Securities Premium Reserve
	10,000 Shares × Rs 20 per share	200000	10000	20
	Total Reserves and Surplus	200000
3	Cash and Cash Equivalents
	Cash at Bank	1200000
	Total Cash and Cash Equivalents	1200000

▶ Video Solution: Coming Soon

Question 24.

In the books of Sony Media Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	300000		100000	3
To Equity Share Application A/c		300000
(Being share application money received for 1,00,000
shares @ Rs 3 per share)

Equity Share Application A/c Dr	300000
To Equity Share Capital A/c		150000	50000	3
To Equity Share Allotment A/c		150000	50000	3
(Being share application money adjusted)

Equity Share Allotment A/c Dr	200000		50000
To Equity Share Capital A/c		200000
(Being share allotment money due on 50000 shares @
Rs 4 per share)

Bank A/c Dr	49000
To Equity Share Allotment A/c		49000
(Being share allotment money received)

Note :
Description	Anupam
Shares Applied	0
Shares alloted	1000
Application Money	0	(shares applied X 3)
Due on Application	3000	(shares alloted X 3)
Excess	-3000
Due on Allotment-Capital	4000	(shares alloted X 4)
		0
Deficiency on Allotment	7000
Note :
Share applied by Anupam	2000	1000*60000/30000

Note :
Amount received on allotment
Total Money Due on Allotment	200000	(50000*4)
Less - Amount received in advance	0

Less - Anupam Calles in Arrears	7000
Amount received on allotment	193000

▶ Video Solution: Coming Soon

Question 25.

In the books of Sugandh Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	276000		92000	3
To Equity Share Application A/c		276000
(Being share application money received for 92000
shares @ Rs 3 per share)

Equity Share Application A/c Dr	276000
To Equity Share Capital A/c		180000	60000	3
To Bank A/c		6000	2000	3
To Equity Share Allotment A/c		90000	30000	3
(Being share application money adjusted)

Equity Share Allotment A/c Dr	300000		60000
To Equity Share Capital A/c		180000
To Securities Premium Reserve A/c		120000
(Being share allotment money due)

Bank A/c Dr	205800
To Equity Share Allotment A/c		205800
(Being share allotment money received)

Description	Mohan	Sohan
Shares Applied	800	1000
Shares alloted	600	600
Application Money	2400	3000	(Shares applied X 3)
Due on Application	1800	1800	(Shares allotted X 3)
Excess	600	1200
Due on Allotment-Capital	1800	1800	(Shares allotted X 3)
Due on Allotment-Premium	1200	1200	(Shares allotted X 2)
Deficiency on Allotment	2400	1800
(Premium is fully unpaid in both the cases)
Note :
Mohan no of shares allotted			800*30000/40000
Sohan no of shares applied			600*50000/30000

Amount received on Allotment
Money Due on Allotment	300000	60000	5
Less - Received in advance	90000
Less - Calls in Arrears	4200		(Mohan + Sohan)
Amount Received	205800

▶ Video Solution: Coming Soon

Question 26.

In the books of Prinkit Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	450000		150000	3
To Equity Share Application A/c		450000
(Being share application money received for 1,50,000
shares @ Rs 3 per share)

Equity Share Application A/c Dr	450000
To Equity Share Capital A/c		240000	80000	3
To Bank A/c		30000	10000	3
To Equity Share Allotment A/c		140000
To Calls in Advance A/c		40000
(Being share application money adjusted)

Equity Share Allotment A/c Dr	160000		80000
To Equity Share Capital A/c		160000
(Being share allotment money due on 80000 shares @
Rs 2 per share)

Bank A/c Dr	20000
To Equity Share Allotment A/c		20000
(Being share allotment money received)

Equity Share 1st and Final Call A/c Dr	400000		80000
To Equity Share Capital A/c		400000
(Being 1st and final call money due on 80000 shares
@ Rs 5 per share)

Bank A/c Dr	360000
Calls in Advance A/c Dr	40000
To Equity Share 1st and Final Call A/c		400000
(Being 1st and final call money received)

Working Note :
Amount transferred towards allotment and 1st Call
	Cat A	Cat B	Cat C
Shares Applied	80000	60000	10000
Shares Allotted	40000	40000	0
Shares Rejected	40000	20000	10000

Amount received on application	240000	180000	30000
Less - Amount used on Application	120000	120000	0
Balance Amount	120000	60000	30000
Less - Refunded	0	0	30000

Excess Amount for allotment and 1st Call	120000	60000	0

Amount due on allotment	80000	80000
Less - Amount adjusted from excess	80000	60000

Excess Amount for 1st Call	40000
Amount Payable on allotment		20000

Woking Note : Amount received on allotment
Amount Due on Allotment					160000
Less - Advance received on application					0

Amount received on allotment					160000

Woking Note : Amount received on 1st Call
Amount Due on 1st Call					400000
Less - Advance received on application					0

Amount received on 1st Call					400000

▶ Video Solution: Coming Soon

Question 27.

Shares Issued					50000
Appplications Received					60000

Particulars	Cat1	Cat2	Cat3	Total
Applied	40000	15000	5000	60000
Allotted	40000	8000	2000	50000
Rejected	0	7000	3000	10000

Particulars	Cat1	Cat2	Cat3	Total
App Money	120000	45000	15000	180000
Share Cap	120000	24000	6000	150000
Share Allotment		21000		21000
Calls in Adv
Refund			9000	9000

In the books of Eastern Company Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	180000		60000	3
To Equity Share Application A/c		180000
(Being share application money received for 60000
shares @ Rs 3 per share)

Equity Share Application A/c Dr	180000
To Equity Share Capital A/c		150000	50000	3
To Bank A/c		9000
To Equity Share Allotment A/c		21000
(Being share application money adjusted)

Equity Share Allotment A/c Dr	250000		50000
To Equity Share Capital A/c		100000		2
To Securities Premium Reserve A/c		150000		3
(Being share allotment money due)

Bank A/c Dr	229000
To Equity Share Allotment A/c		229000
(Being share allotment money received)

Equity Share 1st Call A/c Dr	150000		50000	3
To Equity Share Capital A/c		150000
(Being 1st call money due on 50000 shares @ Rs 3 per
share)

Bank A/c Dr	149700		49900	3
To Equity Share 1st Call A/c		149700
(Being 1st call money received)

	Cash A/c
Particulars	Amount	Particulars	Amount
To Equity Share Application A/c	180000	By Equity Share Application A/c	9000
To Equity Share Allotment A/c	229000	By Balance C/d	549700
To Equity Share 1st Call A/c	149700

Total	558700	Total	558700

Balance Sheet of Eastern India Co Ltd. as at …..
Particulars	Note No.	Amount
I. Equity and Liabilities
1. Shareholder's Funds
a. Share Capital	1	399700
b. Reserves and Surplus	2	150000
Total		549700

II. Assets
Current Assets
Cash and Cash Equivalents	3	549700
Total		549700

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Share Capital
	1,00,000 Equity Shares of Rs 10 each	1000000	100000	10

	Issued Share Capital
	50,000 Equity Shares of Rs 10 each	500000	50000	10

	Subscribed and Fully Paid-up


	Subscribed but not Fully Paid-up
	50,000 Shares of Rs 10 each, called up Rs 8	400000	50000	10
	Less: Calls in Arrears (100 shares × Rs 3)	300
	Total Share Capital	399700
2	Reserves and Surplus
	Securities Premium Reserve	150000	50000	3
3	Cash and Cash Equivalents
	Cash at Bank	549700

▶ Video Solution: Coming Soon

Question 28.

In the books of A-One Product Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	517000		23500	22
To Equity Share Application and Allotment A/c		517000
(Being share application and allotment money
received for 23500 shares @ Rs 22 per share)

Equity Share Application and Allotment A/c Dr	517000		23500
To Equity Share Capital A/c		470000
To Securities Premium Reserve A/c		47000
(Being share application and allotment money
transferred to Share Capital and Securities Premium)

Working Note :
No of shares applied = 517000/22 = 23500 shares
A-one Products Ltd issued 25000 equity shares
Minimum subscription will be 90% of 25000 = 22500 shares
The company has received applitions more than the minimum
subscription so it can go ahead with the allotment

Balance Sheet of A-One Products Ltd. as at …..
Particulars	Note No.	Amount
I. Equity and Liabilities
1. Shareholder's Funds
a. Share Capital	1	470000
b. Reserves and Surplus	2	47000
Total		517000

II. Assets
Current Assets
Cash and Cash Equivalents	3	517000
Total		517000

	Notes to Accounts	Amount	Shares	Per Share
1	Share Capital
	Authorised Share Capital
	50,000 Equity Shares of Rs 20 each	1000000	50000	20

	Issued Share Capital
	25,000 Equity Shares of Rs 20 each	500000	25000	20

	Subscribed and Fully Paid-up
	23,500 Equity Shares of Rs 20 each	470000	23500	20

	Subscribed but not Fully Paid-up	0

	Total Share Capital	470000
2	Reserves and Surplus
	Securities Premium Reserve
	23,500 Shares × Rs 2 per share	47000	23500	2
	Total Reserves and Surplus	47000
3	Cash and Cash Equivalents
	Cash at Bank	517000
	Total Cash and Cash Equivalents	517000

▶ Video Solution: Coming Soon

Question 29.

In the books of Home Products Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	187500		62500	3
To Equity Share Application and Allotment A/c		187500
(Being share application money received for 62500
shares @ Rs 3 per share)

Equity Share Application and Allotment A/c Dr	187500
To Bank A/c		187500	62500	3
(Being application money refunded due to non receipt
of minimum subscription)

Note :

Home Products Ltd issued 70000 equity shares

Minimum subscription will be 90% of 70000 = 63000 shares

Since the applications are only for 62500 shares, so the minimum subscription is not received

The company has to return the whole money

▶ Video Solution: Coming Soon

Question 30.

In the books of Quality Stationers Ltd
Particulars	Dr	Cr	Shares	Per Share
Bank A/c Dr	440000		22000	20
To Equity Share Application and Allotment A/c		440000
(Being share application money received for 22000
shares @ Rs 20 per share)

Equity Share Application and Allotment A/c Dr	440000
To Bank A/c		440000	22000	20
(Being share application money returned due to non
receipt of minimum subscription)

Note :

No of shares applied = 440000/20 = 22000 shares

Note :

Quality Stationery Ltd issued 50000 equity shares

Minimum subscription will be 90% of 50000 = 45000 shares

Since the applications are only for 22000 shares, so the minimum subscription is not received

The company has to return the whole money

Share capital of the company will be Nil

▶ Video Solution: Coming Soon

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