T S Grewal Solutions 2026-27 [Class 12] – Issue of Shares– Q 71 to 80

Solution for Q 61 to 70 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 forfeiture and reissue of shares issued at par

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 71
In the books of Moneyplus Ltd
 
Date Particulars         Dr Cr Shares Per share
01-May-23 Share Capital A/c Dr..   3000   200 15
         To Forfeited Shares A/c     2000 200 10
         To Share 1st Call A/c     1000 200 5
  (Being 200 shares forfeited due to non payment of          
  allotment and 1st Call money)          
                   
11-May-23 Bank A/c Dr..   2000   200 10
  Forfeited Shares A/c   1000   200 5
         To Share Capital A/c     3000 200 15
  (Being 200 shares reissued)          
                   
11-May-23 Forfeited Shares A/c Dr..   1000      
         To Capital Reserve A/c     1000    
  (Being balance in Forfeited Shares A/c transferred to          
  Capital Reserve)          
▶ Video Solution: Coming Soon

Question 72
In the books of Khyati Ltd.
 
Date Particulars         Dr Cr Shares Per share
1st May Share Capital A/c Dr..   20000   2000 10
         To Forfeited Shares A/c     15000 2000 7.5
         To Share Final Call A/c     5000 2000 2.5
  (Being 2000 shares forfeited due to non payment of          
  1st Call money)          
                   
10th June Bank A/c Dr..   10800   1800 6
  Forfeited Shares A/c   7200   1800 4
         To Share Capital A/c     18000 1800 10
  (Being 1800 shares reissued)          
                   
  Forfeited Shares A/c Dr..   6300      
         To Capital Reserve A/c     6300    
  (Being balance in Forfeited Shares A/c transferred to          
  Capital Reserve)          
                   
  Note : Amount transferred to Capital Reserve              
    Amount Credited to Share Forefeiture on 1800 shares   13500 (15000/2000 X 1800)    
    Discount given on reissue   7200      
    Amount transferred to Capital Reserve       6300      
▶ Video Solution: Coming Soon

Question 73
In the books of Sunshine Industries
 
Particulars         Dr Cr Shares Per share
Bank A/c Dr..   500000   20000 25
      To Equity Share Application A/c     500000    
( Being share application money received for 20000          
shares @ Rs 25 per share)          
                 
Equity Share Application A/c   500000   20000  
       To Equity Share Capital A/c     500000   25
            0    
( Being share application money received for 20000          
shares transferred to Share Capital A/c @ Rs 25 per          
share)          
                 
Equity Share Allotment A/c   500000   20000  
       To Equity Share Capital A/c     500000   25
            0    
( Being share allotment money for 20000 shares          
transferred to Share Capital A/c @ Rs 25 per share)          
                 
Bank A/c   500000   20000 25
       To Equity Share Allotment A/c     500000    
( Being share allotment money received for 20000          
shares @ Rs 25 per share )          
                 
Equity Share 1st Call A/c   500000   20000  
       To Equity Share Capital A/c     500000   25
            0    
( Being share 1st Call money for 20000 shares          
transferred to Share Capital A/c @ Rs 25 per share)          
                 
Bank A/c   490000   19600 25
       To Equity Share 1st Call A/c     490000    
( Being share 1st Call money received for 19600          
shares @ Rs 25 per share )          
                 
Share Capital A/c Dr..   30000   400 75
       To Forfeited Shares A/c     20000 400 50
       To Share 1st and Final Call A/c     10000 400 25
(Being 400 shares forfeited due to non payment of          
1st Call money)          
                 
Bank A/c Dr..   28000   400 70
Forfeited Shares A/c Dr..   2000   400 5
       To Share Capital A/c     30000 400 75
(Being 400 shares reissued)          
                 
Forfeited Shares A/c Dr..   18000      
       To Capital Reserve A/c     18000    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credited to Forfeited Shares on 400 shares   20000      
  Discount given on reissue   2000      
  Amount transferred to Capital Reserve       18000      
▶ Video Solution: Coming Soon

Question 74
In the books of Mahira Ltd.
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   6400   800 8
       To Forfeited Shares A/c     4000 5  
       To Share 1st Call A/c     2400 3  
(Being 800 shares forfeited due to non payment of          
1st Call money)          
                 
Bank A/c Dr..   2800   400 7
Forfeited Shares A/c   400   400 1
       To Share Capital A/c     3200 400 8
(Being 1000 shares reissued)          
                 
Forfeited Shares A/c Dr..   1600      
       To Capital Reserve A/c     1600    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Working Note :                
Note : Amount transferred to Capital Reserve                
Total Amount forfeited   4000        
Total shares forfeited   800        
Amount forfeited per share   5        
                 
Number of shares reissued   400        
Amount forfeited on shares reissued   2000        
Less - Discount on reissue   400        
                 
Amount transferred to Capital Reserve       1600        
▶ Video Solution: Coming Soon

Question 75
In the books of Hindustan Manufacturing Ltd.
 
Particulars         Dr Cr Shares Per share  
Equity Share 2nd and Final Call A/c   250000   100000    
       To Equity Share Capital A/c     250000   2.5  
            0      
( Being share 2nd and Final Call money for 100000            
shares transferred to Share Capital A/c @ Rs 2.5 per            
share)            
                   
Bank A/c   249750   99900 2.5  
       To Equity Share 2nd and Final Call A/c     249750      
( Being share 2nd and Final Call money received for            
99900 shares @ Rs 2.5 per share )            
                   
Share Capital A/c Dr..   1000   100 10  
       To Forfeited Shares A/c     500 100 5  
       To Share 1st Call A/c     250 100 2.5  
       To Share 2nd and Final Call A/c     250 100 2.5  
(Being 100 shares forfeited due to non payment of            
1st Call and 2nd Call money)            
                   
Bank A/c Dr..   800   100 8  
Forfeited Shares A/c Dr..   200   100 2  
       To Share Capital A/c     1000 100 10  
(Being 100 shares reissued)            
                   
Forfeited Shares A/c Dr..   300        
       To Capital Reserve A/c     300      
(Being balance in Forfeited Shares A/c transferred to            
Capital Reserve)            
                   
Note : No of Equity Shares (1000000/10)       1000000 10 100000    
Note : Amount transferred to Capital Reserve                
  Amount paid on 100 shares   500        
  Discount given on reissue   200        
  Amount transferred to Capital Reserve       300        
Hindustan Manufacturing Ltd.
Balance Sheet as at …...
  Particulars         Note No Rs    
I Equity and Liabilities          
  Shareholders Funds          
  (a) Share Capital   1 1000000    
  (b) Reserves and Surplus   2 300    
  Current Liabilities          
  Other Current Liabilities          
  Total     1000300    
                   
II Assets          
  Tangible Assets          
  Land   3      
  Current Assets          
  Cash and Cash Equivalents   4 1000300    
  Total           1000300    
  Notes to Accounts           Amount Shares Per share
                   
1 Share Capital        
  Authorised Capital        
   Equity Shares of Rs each   0    
              0    
              0    
  Issued Capital        
   Equity Shares of Rs each   0    
              0    
              0    
  Subscribed Capital        
  Subscribed and Fully Paid Up        
  100000 Equity Shares of Rs 10 each   1000000 100000 10
                   
              0    
              1000000    
  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 in the Balance Sheet against Share Capital   1000000    
                   
2 Reserves and Surplus        
  Capital Reserve   300    
3 Tangible Assets        
  Land        
4 Cash and Cash Equivalents        
  Cash at Bank   1000300    
                   
Note :
All the shares forfeited are reissued as fully paid up, so
entire share capital will come under subscribed and fully
paid up
Company has received full amount on shares after
reissuing the shares and nothing is pending.
Further it has gained Rs 300 standing in capital reserve.
So total cash balance will be Rs 10,00,300
▶ Video Solution: Coming Soon

Question 76
In the books of Star Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   45000   500 90
       To Forfeited Shares A/c     30000 500 60
       To 1st Call A/c     15000 500 30
(Being 500 shares forfeited due to non payment of          
1st Call money)          
                 
Bank A/c Dr..   39000   300 130
       To Share Capital A/c     30000 300 100
       To Securities Premium Reserve A/c     9000 300 30
(Being 300 shares reissued)          
                 
Forfeited Shares A/c Dr..   18000      
       To Capital Reserve A/c     18000    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Calculation of reissue price per share              
  Amount received on reissue   39000      
  No of shares reissued   300      
  Reissue price per share       130      
Note : Amount transferred to Capital Reserve              
  Amount paid on 300 shares   18000 (30000/500 X 300)    
  Discount given on reissue   0      
  Amount transferred to Capital Reserve       18000      
▶ Video Solution: Coming Soon

Question 77 (i)
In the books of Devendra Ltd
 
Date Particulars         Dr Cr Shares Per share
01-Jan-20 Share Capital A/c Dr..   1000   100 10
         To Forfeited Shares A/c     800 100 8
         To Share Final Call A/c     200 100 2
  (Being 100 shares forfeited due to non payment of          
  Final Call money)          
                   
1st feb Bank A/c Dr..   420   60 7
  Forfeited Shares A/c Dr..   180   60 3
         To Share Capital A/c     600 60 10
  (Being 60 shares reissued)          
                   
  Forfeited Shares A/c Dr..   300      
         To Capital Reserve A/c     300    
  (Being balance in Forfeited Shares A/c transferred to          
  Capital Reserve)          
                   
  Note : Amount transferred to Capital Reserve              
    Amount credited to forfeiture on 60 shares   480 (800/100*60)    
    Discount given on reissue   180      
    Amount transferred to Capital Reserve       300      
▶ Video Solution: Coming Soon

Question 77 (ii)
In the books of Virendra Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   1200   20 60
       To Forfeited Shares A/c     400 20 20
       To Calls in Arrears A/c     800 20 40
(Being 20 shares forfeited due to non payment of          
Call money)          
                 
Bank A/c Dr..   675   15 45
Forfeited Shares A/c Dr..   225   15 15
       To Share Capital A/c     900 15 60
(Being 15 shares reissued)          
                 
Forfeited Shares A/c Dr..   75      
       To Capital Reserve A/c     75    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credited to forfeiture on 15 shares   300 (400/20 X 15)    
  Discount given on reissue   225      
  Amount transferred to Capital Reserve       75      
Note : No information given in the question on whether allotment, 1st or 2nd call
  is pending. So entry is made in Calls in Arrears A/c in made
▶ Video Solution: Coming Soon

Question 78 (i)
In the books of KBC Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   2400   300 8
       To Forfeited Shares A/c     1500 300 5
       To Share 2nd Call A/c     900 300 3
(Being 300 shares forfeited due to non payment of          
2nd Call money)          
                 
Bank A/c Dr..   3000   300 10
Forfeited Shares A/c Dr..   0   300 0
       To Share Capital A/c     3000 300 10
(Being 300 shares reissued)          
                 
Forfeited Shares A/c Dr..   1500      
       To Capital Reserve A/c     1500    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credit to forfeiture on 300 shares   1500      
  Discount given on reissue   0      
  Amount transferred to Capital Reserve       1500      
▶ Video Solution: Coming Soon

Question 78 (ii)
In the books of KK Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   4000   400 10
       To Forfeited Shares A/c     2400 400 6
       To Share Final Call A/c     1600 400 4
(Being 400 shares forfeited due to non payment of          
Final Call money)          
                 
Bank A/c Dr..   4800   400 12
Forfeited Shares A/c Dr..   0      
       To Share Capital A/c     4000 400 10
       To Securities Premium Reserve A/c     800 400 2
(Being 400 shares reissued)          
                 
Forfeited Shares A/c Dr..   2400      
       To Capital Reserve A/c     2400    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credited to forfeiture on 400 shares   2400      
  Discount given on reissue   0      
  Amount transferred to Capital Reserve       2400      
▶ Video Solution: Coming Soon

Question 78 (iii)
In the books of Light Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   2500   250 10
       To Forfeited Shares A/c     750 250 3
       To Share Allotment A/c     750 250 3
       To Share Final Call A/c     1000 250 4
(Being 250 shares forfeited due to non payment of          
Allotment and Final Call money)          
                 
Bank A/c Dr..   2000   250 8
Forfeited Shares A/c Dr..   500   250 2
       To Share Capital A/c     2500 250 10
(Being 400 shares reissued)          
                 
Forfeited Shares A/c Dr..   250      
       To Capital Reserve A/c     250    
(Being balance in Forfeited Shares A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credited to forfeiture on 250 shares   750      
  Discount given on reissue   500      
  Amount transferred to Capital Reserve       250      
▶ Video Solution: Coming Soon

Question 79
Name of Allottee       Rekha Sunita Tina Total  
        100 shares 200 shares 300 shares    
Share Application - Rs 1     Due 100 200 300 600  
      Received 100 200 300 600  
      Arrears 0 0 0 0  
Share Allotment - Rs 2     Due 200 400 600 1200  
      Received 0 400 600 1000  
      Arrears 200 0 0 200  
Share 1st Call - Rs 3     Due 300 600 900 1800  
      Received 0 0 900 900  
      Arrears 300 600 0 900  
Share 2nd Call - Rs 4     Due 400 800 1200 2400  
      Received 0 0 0 0  
      Arrears 400 800 1200 2400  
In the books of …
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   6000   600 10
       To Forfeited Shares A/c     2500    
       To Share Allotment A/c     200    
       To Share 1st Call A/c     900    
       To Share 2nd Call A/c     2400    
(Being 600 shares forfeited due to non payment of          
allotment and Call money)          
                 
Bank A/c Dr..   6600   600 11
       To Share Capital A/c     6000 600 10
       To Securities Premium Reserve A/c     600 600 1
(Being 600 shares reissued)          
                 
Forfeited Shares A/c Dr..   2500      
       To Capital Reserve A/c     2500 1250  
(Being balance in share forfeiture A/c transferred to          
Capital Reserve)          
▶ Video Solution: Coming Soon

Question 80 (i)
In the books of Basak Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   140   20 7
       To Share Forfeiture A/c     100 20 5
       To Calls in Arrears     40 20 2
(Being 20 shares forfeited due to non payment of          
Call money)          
                 
Bank A/c Dr..   120   15 8
       To Share Capital A/c     105 15 7
       To Securities Premium Reserve A/c     15 15 1
(Being 15 shares reissued)          
                 
Forfeited Shares A/c Dr..   75      
       To Capital Reserve A/c     75    
(Being balance in share forfeiture A/c transferred to          
Capital Reserve)          
                 
Note : Amount transferred to Capital Reserve              
  Amount credited to forfeiture on 15 shares   75 (100/20 X 15)    
  Discount given on reissue   0      
  Amount transferred to Capital Reserve       75      
▶ Video Solution: Coming Soon

Question 80 (ii)
In the books of Y Ltd
 
Particulars         Dr Cr Shares Per share
Share Capital A/c Dr..   720   90 8
Securities Premium Reserve A/c Dr..   180   90 2
       To Forfeited Shares A/c     450 90 5
       To Shares Allotment A/c     450 90 5
(Being 90 shares forfeited due to non payment of          
allotment money)          
                 
Bank A/c Dr..   800   80 10
       To Share Capital A/c     640 80 8
       To Securities Premium Reserve A/c     160 80 2
(Being 80 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 : Calculation of amount payable on appplicable per share              
  Amount called up till date     8    
Less Amount payable on allotment   5      
  Less - Premium on allotment   2 3    
  Amount Payable per share on Application     5    
                 
Note : Amount transferred to Capital Reserve          
  Amount credited to forfeiture on 80 shares   400 (450/90 X 80)    
  Discount given on reissue   0      
  Amount transferred to Capital Reserve       400      
▶ 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 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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