12th | Accounting For Share Capital / Issue of share capital | Question No. 61 To 64 | Ts Grewal Solution 2026-2027

Question 61:

Vani Limited invited applications for issuing 1.00.000 equity shares of  ₹10 each at a premium of  10%. The amounts were payable as under:

On Application and Allotment ₹4 per share (including premium ₹1)

On First Call ₹4 per share

On Second and Final Call ₹3 per share.

Applications for 1,50,000 shares were received and pro rata allotment was made to all the applicants.

Excess application money was adjusted towards sums due on calls. Parth, a shareholder who had applied for 600 shares did not pay the first call. His shares were forfeited. The second and final call was not yet made. Half of the forfeited shares were reissued at 8 per share fully paid-up.

Journalise the above transactions in the books of  Vani Limited by opening Calls-in-Arrears and Calls-in-Advance Account wherever necessary. (CBSE 2023)

 

Answer:

Issued share capital 1,00,000 shares of  ₹10 each at ₹1 Premium

Subscribed Capital 1,50,000 shares

Payable as:

₹

4

On application and On allotment (Including 1 Premium)

₹

4

On first call

₹

3

On Second call

 

30

 

 

Books of  Vani Limited

Journal

Date

Particulars

L.F.

Debit

 (₹)

Credit

 (₹)

 

 

 

 

 

 

Bank A/c (1,50,000 ×4)

Dr.

 

6,00,000

 

 

To Share Application and allotment A/c

 

 

6,00,000

 

(Share application money received for 1,50,000 shares at₹4 per share)

 

 

 

 

 

 

 

 

 

Share Application and allotment A/c

Dr.

 

6,00,000

 

 

To Share Capital A/c (1,00,000 ×4)

 

 

4,00,000

 

To Securities Premium Reserves A/c

 

 

1,00,000

 

To Call-In-Advance A/c

 

 

1,00,000

 

(Share application Money transferred to Share Capital)

 

 

 

 

 

 

 

 

Share First Call A/c (1,00,000×4)

Dr.

 

4,00,000

 

 

To Share Capital A/c (1,00,000×4)

 

 

4,00,000

 

(Share allotment due on 1,00,000 shares at₹4)

 

 

 

 

Bank A/c

Dr.

 

2,99,200

 

 

Call-In-Advance A/c

Dr.

 

1,00,000

 

 

Calls-In-Arrears A/c

Dr.

 

800

 

 

To Share First Call A/c

 

 

4,00,000

 

(Being amount shares due on First call is received except 400 shares)

 

 

 

 

 

 

 

 

 

Share Capital A/c  (400×7)    Dr.

 

2,800

 

 

  To Forfeited Shares A/c

 

 

2,000

 

  To Calls-In-Arrears A/c

 

 

800

 

(Being share forfeited for non-Payment of  First Call of  400 shares)

 

 

 

 

Bank A/c                   Dr.

 

1,600

 

 

Forfeited Shares A/c              Dr.

 

400

 

 

  To Share Capital A/c 

 

 

2,000

 

(Being shares forfeited reissued)

 

 

 

 

Forfeited Shares A/c              Dr.

 

600

 

 

  To Capital Reserve A/c

 

 

600

 

(being balance in Forfeited Shares account of  reissued shares transferred to Capital Reserve)

 

 

 

 

 

 

 

 

 

Working Notes:

Half of  shares forfeited shares Re-issued

Amount Shares forfeited on 200 share = 2,000×200/400=1,000

Balance in Amount Shares forfeited After Discount, Which is to be transferred to Capital Reserve A/c = 1,000-400=600

 

 

Question 62:

Radhika Ltd. invited applications for issuing 40.000 equity shares of ₹100 each at a premium of ₹50 per share. The amount was payable as follows:

On Application and Allotment

₹40 per share (including ₹10 premium)

On First Call

₹45 per share (including ₹5 premium)

On Second and Final Call

Balance

Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited.

The forfeited shares were reissued thereafter at ₹70 per share fully paid-up. The second and final call was not yet made.

Pass necessary Journal entries for the above transactions in the books of Radhika Ltd.

(CBSE 2025)

Answer:

 

In the Books of Radhika Ltd.

Journal

Date

Particulars

L.F.

Debit

(₹)

Credit

 (₹)

 

Bank A/c (39,000×40)

Dr.

 

15,60,000

 

 

  To Equity Share Application and Allotment A/c

 

15,60,000

 

(Being Application for 39,000 shares were received₹40 per share including ₹10 premium)

 

Equity Share Application and Allotment A/c

Dr.

15,60,000

 

  To Equity Share Capital A/c (39,000×30)

 

11,70,000

  To S.P.R. A/c (39,000×10)

 

3,90,000

 

(Being Application money transferred for 39,000 shares capital and Securities premium)

 

Equity Shares First Call A/c

Dr.

17,55,000

(39,000×45)

 

To Equity Share Capital A/c (39,000×40)

 

15,60,000

To S.P.R. A/c  (39,000×5)

 

1,95,000

(Being Allotment money due on 39,000 shares @ ₹45 per share including ₹5 premium)

 

Bank A/c (39,000-100×45)

Dr.

17,50,500

Calls-in-Arrears A/c (100×45)

Dr.

4,500

To Equity Shares First Call A/c (100×45)

 

17,55,000

 

(Being Allotment money received except from 100 shares of Dinu)

 

Equity Share Capital A/c (100×70)

Dr.

7,000

S.P.R. A/c  (100×5)

Dr.

500

  To Forfeited Shares A/c  (100×30)

 

3,000

  To Calls-in-Arrears A/c  (100×45)

 

4,500

(Being 100 shares of Dinu forfeited for non-payment of First call money)

 

Bank A/c (100×70)

Dr.

7,000

Forfeited Shares A/c (100×30)

Dr.

3,000

To Equity Shares Capital A/c  (100×100)

 

10,000

(Being First Call received except on Dinu's 100 shares)

 

 

 

 Working notes:

 Note: Amount forfeited on shares are equal to discount on re-issued therefore amount to be transferred to capital reserve is Zero (0).

 

Question 63:

Determine the maximum permissible discount and minimum reissue price that a company can allow atthe time of  reissue of  forfeited shares in the following cases:

(i) A share of  ₹10 originally issued at par on which application and allotment money of  ₹5 was received.

(ii) A share of  ₹10 originally issued at a premium of  ₹1 on which application and allotment moneyIncluding premium) of  ₹5 was received.

(iii) A share of  ₹10 originally issued at a premium of  ₹1 on which application and allotment money(Excluding premium) of  ₹5 was received.

 

Answer:

 

Situations

Maximum

Permissible  Discount

Minimum

Reissue price

1

5

5

2

4

6

3

5

5

 

Question 64:

Star Ltd. issued 10,000 shares of  ₹10 each, payable as ₹4 on application, ₹3 on allotment, ₹2 on first call and balance on second and final call.

500 shares were forfeited. Calculate the 'Maximum Permissible Discount' and 'Minimum Reissue Price' on reissue in each of the following cases, if the reissued shares are fully paid-up:

Case 1. If shares were forfeited for non-payment of  Second and Final Call.

Case 2. If shares were forfeited for non-payment of  First Call and Second and Final Call.

Case 3. If shares were forfeited for non-payment of  Allotment, First Call land Second and Final Call.

Case 4. If shares were forfeited for non-payment of  Allotment and First Call. Second and Final Call is not yet made.

 

Answer:

Rule for allowing discount on reissue:

As per Company Act, 2013 (Section 53) Discount on reissue can be given up to the extent of  amount forfeited on re-issued shares.

And Reissue price cannot be less than amount received by company on forfeited shares.

 

Case 1. If shares were forfeited for non-payment of  Second and Final Call.

Maximum Permissible Discount - ₹9

Reason: Discount on reissue can be given up to the extent of  ₹9 forfeited on re-issued shares.

Minimum Reissue Price ₹1;

Reason: Reissue price cannot be than ₹1 received by company on forfeited shares.

 

Case 2. If shares were forfeited for non-payment of  First Call and Second and Final Call.

Maximum Permissible Discount - ₹7.

Reason: Discount on reissue can be given up to the extent of  ₹7 forfeited on re-issued shares.

Minimum Reissue Price - ₹3.

Reason: Reissue price cannot be than ₹3 received by company on forfeited shares.

 

Case 3. If shares were forfeited for non-payment of  Allotment, First Call land Second and Final Call.

Maximum Permissible Discount - ₹4.

Reason: Discount on reissue can be given up to the extent of  ₹4 forfeited on re-issued shares.

Minimum Reissue Price - ₹6.

Reason: Reissue price cannot be than ₹6 received by company on forfeited shares.

 

Case 4. If shares were forfeited for non-payment of  Allotment and First Call. Second and Final Call is not yet made.

Maximum Permissible Discount - ₹4.

Reason: Discount on reissue can be given up to the extent of  ₹4 forfeited on re-issued shares.

Minimum Reissue Price – ₹6

Reason: Reissue price cannot be than ₹6 received by company on forfeited shares.

 

 

Ts Grewal Solution 2026-2027

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Class 12 / Volume – 2

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