12th | Accounting For Share Capital / Issue of share capital | Question No. 69 To 72 | Ts Grewal Solution 2026-2027

Question 69:

Alfa Ltd. forfeited 900 Equity Shares of ₹100 each for the non-payment of allotment money of ₹30 per share and the first call of ₹20 per share. The second and final call of ₹25 per share has not been made . The forfeited shares were reissued for ₹90 per share , ₹75 paid-up. Journalise the above.

Answer:

Application	25	Balancing Figure
Allotment	30
First Call	20
Final Call	25	Un-called
	100

Called-up ₹75 per share

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

	Equity Share Capital A/c (900×75)	Dr.		67,500
	To Share Forfeiture A/c				22,500
	To Calls-in-Arrears A/c				45,000
	(900 shares of ₹100 each ₹75 called-up, forfeited for the non-payment sum of allotment ₹30 and first call ₹20 per share)

	Bank A/c	Dr.		81,000
	To Share Capital A/c				67,500
	To Securities Premium A/c				13,500
	(900 shares of ₹100 each re-issued as ₹75 paid-up for ₹90 each)

	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account)

Working Notes-

Share forfeiture account credit	=	Share application money received for 900shares
	=	900×25 ₹.
	=	22,500
Calculation of capital reserve
Share forfeiture account credit	=	22,500
Share forfeiture account debit	=	Nil
Capital reserve	=	22,500

Question 70:

Max Ltd. forfeited 500 shares of ₹100 each for non-payment of first call of ₹20 per share and final call of

₹25 per share. 250 of these shares were re-issued at ₹50 per share fully paid-up.

Pass the necessary Journal entries in the books of Max Ltd. for forfeiture and re-issue of shares. Also prepare

the Share Forfeiture Account. (CBSE 2020)

Answer:

Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹

	Share Capital A/c	Dr.		50,000
	To Share forfeited A/c				27,500
	To Share first call A/c				10,000
	To Share second call A/c				12,500
	(Being 500 shares forfeited for non Payment of first and second Call )
	Bank A/c	Dr.		12,500
	Share forfeited A/c			12,500
	To Share Capital A/c				25,000
	(Being 250 shares issued at 50 per shares)

	Share forfeited A/c	Dr.		1,250
	To Capital Reserve A/c				1,250
	(Being Forfeited amount of 250 re-issued shares)

Question 71:

On 1st May, 2023, Moneyplus Ltd. forfeited 200 shares of ₹20 each, ₹15 per share called-up, on which ₹10 per share has been paid by A, the amount of the first call of ₹5 per share being unpaid. Ten days later, the Directors reissued the forfeited shares to B credited as ₹15 per share paid-up, fora payment of ₹10 per share.

Give Journal entries in the company's books to record the forfeited shares and their reissue.

Answer:

Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹
2023
May 01	Share Capital A/c	Dr.		3,000
	To Share Forfeiture A/c				2,000
	To share first call A/c				1,000
	(200 shares of ₹15 each forfeited for non-payment of first call ₹5 per share)

May 01	Bank A/c	Dr.		2,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				3,000
	(500 shares of ₹10 each re-issued at ₹15 per share fully paid-up)

May 11	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve A/c				1,000
	(Balance in Shares Forfeiture Account of 200 shares re-issue, transferred to Capital Reserve Account)

Working note;

Distribution of amount and no. of installment Application and allotment etc.	=	10
First Call	=	5	200 shares
Second and final call	=	5
Total	=	20
No. of shares forfeited and re-issued=200

Question 72:

The Directors of khyati Ltd resolved on 1st May, 2023 that 2,000 Equity Shares of ₹10 each , ₹7.50 paid be forfeited for non-payment of final call of ₹2.50 . On 10th June, 2023, 1,800 of these shares were reissued for ₹6 per share. Give necessary Journal entries.

Answer:

Books of khyati Ltd. Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹
2023
May 01	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c				15,000
	To Call-in-Arrears A/c				5,000
	(2,000 shares of ₹10 each forfeited for non-payment of final call ₹2.5 per share)

June 10	Bank A/c	Dr.		10,800
	Share Forfeiture A/c	Dr.		7,200
	To Share Capital A/c				18,000
	(1,800 shares of ₹10 each re-issued at ₹6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,300
	To Capital Reserve A/c				6,300
	(Balance in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital Reserve Account)

Working Notes:

Share Forfeiture	7.5	Cr.
Share Forfeiture	4	Dr.
Balance in Share Forfeiture Account after re-issue	3.5	Cr. per share

Capital Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after reissue (per share)

= 1,800 × ₹3.5 (per share)

= ₹6,300

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. 69 To 72 | Ts Grewal Solution 2026-2027

Chapter 1- Company Accounts- Accounting for Share Capital