12th | Accounting for Share Capital | Question No. 97 To 100 | Ts Grewal Solution 2025-2026

Question 97:

Abhipra Ltd. invited applications for issuing 1,00,000 equity shares of ₹10 each. The shares were issued at a premium of ₹20 per share. The amount was payable as follows:

On Application ₹14 per share (including premium of ₹10),

On Allotment ₹8 per share (including premium of ₹5)

On First and Final Call ₹8 per share (including premium of ₹5).

Applications for 90,000 shares were received. Paresh, a shareholder holding 5,000 shares, did not pay the allotment money and call. While Dharam, holder of 3,000 shares, did not pay the call. Shares of Paresh and Dharam were forfeited. Of the forfeited shares, 5,000 shares including 3,000 shares of Paresh and 2,000 shares of Dharam were reissued to Parul at 8 per share as fully paid-up.

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

Answer:

Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Bank A/c (90,000×14)	Dr.		12,60,000
	To Share Application A/c				12,60,000
	(Being share application money received)
	Share Application A/c (90,000×14)	Dr.		12,60,000
	To Share Capital A/c (90,000×4)				3,60,000
	To Securities Premium Reserve A/c (90,000×10)				9,00,000
	(Being share application money transferred to share capital and Securities Premium Reserve)
	Share allotment A/c (90,000×8)	Dr.		7,20,000
	To Share Capital A/c (90,000×3)				2,70,000
	To Securities Premium Reserve A/c (90,000×5)				4,50,000
	(Being share allotment money transferred to share capital and Securities Premium Reserve)
	Bank A/c (85,000×8)	Dr.		6,80,000
	To Share Allotment A/c				6,80,000
	(Being share allotment money received and except 5,000 shares)
	Share First and Final Call A/c (90,000×8)	Dr.		7,20,000
	To Share Capital A/c (90,000×3)				2,70,000
	To Securities Premium Reserve A/c (90,000×5)				4,50,000
	(Being share First and Final Call money transferred to share capital and Securities Premium Reserve)
	(Being first and final call due)
	Bank A/c [(90,000-8,000) ×3]	Dr.		6,56,000
	To Share First and Final A/c				6,56,000
	(Being share First and Final money received except [5,000+3,000] 8,000 shares)
	Share Capital A/c (8,000×10)	Dr.		80,000
	Securities Premium Reserve A/c	Dr.		65,000
	(5,000×10+3,000×5)
	To Forfeited Shares A/c (4,000×7)				41,000
	To Share Allotment A/c				40,000
	To Share First and Final A/c				64,000
	(Being share forfeited for allotment and First and Final Calls of 5,000 shares and for First and Final Calls of 3,000 shares)
	Bank A/c (5,000×8)	Dr.		40,000
	Forfeited Shares A/c (5,000×2)			10,000
	To Share Capital A/c (5,000×10)				50,000
	(Being 5,000 shares forfeited reissued at ₹8 as fully paid-up)
	Forfeited Shares A/c	Dr.		16,000
	To Capital Reserve A/c				16,000
	(Being full amount Forfeited on 2,000 Shares reissued, transferred to Capital Reserve)

Working notes:

Forfeited amount of Paresh 3,000 shares 20,000÷5,000×3,000= 12,000

Forfeited amount of Parul 2,000 shares 21,000÷3,000×2,000= 14,000

Total Forfeited amount = 12,000+14,000=26,000

Amount to be transferred to capital reserve = Total Forfeited amount – Discount on reissue

16,000= 26,000-10,000

Determination of Amount Realised from Reissue of Shares

Question 98:

"Ratan Ltd.' forfeited 1,000 shares of 10 each for non-payment of first and final call of ? 2 per share. These shares were reissued and gain on reissue transferred to Capital Reserve was 5,000. Determine the amount realised from reissue of shares. [Ans.: Amount realised from reissue of shares* 7,000.]

Answer:

Amount forfeited on 1,000 shares par shares is ₹8 = ₹8,000

Amount transferred to capital reserve = ₹5,000

Face value of all reissued shares = ₹10,000 (1,000×₹10)

Amount of discount = ₹8,000 - ₹5,000 = ₹3,000

Therefore, amount realized from reissue of shares = ₹10,000 - ₹3,000 = ₹7,000

Reissue price par share = ₹7,000 ÷ 1,000 = ₹7

Question 99:

"Swasth Ltd.'forfeited 2,000 shares of 10 each for non-payment of final call of 3 per share. 1,500 of these shares were reissued and gain on reissue transferred to Capital Reserve was? 7,500. Determine the amount realised from reissue of shares.

Answer:

Amount forfeited on 2,000 shares par shares is ₹7 = ₹14,000

Amount transferred to capital reserve of 1500 shares = 14,000×1,500÷2,000 =₹10,500

Face value of all reissued shares = ₹10,000 (2,000×₹10)

Total Amount of discount = ₹10,500 - ₹7,500 = ₹3,000

Discount per share= ₹3,000÷1,500= ₹2

Therefore, amount realized from reissue of shares = ₹15,000 - ₹3,000 = ₹12,000

Reissue price par share = ₹12,000 ÷ 1,000 = ₹12

Forfeiture and Reissued of Shares which were Allotted on Pro rata

Question 100:

Arvind Ltd. issued 20,000 shares of ₹10 each at a premium of ₹2 per share payable as:

On Application ₹6

On Allotment ₹3 (including premium)

On First Call ₹2

On Second and Final Call- ₹1

Applications were received for 30,000 shares. Applications for 6,000 shares were rejected and pro rata allotment was made to the remaining applicants.

Abhay, who was allotted 500 shares failed to pay allotment money and on his subsequent failure to pay the first call his shares were forfeited. Of these, 300 shares were reissued as fully paid-up for ₹6 per share.

Journalise the transactions to record the forfeiture and reissue of shares.

Answer:

Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Share Capital A/c (500×9)	Dr.		4,500
	Securities Premium Reserve A/c	Dr.		900

	To Forfeited Shares A/c (600×6-100)				3,500
	To Share Allotment A/c				900
	(1,500-600 already paid=900)
	To Share First and Final A/c (500×2)				1,000
	(Being share forfeited for allotment and First and Final Calls of 500 shares)
	Bank A/c (300×6)	Dr.		1,800
	Forfeited Shares A/c (300×4)			1,200
	To Share Capital A/c (300×10)				3,000
	(Being 300 shares forfeited reissued at ₹6 as fully paid-up)
	Forfeited Shares A/c	Dr.		900
	To Capital Reserve A/c				900
	(Being full amount Forfeited on 300 Shares reissued, transferred to Capital Reserve)

Working Note:

Abhay, who was allotted500 shares

And applied 500×20,000÷30,000=600

Money receive on application from abhay = 600×6=3,600

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