12th | Accounting for Share Capital | Question No. 1 To 4 | Ts Grewal Solution 2025-2026

Question 1:

Global Trade Ltd. has authorised share capital of ₹1,00,00,000 divided into 1,00,000 Equity Shares of ₹100 each. It has existing issued and paid up capital of ₹25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:

On Application:	₹30
On Allotment:	₹60 and
On Call:	Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants. The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.

Answer:

Balance Sheet of Fancy co. Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	42,50,000
b. Reserves and Surplus	2	5,00,000
Total		47,50,000
II Assets
2. Current Assets
a. Cash and Cash Equivalents	3	47,50,000
Total		47,50,000

Notes to Accounts
Particulars		(₹)
1. Share Capital
Authorised Share Capital
1,00,000 Equity Shares of ₹100 each		1,00,00,000
Issued Share Capital
25,000 Equity Shares of ₹100 each	25,00,000
25,000 Equity Shares of ₹100 each	25,00,000	50,00,000
Subscribed Share Capital
*Fully Called-up & Paid-up Capital*
25,000 Equity Shares of ₹100 each		25,00,000
*Partially Called-up & Paid-up Capital*
25,000 Equity Shares of ₹100 each, 70 called-up		17,50,000
		42,50,000
2. Reserves and Surplus
Securities Premium Reserve (25,000 shares @ ₹20 per share)		5,00,000

3. Cash and Cash Equivalents
Bank		47,50,000

Question 2:

Shri Ganga Ltd. was registered with an authorised capital of ₹7,00,000 divided into Equity Shares of ₹10 each. It offerd to the public for subscription 50,000 equity shares. The amount was payable as follows:

On Application:	₹4 per share
On Allotment:	₹4 per share
On first and final Call:	Balance

The issue was fully subscribed. All amounts were duly received except the first and final call on 4000 shares.

Show the share capital in the balance sheet of company as per schedule III, Part I of Company Act, 2013. Also prepare ‘Notes to account’ for the same.

Answer:

Balance Sheet of Fancy co. Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,92,000

Total		4,92,000
II Assets
2. Current Assets
a. Cash and Cash Equivalents	2	4,92,000
Total		4,92,000

Notes to Accounts
Particulars		(₹)
1. Share Capital
Authorised Share Capital
70,000 Equity Shares of ₹10 each		7,00,000
Issued Share Capital
50,000 Equity Shares of ₹10 each	5,00,000	5,00,000
Subscribed Share Capital
*Fully Called-up & Paid-up Capital*
46,000 Equity Shares of ₹10 each		4,60,000
*Partially Called-up & Paid-up Capita*
4,000 Equity Shares of ₹10 each 40,000
Less: Calls-in- arrears 8,000		32,000
(4,000 @ ₹2 each on first and final call)
		4,92,000

2. Cash and Cash Equivalents
Bank		4,92,000

Question 3:

Sunstar Ltd. has an authorized capital of ₹20,00,000 divided into equity shares of ₹10 each. The company invited applications for issuing 60,000 shares. Applications were received for 58,000 shares.

All calls were made and were duly received except the final call of ₹3 per share on 2,000 shares. These shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the Company as per Schedule III, Part I of the Companies Act, 2013. Also prepare 'Notes to Accounts' for the same.

(CBSE 2023)

Answer:

Balance Sheet of Sunstar Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	5,74,000

Total		5,74,000
II Assets
2. Current Assets
b. Cash and Cash Equivalents	2	5,74,000
Total		5,74,000

	Notes to Accounts
Particulars			(₹)
1. Share Capital
Authorised Share Capital
2,00,000 Equity Shares of ₹10 each			20,00,000
Issued Share Capital			6,00,000
Subscribed Share Capital
*Fully Called-up & Paid-up Capital*
56,000 Equity Shares of ₹10 each			5,60,000
*Partially Called-up & Paid-up Capital*
2,000 Equity Shares of ₹10 each		20,000
Less: Calls-in-arrears (2000×3)		6,000	14,000

			5,74,000

3. Cash and Cash Equivalents
Bank			5,74,000

Question 4:

Star Ltd. is registered with capital of ₹50,00,000 divided into 50,000 equity shares of ₹100 each, The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of ₹20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.

Answer:

In the books of Star Ltd. An Extract of Balance Sheet As at ……….
Particulars	Note No.	(₹)
I. Equity And LiabilitiesShareholders’ Funds
Share Capital	1	23,63,000

Notes to Accounts:
Note No.	Particulars		(₹)
1.	Share Capital
	Authorised Capital
	50,000 equity shares of ₹100 each		50,00,000

	Issued Capital
	25,000 shares of ₹100 each		25,00,000

	Subscribed Capital
	23,750 shares of ₹100 each	23,75,000
	Less: Calls-in-Arrears (600 × 20)	12,000	23,63,000
			23,63,000

Ts Grewal Solution 2025-2026

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Class 12 / Volume – 2

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Chapter 9- Company Accounts- Accounting for Share Capital