T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 41 to 50

Solution for Q 41 to 50 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, issue of shares for consideration other than cash.

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 41

Particulars	Dr	Cr	Shares	Per share
Sundry Assets A/c Dr..	500000		400000	12.5
To Geeta & Co A/c		500000
(Being assets purchased from Geeta & Co for Rs
5,00,000)

Geeta & Co A/c Dr..	500000
To Equity Share Capital A/c		320000	32000	10
To Security Premium Reserve A/c		80000	32000	2.5
To Bank A/c		100000
(Being 32000 shares @ Rs 10 each issued at 25%
premium to Geeta & Co)

Note :
Sundry Assets	500000
Less - Paid by bank draft	100000
Sum paid through shares issued	400000
Issue price Per Share	12.5	(10 + 2.5)
No of shares issued	32000	(400000/12.5)

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Question 42

Particulars	Dr	Cr	Shares	Per share
Machinery A/c Dr..	1700000
To Mona Ltd A/c		1700000
(Being Machinery purchased from Ayer Ltd for Rs
10,00,000)

Mona Ltd A/c Dr..	1700000
To Equity Share Capital A/c		1088000	10880	100
To Security Premium Reserve A/c		272000	10880	25
To Bank A/c		340000
(Being 10880 shares @ Rs 100 each issued at 25%
premium to Mona Ltd)

Note :
Machinery Purchased	1700000
Less - Paid by check	340000
Sum paid through shares issued	1360000	(1700000 Less 340000)
Per Share Value	125	(100+25)
No of shares issued	10880

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Question 43

Particulars	Dr	Cr	Shares	Per share
Sundry Assets A/c Dr..	4000000
Goodwill A/c Dr..	150000
To Sundry Liabilities A/c		750000
To Moon Ltd A/c		3400000
(Being Sundry assets and liabilities purchased)

Moon Ltd A/c Dr..	3400000
To 10% Preference Share Capital A/c		1760000	17600	100
To Security Premium Reserve A/c		440000	17600	25
To Bank A/c		1200000
(Being 17600 shares @ Rs 100 each issued at 25%
premium to Moon Ltd)

Note : Calculation of Purchase Consideration
Face Value of Shares issued	1760000	(17600 * 100)
Add - Security Premium Reserve	440000	(17600 * 25)
Add - Bank Draft	1200000
Total - Purchase Consideration	3400000

Net Assets Purchased
Sundry Assets	4000000
Less - Sundry Liabilities	750000
Net Assets	3250000

Goodwill (Purchase consideration - Net Assets)	150000	(3400000-3250000)

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Question 44

Particulars	Dr	Cr	Shares	Per share
Assets A/c Dr..	4500000
To Liabilities A/c		640000
To Mature Ltd A/c		3600000
To Capital Reserve A/c		260000
(Being Asset and Liabilities purchased from Mature
Ltd)

Mangla Tubes Ltd A/c Dr..	3600000		30000
To Equity Share Capital A/c		3000000		100
To Securities Premium Reserve A/c		450000		15
To Bank A/c		150000
(Being 133333 shares @ Rs 10 each issued to
Vendor)

Calculation of Net Assets :
Assets	4500000
Less - Liabilities	640000
Net Assets	3860000	kitne ki cheej aayi hai
Less - Purchase consideration	3600000
Capital Reserve	260000
(As Purchase consideration < Net Assets)

Note : Calculation of No of Shares issued
Purchase Consideration	3600000
Less - Bank Draft	150000
Balance paid by shares issue	3450000
Per Share Value	115
No of Shares	30000

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Question 45

Particulars	Dr	Cr	Shares	Per share
Plant A/c Dr..	700000
Stock-In-Trade A/c Dr..	900000
Land and Building A/c Dr..	1200000
Goodwill A/c	400000
To Sundry Creditors A/c		200000
To Sharma & Co A/c		3000000
(Being Asset and Liabilities purchased from Vendor
for Rs 30,00,000)

Sharma & Co A/c Dr..	3000000		30000
To Equity Share Capital A/c		3000000		100
(Being 30,000 shares @ Rs 100 each issued to
Sharma & Co)

Calculation of Net Assets :
Plant	700000
Stock in Trade	900000
Land and Buildings	1200000
Total Assets	2800000
Less - Sundry Creditors	200000
Net Assets	2600000
Less - Purchase consideration	3000000	30000	100
(Fully Paid up shares issued)
Goodwill	400000
(As Purchase consideration is higher than Net Assets)

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Question 46

Particulars	Dr	Cr	Shares	Per share
Machinery A/c Dr..	4000000
Tools and Dies A/c Dr..	1000000
To Liabilities A/c		2500000
To Mangla Tubes Lts A/c		2000000
To Capital Reserve A/c		500000
(Being Asset and Liabilities purchased from Vendor)

Mangla Tubes Ltd A/c Dr..	2000000		133333
To Equity Share Capital A/c		1333330	133333	10
To Securities Premium Reserve A/c		666665	133333	5
To Bank A/c		5
(Being 133333 shares @ Rs 10 each issued to
Vendor)

Calculation of Net Assets :
Machinery	4000000
Tools and Dies	1000000
Total Assets	5000000
Less - Liabilities	2500000
Net Assets	2500000	kitne ki cheej aayi hai
Less - Purchase consideration	2000000	30000	100
Capital Reserve	500000
(As Purchase consideration < Net Assets)

Note : Calculation of No of Shares issued
Purchase Consideration	2000000
Per Share Value	15
No of Shares	133333

Share capital	1333330
Securities Premium Reserve	666665
Total shares	1999995

Balance paid in cash since shares
cannot be issued in fractions	5

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Question 47

Particulars	Dr	Cr	Shares	Per share
Sundry Assets A/c Dr..	700000
To Sundry Liabilities A/c		200000
To Sanchar Ltd A/c		459500
To Capital Reserve A/c (500000-459500)		40500
(Being Asset and Liabilities purchased from M/s
Sanchar Ltd for Rs 459500)

Sanchar Ltd A/c Dr..	459500
To Equity Share Capital A/c		410000	41000	10
To Securities Premium Reserve A/c		41000	41000	1
To Bills Payable A/c		8500
(Being 41000 shares @ Rs 10 each at a premium of
10% issued to Sanchar Ltd and balance payable after
3 months through Bills Payable)

Working Note :
Calculation of Capital Reserve :
Sundry Assets	700000
Less - Sundry Liabilities	200000
Net Assets Purchased	500000	cheej aayi
Less Purchase consideration	459500	paise diye
Capital Reserve	40500
(Since Net Assets > Purchase Consideration)

Calculation of No of Shares Issued :
Total Amount Payable	459500
Less - Paid through Bills Payable	8500
Balance paid through equity shares	451000	Total payment through equity shares
Per share face Value	10
Per share Premium (10%)	1
Total Issue Price per share	11	Issue price per share
No of Shares Issued	41000	(451000/11)

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Question 48

Particulars	Dr	Cr	Shares	Per share
Building	650000
Plant and Machinery	250000
Stock	500000
Trade Receivables	250000
Goodwill A/c	50000
To Trade Payables A/c		200000
To Sanchar Ltd A/c		1500000
(Being Asset and Liabilities purchased from M/s Rai
Brothers for Rs 15,00,000)

Sanchar Ltd A/c Dr..	1500000
To Equity Share Capital A/c		1125000	11250	100
To Securities Premium Reserve A/c		225000	11250	20
To Bank A/c		150000
(Being 11250 shares @ Rs 100 at a premium of 20%
each issued to Sanchar ltd and balance paid through
Cheque)

	Working Note:
	Calculation of Goodwill :
	Building	650000
Add	Plant and Machinery	250000
Add	Stock	500000
Add	Trade Receivables	250000
	Total Assets	1650000
	Less - Trade Payables	200000
	Net Assets	1450000	(1650000-200000)
	Less - Purchase Consideration	1500000
	Goodwill	50000
	(Net Assets < Purchase Consideration)

	Calculation of No of shares issued :
	Total Purchase consideration	1500000
	Less - Payable by check (10%)	150000
	Balance payable through shares	1350000
	Face Value Per share	100
	Add - Premium (20%)	20
	Issue Price per share	120

	No of shares issued	11250	(1350000/120)

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Question 49

Particulars	Dr	Cr	Shares	Per share
Incorporation Exp A/c Dr..	500000
To Promoters A/c		500000
(Being Incorporation expenses incurred Rs 5,00,000)

Promoters A/c Dr..	500000		50000
To Equity Share Capital A/c		500000		10
(Being 50000 shares @ Rs 10 each issued to
Promotion against incorporation expenses)

Underwriting Commission A/c Dr..	20000		2000	10
To Underwriters A/c		20000
(Being Incorporation expenses incurred Rs 5,00,000)

Underwiters A/c Dr..	20000		2000
To Equity Share Capital A/c		20000		10
(Being 2000 shares @ Rs 10 each issued to
underwriters)

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Question 50

Particulars	Dr	Cr	Shares	Per share
Share Capital A/c Dr..	50000		5000	10
To Forfeited Shares A/c		18000	6000	3
To Share Allotment A/c		22000
To Share Final Call A/c		10000	5000	2
(Being 5000 shares forfeited due to non payment of
allotment money and call money)

Bank A/c Dr..	36000		3000	12
To Share Capital A/c		30000	3000	10
To Securities Premium Reserve A/c		6000	3000	2
(Being 3000 shares reissued at premium)

Forfeited Shares A/c Dr..	10800		3000	3.6
To Capital Reserve A/c		10800
(Being Balance of Forfeited Shares transferred to
Capital Reserve A/c)

Note : Calculation of calls in arrears on allotment
Application money paid	6000	3	18000
Less - Amount used on application	5000	3	15000
Excess Money			3000

Amount due on Allotment	5000	5	25000
Calls in Arrears on Allotment (25000-3000)			22000

Note : Calculation of Capital Reserve	Amount	Shares	Per Share
Amount forfeited	18000	5000	3.6
Amount forfeited on 3000 shares	10800	3000
Discount on Reissue	0
Capital Reserve	10800

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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 110-115

T S Grewal Solutions – Issue of Shares – All Questions

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

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