12th | Accounting For Share Capital / Issue of share capital | Question No. 13 To 16 | Ts Grewal Solution 2026-2027

Question 13:

Vivan Ltd. invited applications for 10,000 shares of ₹100 each payable as follows:
₹30 on application, ₹30 on allotment,₹20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise these transactions and show share Capital in the balance sheet.

Answer:

Issued and Subscribed Capital 10,000 shares of ₹100 each
Payable as:

₹	30	on application
₹	30	on allotment
₹	20	on first call
₹	20	on final call
	100

Books of Vivan Ltd. Journal
Date	Particulars			L.F.	Debit Amount (₹)	Credit Amount (₹)

	Bank A/c	Dr.			3,00,000
	To Share Application A/c					3,00,000
	(Share application money received for 10,000 shares at ₹30 per share)

	Share Application A/c	Dr.			3,00,000
	To Share Capital A/c					3,00,000
	(Share application of 10,000 shares of ₹20 each transferred to Share Capital)

	Share Allotment A/c	Dr.			3,00,000
	To Share Capital A/c					3,00,000
	(Share allotment due on 10,000 shares at ₹30 per share)

	Bank A/c	Dr.			3,00,000
	To Share Allotment A/c					3,00000
	(Share allotment money received for 10,000 Shares at ₹30 per share)

	Share First Call A/c	Dr.			2,00,000
	To Share Capital A/c					2,00,000
	(Share first call due on 10,000 shares at ₹20 per share)

	Bank A/c	Dr.			2,00,000
	To Share First call A/c					2,00,000
	(Share first call received on 10,000 shares at ₹20 per share)

	Share Final Call A/c		Dr.		2,00,000
	To Share Capital A/c					2,00,000
	(Share Final call due on 10,000 shares at ₹30 per shares)

	Bank A/c		Dr.		2,00,000
	To Share Final Call A/c					2,00,000
	(Share final call received on 10,000 shares at ₹30 per share)

Balance Sheet of Ashok Leather Ltd.
Particulars	Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital		10,00,000
Total		10,00,000

Notes to Accounts
Particulars	(₹)
*Share Capital*
Authorised Share Capital
……. Equity Shares of ₹100 each	-
	-
*Issued Share Capita*l
10,000 Equity Shares of ₹100 each	10,00,000
	10,00,000
*Subscribed Share Capital*
Subscribed and Fully Paid-up Share Capital
10,000 Equity Shares of 100 each	10,00,000
	10,00,000

Question 14:

National Textiles Ltd . was registered with the authorized capital of ₹3,00,000 divided into 3,000 shares of ₹100 each, which were of offered to the public . Amount payable as ₹30 per share on application , ₹40 per share on allotment and ₹30 per share on first and final call . These shares were fully subscribed and all money was dully received. Prepare journal and Cash Book.

Answer:

Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)
	Share Application A/c	Dr.		90,000
	To Share Capital				90,000
	(Share application money transferred)

	Share Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share allotment money transferred)

	Share First and Final Call A/c	Dr.		90,000
	To Share Capital A/c				90,000
	(Share first and final call money transferred)

Cash Book
Dr.			Cr.
Particulars	(₹)	Particulars		(₹)
Share Application A/c	90,000	Balance c/d		3,00,000
Share Allotment A/c	1,20,000
Share First and Final Call A/c	90,000
	3,00,000			3,00,000

Question 15:

Modern Dairies Ltd. was registered with an authorised capital of ₹10,00,000 divided into 7,500 Equity Shares of ₹ 100 each and, 2,500 Preference Shares of ₹100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms – Equity Shares payable ₹10 on application, ₹40 on allotment and the balance in two calls of ₹25 each. Preference Shares are payable ₹25 on application, ₹25 on allotment and ₹50 on first and final call. All the shares were applied for and allotted. Amount due was duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares and show how the Share Capital will appear in the Balance Sheet.

Answer:

Authorised Capital:

Equity Shares 7,500 of ₹100 each.

9% Preference Shares 2,500 of ₹100 each.

Issued Capital:

Equity Shares 1,000 of ₹100 each.

Payable as:

₹10 on Application

₹40 on Allotment

₹25 on First Call

₹25 on Final Call

Preference Shares 500 of ₹100 each.

Payable as:

₹25 on application

₹25 on allotment

₹50 on first and final call

Books of Modern Dairies Limited Cash Book
Dr.							Cr.
Date	Particulars	L.F.	Bank (₹)	Date	Particulars	L.F.	Bank (₹)

	Equity Share Application		10,000
	Preference Share Application		12,500
	Equity Share Allotment		40,000
	Preference Share Allotment		12,500
	Equity Share First Call		25,000
	Preference Share First and Final Call		25,000
	Equity Share Final Call		25,000		Balance c/d		1,50,000

			1,50,000				1,50,000

Journal
	Particulars		L.F.	Debit (₹)	Credit (₹)

	Equity Share Application A/c	Dr.		10,000
	To Equity Share Capital A/c				10,000
	(Equity share application of 1,000 shares of ₹10 each transferred to Equity Share Capital Account)

	Preference Share Application A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share applications of 500 shares ₹25 each transferred to 9% Preference Share Capital Account)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Equity share allotment due on 1,000 shares at ₹40 each)

	Preference Share Allotment A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share allotment due on 500 shares at ₹25 each)

	Equity Share First Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share first call due on 1,000 shares at ₹25 each)

	Preference Share First and Final Call A/c	Dr.		25,000
	To 9% Preference Share Capital A/c				25,000
	(Preference share first and final call due on 500 shares at ₹50 each)

	Equity Share Final Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share final call due on 1,000 shares at ₹25 each)

Balance Sheet
Particulars					Note No.	(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital					1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total						1,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents					2	1,50,000
Total						1,50,000

NOTES TO ACCOUNTS


Note No.	Particulars		(₹)
1	Share Capital
	Authorised Share Capital
	7,500; Equity Shares of ₹100 each	7,50,000
	2,500; 9% Preference Shares of ₹100 each	2,50,000	10,00,000
	Issued Share Capital
	1,000; Equity Shares of ₹100 each	1,00,000
	500; 9% Preference Shares of ₹100 each	50,000	1,50,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000; Equity Shares of ₹100 each	1,00,000
	500; 9% Preference Shares of ₹100 each	50,000	1,50,000

2	Cash and Cash Equivalents
	Cash at Bank		1,50,000

Question 16:

Premio Ltd. issued 50,000 Equity Shares of ₹100 each at a premium of ₹50 per share, payable as follows:
₹100 per share on application; and

Balance on Allotment.
The issue was subscribed and shares were issued to the applicants. Pass the necessary Journal entries.

Answer:

Books of Premio Limited Journal
Date	Particulars		L.F.	Debit (₹)	Credit (₹)

	Bank A/c	Dr.		50,00,000
	To Share Application A/c				50,00,000
	(Application money received for 50,000 shares at ₹5 per shares)

	Share Application A/c	Dr.		50,00,000
	To Share Capital A/c				50,00,000
	(Application money of 50,000 share transferred to Share Capital at ₹100 per share)

	Share Allotment A/c	Dr.		25,00,000
	To Securities Premium A/c				25,00,000
	(Share allotment due on 50,000 shares ₹50 securities premium)

	Bank A/c	Dr.		25,00,000
	To Share Allotment A/c				25,00,000
	(Share Allotment money received)

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. 13 To 16 | Ts Grewal Solution 2026-2027

Chapter 1- Company Accounts- Accounting for Share Capital