12th | Accounting For Share Capital / Issue of share capital | Question No. 105 To 108 | Ts Grewal Solution 2026-2027

Question 105:

Visa Ltd. offered 10,000 shares of ₹100 each payable as follows: on application: ₹3, on allotment: ₹2, on first call: ₹3, on second call: ₹2. Public applied for 13,000 shares. Shares were allotted on pro rata to the applicants of 12,000 shares. All the shareholders have paid the amount up to allotment except Mohan, the allottee of 200 shares. His shares were forfeited. First call was then made. Forfeited shares were reissued @ ₹9 per share, ₹8 called-up. Second call has not yet been made. You are required to make the Cash Book and pass the Journal entries.

Answer:

Application	₹3
Allotment	₹2
First Call	₹3
Final call	₹2

Shares applied = 13,000 shares

Shares Issued = 10,000 shares

Books of Visa Ltd. Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c	Dr.		39,000
	To Share Application A/c				39,000
	(Share application money received for 13,000 shares at ₹ 3 each)
	Share Application A/c	Dr.		39,000
	To Share Capital A/c (10,000×3)				30,000
	To Share Allotment A/c (2,000×3)				6,000
	To Bank A/c (1,000×3)				3,000
	(Share application of 10,000 shares transferred to Share Capital)
	Share Allotment A/c Dr.			20,000
	To Share Capital A/c				20,000
	(Share allotment due on 10,000 shares at ₹ 2 each)
	Bank A/c Dr.			13,720
	To Share Allotment A/c				13,720
	(Being Share allotment money received except 200 shares due on allotment)
	Share Capital A/c (200×5)	Dr.		1,000
	To Share forfeited A/c (200×3)				720
	To Share Allotment A/c (200×2) (Being 200 shares forfeited for non-payment of Allotment)				280
	Share First Call A/c	Dr.		29,400
	To Share Capital A/c				29,400
	(Being First call due on 9,800 shares at ₹ 3 each)
	Bank A/c			29,400
	To Share First Call A/c				29,400
	(Being amount receive on 9,800 shares for first call)
	Bank A/c (200×9)	Dr.		1,800
	To Share Capital A/c (200×8)				1,600
	To Securities Premium Reserve A/c				200
	(200×1)
	(Being 200 Share Re-issued at @₹9 called up @₹8)
	Bank A/c		Dr.
	To Share Capital A/c

	Share forfeited A/c Dr.			720
	To Capital Reserve A/c				720
	( Being balance in the forfeited amount of 200 shares transfer to capital reserve account)

Cash Book (Only Bank Column)
Dr.			Cr.
Particulars	Bank ( ₹)	Particulars	Bank ( ₹)
To Share Application A/c	39,000	By Share Application A/c	3,000
To Share Allotment A/c	13,720	By Balance C/d	80,920
To Share First Call A/c	29,400
To Share Capital A/c	1,600
To SPR A/c	200
	83,920		83,920

Question 106:

Saregama Ltd. invited applications for issuing 80,000 equity shares of ₹100 each at a premium of ₹10. The amount was payable as follows:

On Application ₹30

On Allotment ₹30 (including a premium of ₹10)

On First Call ₹30

On Final Call Balance

Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all applicants. Excess money received on application was adjusted on sums due on allotment. Dhwani, who was allotted 1,600 shares, failed to pay allotment money and Sargam who applied for 6,000 shares did not pay first call money. These shares were forfeited immediately after first call. 2,000 of these shares (including all shares of Dhwani were issued to Tarang for ₹95 per share as ₹80 paid-up. Pass necessary Journal entries in books of Saregama Ltd. by opening Calls-in-Arrear and Calls-in-Advance Accounts, if final call has not been made.

(CBSE Sample Paper 2019)

Answer:

In the books of Saregama Ltd.
Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)

	Bank A/c (1,20,000×30)	Dr.		36,00,000
	To Equity Share application A/c				36,00,000
	(Being share application money received)


	Equity Share application A/c	Dr.		36,00,000
	To Equity Share Capital A/c				24,00,000
	To Equity Share Allotment A/c (Being share application money transferred to share capital and allotment)				12,00,000

	Equity Share Allotment A/c (80,000 × 30)	Dr.		36,00,000
	To Equity Share Capital A/c (80,000 × 20)				16,00,000
	To securities premium reserve A/c (80,000 × 10)				8,00,000
	(Allotment money due)

	Bank A/c	Dr.		11,76,000
	Calls in arrears A/c	Dr.		24,000
	To Equity Share Allotment A/c				12,00,000
	(Allotment money received)

	Equity Share First Call A/c (80,000 × 3)	Dr.		24,00,000
	To Equity Share Capital A/c				24,00,000
	(Call money due)

	Bank A/c (1,60,000 × 2)	Dr.		22,32,000
	Calls in arrears A/c (1600×30)	Dr.		48,000
	Calls in arrears A/c (4000×30)	Dr.		1,20,000
	To Equity Share First Call A/c				24,00,000
	(Call money received)

	Equity Share Capital A/c	Dr.		1,28,000
	Securities premium reserve a/c	Dr.		16,000
	To Calls in arrears A/c (allotment)				24,000
	To Calls in arrears A/c (1600×30)				48,000
	To share forfeited A/c (2400×30)				72,000
	(Being shares of Dhanwani forfeited)

	Equity Share Capital A/c (400×95)	Dr.		38,000
	To Calls in arrears A/c (400×80)				32,000
	To share forfeited A/c (400×15)				6,000
	(Being shares of Dhanwani forfeited)


	Share forfeiture A/c [72,000+(400×50)]	Dr.		92,000
	To Capital Reserve A/c				92,000
	(Being balance of forfeiture transferred to Capital reserve)

Question 107:

XYZ Ltd . is registered with an authorised capital of ₹2,00,000 divided into 2,000 shares of ₹100 each of which , 1,000 shares were of fered for public subscription at a premium of ₹5 per share , payable as:

On application	—	₹10 per share,
On allotment	—	₹25 per share (including premium),
On first call	—	₹40 per share
On final call	—	₹30 per share

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹60 per share ₹70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited. (CBSE 2016)

Answer:

Authorised capital 2,000 shares of ₹100 each.

Issued 1,000 shares of ₹100 each at premium of ₹5

Applied 1,800 shares

Allotment made as:		Amount payable per shares as:
Applied	Allotted	Application	₹10
1,500	1,000	Allotment	₹25	(20 + 5)
300	NIL	First Call	₹40
			₹75	Called-up
		Final Call	₹30
1,800	1,000		₹105

Books of XYZ Limited Journal
Date	Particulars		L.F.	Debit Amount ₹	Credit Amount ₹

	Share Application A/c	Dr.		15,000
	To Share Capital A/c				10,000
	To Share Allotment A/c				5,000
	(Share application of 1,000 shares transferred to Share Capital, ₹5,000 adjusted on allotment)

	Share Allotment A/c	Dr.		25,000
	To Share Capital A/c				20,000
	To Securities Premium A/c				5,000
	(Share allotment due on 1,000 shares at ₹25 each including ₹5 premium)

	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First call due on 1,000 shares at ₹40 each)

	Securities Premium A/c	Dr.		500
	Share Capital A/c	Dr.		7,000
	To Share Forfeiture A/c				1,500
	To Share Allotment A/c				2,000
	To Share First Call A/c				4,000
	(100 shares of ₹100 each ₹70 called–up, forfeited for the non-payment of allotment and first call)

	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				1,000
	(100 shares of ₹100 each re-issued at ₹60 per share, ₹70 paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Cash Book
Dr.						Cr.
Date	Particulars	Bank ₹	Date	Particulars	Bank ₹

	Share Application	18,000		Share Application	3,000
	Share Allotment	18,000
	Share First Call	36,000
	Share Capital	6,000		Balance c/d	75,000
		78,000			78,000

Working Notes:

Number of share applied by Sunder	=	1,500×100/1,000
	=	150 shares

Sunder

Money received on application 150 × ₹10	=	1,500
Money transferred to Share Capital 100 × ₹10	=	1,000
Excess Money on application		500

Share allotment due 100 × ₹25	=	2,500
*Less*: Excess money on application	=	500
Calls-in-Arrears on Allotment		2,000

Allotment

Allotment due on all shares 1,000 × ₹25	=	25,000
Less: Adjustment of excess money on application	=	5,000
		20,000
Less: Calls-in-Arrears by Sunder	=	2,000
Money received on allotment	=	18,000

Capital Reserve

Share Forfeiture	Cr.	1,500
Less: Share Forfeiture	Dr.	1,000
Balance in Share Forfeiture after reissue		500

Capital Reserve = Balance in Share Forfeiture after re-issue

= ₹500

Question 108:

Janta Ltd. issued applications for 5,00,000 equity shares of ₹10 each, at a premium of ₹4 per share. The amount was payable as follows:

On application ₹6 (including ₹2 premium), on Allotment 6 (including₹2 premium) and Balance on first and final call.

Applications for 7,50,000 shares were received. Allotment was made to all the applicants on pro rata basis. Mohan to whom 1,000 shares were allotted did not pay allotment and call money. Vikram to whom 500 shares were allotted, did not pay the call money. These shares were forfeited and afterwards reissued @₹8 per share fully paid-up. Pass the necessary Journal entries.

Answer:

Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c (7,50,000×6)	Dr.		45,00,000
	To Share Application A/c				45,00,000
	(Being share application money received)
	Share Application A/c	Dr.		45,00,000
	To Share Capital A/c (5,00,000×4)				20,00,000
	To Securities Premium Reserve A/c(5,00,000×2)				10,00,000
	To Share allotment A/c (2,50,000×6)				15,00,000
	(Being share application money transferred to share capital and Securities Premium Reserve and excess transferred to allotment)
	Share allotment A/c (5,00,000×6)	Dr.		30,00,000
	To Share Capital A/c (5,00,000×4)				20,00,000
	To Securities Premium Reserve A/c (5,00,000×2)				10,00,000
	(Being share allotment money transferred to share capital and Securities Premium Reserve)
	Bank A/c	Dr.		14,97,000
	To Share Allotment A/c				14,97,000
	(Being share allotment money received and except 1,000 shares)

	Or

	Bank A/c	Dr.		14,97,000
	Call-In-Arrears A/c (1,000×6-3000)	Dr.		3,000
	To Share Allotment A/c				15,00,000
	(Being share allotment money received and except 1,000 shares)
	Share Capital A/c (1,500×10)	Dr.		15,000
	Securities Premium Reserve A/c	Dr.		2,000
	(1,000×2)
	To Forfeited Shares A/c (4,000+7,000)				11,000
	To Call-In-Arrears A/c				6,000
	(Being 1,500 shares forfeited)

	Or

	Share Capital A/c (1,500×10)	Dr.		15,000
	Securities Premium Reserve A/c	Dr.		2,000
	(1,000×2)
	To Forfeited Shares A/c (4,000+7,000)				11,000
	To Share Allotment A/c				3,000
	To Share First and Final A/c				3,000
	(Being 1,500 shares forfeited)
	Bank A/c (1,500×8)	Dr.		12,000
	Forfeited Shares A/c (1,500×2)			3,000
	To Share Capital A/c (1,500×10)				15,000
	(Being 1500 shares forfeited reissued at ₹8 as fully paid-up)
	Forfeited Shares A/c	Dr.		8,000
	To Capital Reserve A/c				8,000
	(Being full amount Forfeited on 2,000 Shares reissued, transferred to Capital Reserve)
	(Being Prof it of 1500 shares transferred to capital reserve account)

Ts Grewal Solution 2026-2027

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Class 12 / Volume – 2

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12th | Accounting For Share Capital / Issue of share capital | Question No. 105 To 108 | Ts Grewal Solution 2026-2027

Chapter 1- Company Accounts- Accounting for Share Capital