12th | Accounting for Share Capital | Question No. 25 To 28 | Ts Grewal Solution 2025-2026

Question 25:

Sugandh Ltd. issued 60,000 shares of ₹10 each at a premium of ₹2 per share payable as ₹3 on application, ₹5 (including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:

(i)	Applicants of 40,000 shares	30,000 shares,
(ii)	Applicants of 50,000 shares	30,000 shares,
(iii)	Applicants of 2,000 shares	Nil.

Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.

Answer:

Issued Shares	60,000
Less: Applied Shares	92,000
Over-subscribed Shares	32,000

Payable as:

₹	3	on Application
₹	5	on Allotment (Including ₹2 premium)
₹	4	on First and Final Call
₹	12	(10 + 2)

Applied		Allotted	Money Received on Application @ ₹3	Money adjusted on Appliction @ ₹3	Excess	Allotment due @ ₹5	Excess money adjusted on Allotment @ ₹5
40,000		30,000	1,20,000	90,000	30,000	1,50,000	30,000
50,000		30,000	1,50,000	90,000	60,000	1,50,000	60,000
2,000		NIL	6,000	–	6,000
					(Bank)
92,000		60,000	2,76,000	1,80,000		3,00,000	90,000

Calls-in-Arrears by Mohan

Number of shares allotted to Mohan=30,000/40,000×800= 600 shares

Money Received on Application 800×3	=	2,400
Application money adjusted to Share Capital 600×3	=	1,800
Execs Money on Application	=	600

Allotment due on 600 shares × ₹5	=	3,000
Less: Adjustment of excess money on application	=	600
Calls-in-Arrears by Mohan		2,400

Calls-in-Arrears by Sohan

Number of shares allotted to Sohan=50,000/30,000×600= 1000 shares

Money received on Application 1,000×3	=	3,000
Application money adjusted to Share Capital 600×3	=	1,800
Excess money on application	=	1,200

Allotment due on 600 Shares × ₹5	=	3,000
Less: Adjustment of excess money on application	=	1,200
Calls-in-Arrears by Sohan	=	1,800
Money received on allotment
Allotment due on 60,000 shares × ₹5	=	3,00,000
Less: Excess Application money adjusted on Allotment	=	90,000
		2,10,000
Less: Calls-in-Arrears by Mohan	=	2,400
Less: Calls-in-Arrears by Sohan	=	1,800
Money received on allotment	=	2,05,800

Question 26:

Printkit Limited invited applications for issue of 80,000 equity shares of ₹10 each. The amount was payable as follows:

On Application ₹3 per share

On Allotment ₹2 per share

On First and Final call Balance

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants on the following basis:

Category A- Applicants for 80,000 shares were allotted 40,000 shares.

Category B- Applicants for 60,000 shares were allotted 40,000 shares.

Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received.

Pass necessary Journal entries in the books of Printkit Limited. (CBSE 2024)

Answer:

Books of Tiny Printkit Limited Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c	Dr.		4,50,000
	To Share Application A/c				4,50,000
	(Share application money received for 1,50,000 shares at ₹3 each)
	Share Application A/c	Dr.		4,50,000
	To Share Capital A/c				2,40,000
	To Share Allotment A/c				1,40,000
	To Share First and Final Call A/c				40,000
	To Bank A/c				30,000
	(Share application of 80,000 shares transferred to Share Capital out of share applied 1,50,000 shares, and excess application money adjusted on allotment, First and Final Call and remaining amount returned)
	Share Allotment A/c Dr.			1,60,000
	To Share Capital A/c				1,60,000
	(Share allotment due on 80,000 shares at ₹2 each)
	Bank A/c Dr.			20,000
	To Share Allotment A/c				20,000
	(Share allotment money received)
	Share First and Final Call A/c	Dr.		4,00,000
	To Share Capital A/c				4,00,000
	(First and final call due on 80,000 shares at ₹5 each)
	Bank A/c	Dr.		3,60,000
	To Share First and Final Call A/c				3,60,000
	(Share first and final call money received)

Working Notes:

Applied Shares	Allotted Shares	Money received on Application @ ₹3 each	Money transferred to Share Capital @ ₹3 each	Excess	Excess money adjusted on Allotment	Excess money adjusted on First and Final Call	Excess money after Allotment
80,000	40,000	2,40,000 (80,000×3)	1,20,000 (40,000×3)	1,20,000 (40,000×3)	80,000 (40,000×2)	40,000	-
60,000	40,000	1,80,000 (60,000×3)	1,20,000 (40,000×3)	60,000 (20,000×3)	60,000 (40,000×2)	-	-
10,000	Nil	30,000 (10,000×3)	Nil	30,000	-	-	30,000
1,50,000	80,000	4,50,000 (1,50,000×3)	2,40,000 (80,000×3)		1,40,000	40,000	30,000

Question 27:

Eastern Company Limited , having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each , issued 50,000 shares at a premium of ₹ 3 per share payable as follows:

On Application

₹ 3 per share;

On Allotment (including premium)

₹ 5 per share;

On first call (due three months after allotment)

and the balance as when required.

₹ 3 per share;

Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment, excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.

(NCERT, Modified)

Answer:

Books of Eastern Company Limited
Date	Particulars		L.F.	Debit ( ₹)	Credit ( ₹)
	Bank A/c To Share Application a/c (share application money received)	Dr.		1,80,000	1,80,000
	Share Application A/c	Dr.		1,80,000
	To Share Capital A/c				1,50,000
	To Share Allotment A/c To Bank A/c				27,000 3,000
	(Share Application money for 50,000 shares transferred To Share Capital Account and the excess money transferred To Share Allotment Account)

	Share Allotment A/c	Dr.		2,50,000
	To Share Capital A/c				1,00,000
	To Share Premium A/c				1,50,000
	(Allotment money due on 50,000 shares @ ₹5 per share including ₹3 security premium)
	Bank A/c (2,50,000-27,000) Dr. To Share Allotment A/c (Share allotment money received)			2,23,000	2,23,000
	Share First Call A/c	Dr.		1,50,000
	To Share Capital A/c				1,50,000
	(First call due on 50,000 shares @ ₹3 per share)
	Bank A/c (1,50,000-[100×3]) To Share First Call A/c (Amount received on first call except 100 shares)	Dr.		1,49,700	1,49,700

Cash Book (Bank Column)
Dr.							Cr.
Date	Particulars	J.F.	( ₹)	Date	Particulars	J.F.	( ₹)
	Share Application		1,80,000		Share Application		3,000
	Share Allotment		2,23,000		Balance c/d		5,49,700
	Share First Call		1,49,700
			5,49,700				5,49,700

Eastern Company Limited
Balance Sheet
Particulars	Note No.	( ₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,99,700
b. Reserves and Surplus	2	1,50,000
2. Non–Current Liabilities
3. Current Liabilities
Total		5,49,700
II. Assets
1. Non–Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	5,49,700
Total		5,49,700

NOTES TO ACCOUNTS

Note No.	Particulars		( ₹)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of ₹ 10 each		10,00,000
	Issued Share Capital
	50,000 shares of ₹ 10 each		5,00,000
	Subscribed, Called up and Paid up Share Capital
	50,000 shares of ₹ 10 each, ₹ 8 called–up	4,00,000
	Less: Calls–in–Arrears	(300)	3,99,700
2	Reserves and Surplus
	Securities Premium		1,50,000

3	Cash and Cash Equivalents
	Cash at Bank		5,49,700

Table Adjusting Application money

Shares allotted	Shares applied	Application money receive	Share Capital	Share Allotment	Refund
40,000	40,000	1,20,000	1,20,000	-	-
15,000	8,000	45,000	24,000	21,000	-
5,000	2,000	15,000	6,000	6,000	3,000
60,000	50,000	1,80,000	1,50,000	27,000	3,000

Question 28:

A-one Product Ltd. is registered with authorised capital of ₹10,00,000 divided into 50,000 equity shares of ₹20 each. It issued 25,000 Equity Shares for subscription at premium of ₹2 per share, issue price being payable along with application. It received ₹5,17,000 towards application money.

You are required to prepare the Balance Sheet showing Share Capital.

Answer:

Balance Sheet of A-One Product Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	4,70,000
Reserve and Surplus	2	47,000
Total		5,17,000

Notes to Accounts
Particulars	(₹)
1. Share Capital
Authorised Share Capital
50,000 Equity Shares of ₹20 each	10,00,000

	10,00,000
*Issued Share Capita*l
25,000 Equity Shares of ₹20 each	5,00,000
	5,00,000
*Subscribed Share Capital*
Subscribed and Fully Paid-up Share Capital
23,500 Equity Shares of 20 each	4,70,000
	4,70,000
2. Reserve and Surplus
Securities Premium Reserve (23,500×2)	47,000
	47,000

Working Notes:

Issue Price 20+2=₹22

Application Money Received =5,17,000

Hence, no. of shares issued = 5,17,000÷22=23,500

Ts Grewal Solution 2025-2026

Click below for more Questions

Class 12 / Volume – 2

commercemine

Chapter 9- Company Accounts- Accounting for Share Capital