12th | Accounting for Share Capital | Question No. 81 To 84 | Ts Grewal Solution 2025-2026

Question 81:

Grofers Ltd. having authorised capital of ₹25,00,000, issued 2,00,000 equity shares of 10 each for subscription payable ₹4 on application, ₹3 on allotment and balance on first and final call. The shares were subscribed, and due amounts were received except first and final call on 4,000 shares held by Rana. These shares were forfeited. Later, half the shares were reissued as fully paid-up and 14,000 were ₹transferred to Capital Reserve. Pass the Journal entry for forfeiture and reissue of shares.

Answer:

Issued and Subscribed Capital 1,00,000 shares of ₹10 each
Payable as:

₹	4	on application
₹	3	on allotment
₹	3	on first and final call
	10

Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c (1,00,000×4)	Dr.		10,00,000
	To Share Application A/c				10,00,000
	(Being share application money received)
	Share Application A/c	Dr.		10,00,000
	To Share Capital A/c				10,00,000
	(Being share application money transferred to share capital )
	Share Allotment A/c (1,00,000×3)	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Being allotment due)
	Bank A/c	Dr.		3,06,000
	To Share Allotment A/c				3,00,000
	To Share First and Final A/c (2,000×3)				6,000
	(Being share allotment money received and along with, Rakesh holding 2,000 shares for First and Final call)
	Share First and Final A/c (1,00,000×3)	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Being first and final call due)
	Bank A/c (94,000×3)	Dr.		2,82,000
	Calls-In-Arrears A/c (4,000×3)			12,000
	To Share First and Final A/c (46,000×3)				2,94,000
	(Being share First and Final money received except 4,000 shares)
	Share Capital A/c (4,000×10)	Dr.		40,000
	To Forfeited Shares A/c (4,000×7)				28,000
	To Calls-In-Arrears A/c (4,000×3)				12,000
	(Being share forfeited for First and Final Calls of 4,000 shares)
	Bank A/c (2,000×10)	Dr.		20,000
	To Share Capital A/c (2,000×10)				20,000
	(Being 2,000 shares forfeited reissued as fully paid-up)
	Forfeited Shares A/c	Dr.		14,000
	To Capital Reserve A/c				14,000
	(Being full amount Forfeited on 2,000 Shares reissued, transferred to Capital Reserve 28,000×2,000÷4,000= 14,000-14,000=Nil)

Question 82:

Software Ltd. company with registered capital of ₹5,00,000 in shares of ₹10 each issued 20,000 of such shares payable ₹2 on application, ₹4 on allotment, ₹2 on first call and ₹2 on final call. AIl the money payable on allotment was received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares did not pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ ₹6 per share as fully paid-up.

Record the above in the company's Journal and prepare the Balance Sheet.

Answer:

On Application:	₹ 2 per share (including premium)
On Allotment:	₹ 4 per share
On first Call:	₹ 2 per share
On final Call:	₹ 2 per share

Books of Software Ltd. Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c	Dr.		40,000
	To Share Application A/c				40,000
	(Share application money received for 20,000 shares at ₹ 2 each)
	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 20,000 shares transferred to Share Capital)
	Share Allotment A/c Dr.			80,000
	To Share Capital A/c				80,000
	(Share allotment due on 20,000 shares at ₹ 4 each)
	Bank A/c Dr.			80,000
	To Share Allotment A/c				80,000
	(Share allotment money received)
	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First and final call due on 20,000 shares at ₹ 2 each)
	Bank A/c	Dr.		38,600
	To Share First Call A/c				38,000
	To Share Final Call A/c				600
	(Share first call money received except Mansi holding 5,000 shares)
	Share Capital A/c (1,000×8) Dr.			8,000
	To Share forfeited A/c (1,000×6)				6,000
	To Share First Call A/c (1,000×2) (Being 1,000 shares forfeited for non-payment of Final Call)				2,000
	Share Final Call A/c Dr.			38,000
	To Share Capital A/c				38,000
	(Final call due on 19,000 shares at ₹ 2 each)
	Bank A/c Dr.			37,400
	To Share First Call A/c				37,400
	(Being share final call money for 19,000 shares received except 300 shares which have already been received)
	Bank A/c (1,000×6) Dr.			6,000
	Share forfeited A/c (1,000×4) Dr.			4,000
	To Share Capital A/c (1,000×10)				10,000
	(Being 1,000 forfeited shares were reissued @ ₹6 per share as fully paid-up)
	Share forfeited A/c Dr.			2,000
	To Capital Reserve A/c				2,000
	( Being balance in the forfeited amount of 1000 shares transfer to capital reserve account)

Amount transferred to Capital reserve Account

= 6,000- 4,000 (Discount on Re-issue) = 2,000

Balance Sheet of Fancy co. Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,00,000
b. Reserves and Surplus	2	2,000
Total		2,02,000
II Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,02,000
Total		2,02,000

Notes to Accounts
Particulars		(₹)
1. Share Capital
Authorised Share Capital
50,000 Shares of ₹ 10 each		5,00,000
Issued Share Capital
20,000 Shares of ₹ 10 each		2,00,000
Subscribed Share Capital
*Fully Called-up & Paid-up Capital*
20,000 Shares of ₹ 10 each		2,00,000
		2,00,000
2. Reserves and Surplus
Capital Reserve		2,000

3. Cash and Cash Equivalents
Bank		2,02,000

Question 83:

A share of ₹100 issued at a premium of ₹10 on which ₹80 (including premium) was called and ₹60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹70 . Give Journal entries to record the above.

Answer:

Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹

	Share Capital A/c (₹80 – 10 premium)	Dr.		70
	To Share Forfeiture (₹60 – 10 premium)				50
	To Calls-In-Arrears A/c				20
	(A share of ₹100 on which ₹70 called excluding the amount of securities premium ₹10, forfeited for non-payment of ₹20)

	Bank A/c	Dr.		70
	Share Forfeiture A/c	Dr.		30
	To Share Capital A/c				100
	(A share of ₹100 re-issued at ₹70 as fully paid-up)

	Share Forfeiture A/c	Dr.		20
	To Capital Reserve A/c				20
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Question 84:

Pass journal entries in the following cases:

NK Ltd forfeited 200 Equity Shares of ₹10 each , issued at a premium of ₹5 per share , held by Ram for non-payment of the final call of ₹3 per share . Of these , 100 shares were reissued to Narender at a discount of ₹4 per share .

Answer:

	Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹

	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c (2,000 × ₹7)				14,000
	To Calls-in-Arrears A/c				6,000
	(2,000 shares of ₹10 each forfeited for the non-payment of ₹3 per share)

	Bank A/c	Dr.		600
	Share Forfeiture A/c (100 × ₹4)	Dr.		400
	To Equity Share Capital A/c				1,000
	(100 shares of ₹10 each reissued at ₹6 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		300
	To Capital Reserve A/c				300
	(Balance in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve )

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	₹7	per share
Share Forfeiture	Dr.	₹4	per share
Balance in share forfeiture after re-issue	Cr.	3	per share

Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued

= Re 3 × 100 shares

= ₹300

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