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T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Accounting for Share Capital

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T.S. Grewal T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2

T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2 - Shaalaa.com

Chapter 1: Accounting for Share Capital

Exercise

Chapter 1: Accounting for Share Capital Exercise Exercise solutions [Pages 113 - 130]

Exercise | Q 1 | Page 113

Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹  100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹  20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.

Exercise | Q 2 | Page 114

Himmat Ltd has authorised share capital of ₹  50,00,000 divided into 5,00,000 Equity Shares of ₹  10 each .  It has existing issued and paid up capital of ₹  5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

 On Application:     ₹ 3
 On Allotment:    ₹ 4 and
 On Call:    Balance Amount.

The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.

Exercise | Q 3 | Page 114

Lennova 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.

Exercise | Q 4 | Page 114

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.

Exercise | Q 5 | Page 114

Moneyplus company issued 2,50,000 Equity Shares of ₹ 10 each to public. All amounts have been received in lump sum.Pass necessary Journal entries in the books of the company.

Exercise | Q 6 | Page 114

The authorised capital of ₹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.

Exercise | Q 7 | Page 114

Hema Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:
₹  20 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.

Exercise | Q 8 | Page 114

Marigold Ltd . was registered with the authorized capital of ₹ 3,00,000 divided into 3,000 shares of ₹ 100 each, which were 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.

Exercise | Q 9 | Page 114

Modern Marbles 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.

Exercise | Q 10 | Page 115

Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.

Exercise | Q 11 | Page 115

Seema Ltd. offered for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company's Journal, Cash Book  and the ledger. Also show the company's Balance Sheet on completion of the above transactions.

Exercise | Q 12 | Page 115

Bharat Ltd. was incorporated with a capital of ₹ 2,00,000 divided into shares of ₹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.

Exercise | Q 13 | Page 115

Authorized capital of Suhani Ltd . is ₹ 45,00,000 divided into 30,000 shares of ₹ 150 each . Out of these  company issued 15,000 shares of ₹ 150 each at a premium of ₹ 10 per share . the amount was payable as follows:
₹ 50 per share on application , ₹ 40 per share on allotment (including premium ), ₹ 30 per share on firs t call and balance on final call . Public applied for 14,000 shares.  All the money was duly received .
Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III , Part I of the companies Act, 2013 disclosing the above information . Also prepare 'Notes to Accounts ' for the same.

Exercise | Q 14 | Page 115

A company invited applications for 75,000 equity shares of ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.

Exercise | Q 15 | Page 115

Sangam Ltd. invited applications for 10,000 Equity Shares of ₹ 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries. 

Exercise | Q 16 | Page 115

Citizen Watches Ltd. invited applications for 50,000 shares of ₹ 10 each payable ₹ 3 on application , ₹ 4 on allotment and balance  on first  and final call . Applications were received for 60,000 shares . Applications were accepted for 50,000 shares and remaining applications were rejected . All calls were made and received except First and Final call on 500 shares .
Pass the journal entries in the books of Citizen Watches Ltd .

Exercise | Q 17 | Page 115

Arti Ltd. offered for subscription 20,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. Applications were received  for 30,000 shares. Letters of regret were issued to applicants for 5,000 shares and their application money was refunded. Application money for other 5,000 shares was applied towards the payment for allotment money. The balance of allotment money was also received in due time. Company didn't make first and final call.
You are to prepare the Journal, Cash Book, Ledger Accounts and show 'Share Capital' in the Balance Sheet of the company. 

Exercise | Q 18 | Page 115

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.

Exercise | Q 19 | Page 116

Varun Ltd. issued ₹ 10,00,000 shares of ₹ 100 each at a premium of ₹ 20 for subscription payable as:

₹ 10 per share on application,
₹ 40 per share and ₹ 10 premium on allotment, and
₹ 50 per share and ₹ 10 premium on final payment.

Over-payments on application were to be applied towards amount due on allotment and over-payments on application exceeding amount due on allotment was to be returned. Issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received.
Pass necessary entries in the company's books to record the above transactions. Also, prepare company's Balance Sheet on completion of the above transactions.

Exercise | Q 20 | Page 116

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.

Exercise | Q 21 | Page 116

Sony Media Ltd.issued 50,000 shares  of ₹ 10 each payable  ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .

Exercise | Q 22 | Page 116

The Kalyan Cotton Mills Ltd.was registered on 1st January,2011 with a capital of ₹10,00,000 divided into 1,00,000 shares of ₹ 10 each . The company issued 42,000 shares of which 40,000 shares were taken up by the public and ₹ 1 per share was received with application. On 1st February , these shares were allotted and ₹ 2 per share was duly received on 28th February as allotment money. A first call of ₹ 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received . The final call of ₹ 4 per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass necessary journal ands Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.

Exercise | Q 23 | Page 117

Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ ₹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.

Exercise | Q 24 | Page 117

Star Ltd was registered with a capital of ₹ 5,00,000 in shares of ₹ 10 each and issued 20,000 such shares at a premium of ₹ 2 per share, payable as ₹ 2 per share on application, ₹ 5 per share on allotment (including premium) and ₹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Pass journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.

Exercise | Q 25 | Page 117

Green Ltd. issued 8,000 Equity Shares of ₹ 10 each. ₹ 5 per share was called, payable ₹ 2 on application, ₹ 1 on allotment , ₹ 1 on first call and ₹ 1 on second call. All the money was duly received with the following exceptions:
   A who holds 250 shares paid nothing after application.
   B who holds 500 shares paid nothing after allotment.
   C who holds 1,250 shares paid nothing after first call.
Prepare Journal and the Balance Sheet. 

Exercise | Q 26 | Page 117

Bharat Ltd made the first call of ₹ 2 per share on its 1,00,000 Equity Shares on 1st March , 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was ₹ 3 per share. Pass necessary journal entries for recording  the above using the Calls-in Advance Account.

Exercise | Q 27 | Page 117

2,000 Equity Shares of ₹ 10 each  were issued to  Limited  from whom assets of ₹ 25,000 were acquired .
Pass Journal entry.

Exercise | Q 28 | Page 117

'Amrit Dhara Ltd.' issued 800 Equity Shares of ₹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of ₹ 1,00,000.
Pass entries in company's Journal.

Exercise | Q 29 | Page 117

Rajan Ltd . purchased assets from Geeta & Co . for ₹ 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of ₹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.

Exercise | Q 30 | Page 117

Z Ltd . purchased furniture costing ₹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹ 100 each  ata  premium of ₹ 10 per share . Pass necessary Journal entries in the books of Z Ltd. 

Exercise | Q 31 | Page 117

Goodluck Ltd purchased  machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.

Exercise | Q 32 | Page 118

Jain Ltd  purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50% , the company issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries  in the books of Jain Ltd . for the above transaction.

Exercise | Q 33 | Page 118

Sona Ltd.  purchased machinery costing ₹ 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries for the above transactions in the books of Sona Ltd .Show your working notes clearly.

Exercise | Q 34 | Page 118

Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of ₹ 10 each  credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.

Exercise | Q 35 | Page 118

Bharat Lamp Ltd. issued 30,000 fully paid-up shares of  ₹ 100 each for purchase of the following assets and liabilities from Sharma & Co: 

Plant ₹ 7,00,000 Stock-in-Trade  ₹ 9,00,000
Land and Building   ₹ 12,00,000 Sundry Creditors   ₹ 2,00,000

You are required to pass necessary Journal entries.

Exercise | Q 36 | Page 118

Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each  and balance through cheque.
The  assets and liabilities consisted of the following:

  Plant and Machinery   ₹ 4,00,000   Stock   ₹ 4,00,000
  Building   ₹ 4,00,000   Cash   ₹ 3,00,000
  Sundry Debtors   ₹ 3,00,000   Sundry Creditors   ₹ 2,00,000

You are required to pass necessary Journal entries in the company's books.

Exercise | Q 37 | Page 118

Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of   ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of  ₹ 4,59,500.  ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of  ₹ 10 each at a premium of 10% in favour of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

Exercise | Q 38 | Page 118

Better Prospect Ltd. acquired land costing  ₹ 1,00,000 and in payment allotted 1,000 Equity Shares of  ₹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as:  ₹ 30 on application ;  ₹ 30 on allotment;  ₹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company. 

Exercise | Q 39 | Page 118

Alankrit Ltd. purchased machinery of ₹ 10,00,000 from Grand Iron Works Ltd. and paid as follows:
(a) Issued 50,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.
(b) Gave an acceptance of ₹ 3,00,000 payable after 3 months; and
(c) Balance by issuing post-dated cheque of two months of ₹ 1,00,000.
Pass the Journal entries in the books of Alankrit Ltd. and Grand Iron Works Ltd.

Exercise | Q 40 | Page 119

Alpha Ltd. issued 20,000 Equity Shares of  ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary  Journal entry relating to the forfeiture of shares in each of the following alternative cases:

Case I If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited.
Case II If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Case III If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited
Exercise | Q 41 | Page 119

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

On Application : ₹ 3
On Allotment : ₹ 5 (including premium)
On First Call : ₹ 2
On Second and Final Call : ₹ 2

Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.

Case I Vijay did not pay allotment money and his shares were immediately forfeited.
Case II Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case III Vijay failed to pay first call and his shares were forfeited immediately.
Case IV Vijay failed to pay both the calls and his shares were forfeited.
Exercise | Q 42 | Page 119

U.P. Sugar Works Ltd. was registered on 1st January, 2019 with an authorised capital of ₹ 15,00,000 divided into 15,000 shares of ₹ 100 each. The company issued on 1st April, 2019, 5,000 shares of ₹ 100 each at a premium of ₹ 5 per share payable ₹ 25 per share on application , ₹ 30 (including premium) on allotment and the balance in two equal installments of ₹ 25 each on 1st July and 1st October respectively. All the allotments and call moneys were paid when due, except in case of one shareholder who failed to pay the final call on 100 shares held by him. His shares were forfeited on 1st November after giving him a due notice. Show necessary entries in the books of the company to record these transactions.

Exercise | Q 43 | Page 120

Black Stone Ltd. issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary Journal entries to record the above.

Exercise | Q 44 | Page 120

A  company issued 10,000 shares of the value of  ₹ 10 each , payable  ₹ 3 on application, ₹ 3 on allotment and ₹ 4 on the first and final call . All amounts are duly received except the call money on 100 shares . These shares are subsequently forfeited by Directors and are resold as fully paid-up for ₹ 500 .
Give necessary journal entries for the transactions.

Exercise | Q 45 | Page 120

X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made . The forfeited shares were reissued for ₹ 90 per share , ₹ 75 paid-up. Journalise the above. 

Exercise | Q 46 | Page 120

The Directors of M Ltd  resolved on 1st May, 2015 that 2,000 Equity Shares of ₹ 10 each , ₹ 7.50 paid be  forfeited for non-payment of final call of ₹ 2.50 . On 10th June, 2015, 1,800 of these shares were reissued for ₹ 6 per share . Give necessary Journal entries . 

Exercise | Q 47 | Page 120

Super Star Ltd. makes an issue of 10,000 Equity Shares of ₹ 100 each, payable as:

 On application and allotment  ₹ 50 per share,
 On first call  ₹ 25 per share,
 On second and final call  ₹ 25 per share.

Members holding 400 shares did not pay the second and final call and the shares are duly forfeited, 200 of which are reissued as fully paid-up @₹ 50 per share. Pass journal entries in the books of the company.

Exercise | Q 48 | Page 120

Sunshine Ltd. issued 20,000 shares of ₹ 100 each payable ₹ 25 per share on application , ₹ 25 per share on allotment and the balance in two calls of  ₹ 25 each. The company did not make the final call of ₹ 25 per share. All the money was duly received with the exception of the amount due on the first call on 400 shares held by Mr. Modi. The Board of Directors forfeited these shares and subsequently reissued them @ ₹ 75 per share paid-up for a sum of ₹ 28,000.
Journalise the above transactions and prepare Share Capital Account.

Exercise | Q 49 | Page 120

The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect  of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share . 
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the  company. 

Exercise | Q 50 | Page 120

On 1st May,2014, Directors of a Limited Company forfeited 200 shares of ₹ 20 each , ₹ 15 per share called-up, on which ₹ 10 per share has been paid by A , the amount of the first call of ₹ 5 per share being unpaid . Ten days Later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up , for a payment of ₹ 10 per share.
Give journal entries in the company's books to record the forfeited shares and their reissue. 

Exercise | Q 51 | Page 121

X Ltd . forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Mr. R, on which he had paid applications money of ₹ 5 per share , for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as ₹ 8 called-up for ₹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares. 

Exercise | Q 52 | Page 121

Bee Ltd. Company forfeited 100 Equity Shares of the face value of ₹ 10 each, ₹ 6 per share called-up, for non-payment of first call of ₹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ ₹ 7 each.
Give necessary entries in the company's Journal.

Exercise | Q 53 | Page 121

Give necessary journal entries:

(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment          of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.

(ii) Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share . Out             of these , 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.

Exercise | Q 54 | Page 121

Show the forfeiture and reissue entries under each of the following cases:

(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr.  A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.

(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of ₹ 4 per share. These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.

(iii) Light Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment money of  ₹ 3 per share and first and final call money of ₹ 4 per share. These shares were reissued @ ₹ 8 per share as fully paid-up to Mr. P. 

Exercise | Q 55 | Page 121

Record the journal entries for forfeiture and reissue of shares in the following cases:

(i) Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per share.

(ii) Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium of ₹ 2 per share to 'R' for non-payment  of allotment money of ₹ 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as ₹ 8 called-up for ₹ 10 per share. 

Exercise | Q 56 | Page 121

Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share . The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.

Exercise | Q 57 | Page 121

A holds 100 shares of ₹ 10 each on which he has paid ₹ 1 per share on application.
B holds 200 shares of ₹ 10 each on which he has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.
C holds 300 shares of ₹ 10 each and has paid ₹ 1 on application, ₹ 2 on allotment and ₹ 3 on first call. They all fail to pay their arrears and the second call of ₹ 2 per share . Shares are forfeited and subsequently reissued @ ₹ 11 per share as fully paid-up.
journalise the above. 

Exercise | Q 58 | Page 121

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 ₹ 2 on final call. All the money payable on allotment was duly 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 failed to 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. 

Exercise | Q 59 | Page 122

New Company Ltd. has a nominal capital of ₹ 2,50,000 in shares of ₹ 10. Of these, 4,000 shares were issued as fully paid in payment of building purchased , 8,000 shares were subscribed by the public and during the first year ₹ 5 per share were called-up, payable ₹ 2 on application , ₹ 1 on allotment, ₹ 1 on first call and ₹ 1 on second call . The amounts received in respect of these shares were:

 On 6,000 shares  Full amount called,
 On 1,250 shares  ₹ 4 per share,
 On 500 shares  ₹ 3 per share,
 On 250 shares  ₹ 2 per share.

The Directors forfeited the 750 shares on which less than ₹ 4 had been paid . The shares were subsequently reissued at ₹ 3 per share .
Pass journal entries recording the above transactions and prepare the company's Balance Sheet.

Exercise | Q 60 | Page 122

Slow & Steady Ltd. invited  applications for 10,000 Equity Shares of ₹ 10 each for public subscription. The amount of these shares was payable as:
On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.
All sums payable on application, allotment and calls were duly received with the following exceptions: 
(i)   A, who held 200 shares, failed to pay the money on allotments and calls.
(ii)  B, to whom 150 shares were allotted, failed to pay the money on first call and final call.
(iii) C, who held 50 shares, did not pay the amount of second and final call.
The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.
Pass necessary Journal entries to record these transactions in the books of X Ltd. 

Exercise | Q 61 | Page 122

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.

Exercise | Q 62 | Page 122

Pass journal entries in the following cases:
M 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 Vishu at a discount of   ₹ 4 per share . 

Exercise | Q 63 | Page 122

VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares  were reissued to Narendra at a discount  of ₹ 4 per share . Journalise.

Exercise | Q 64 | Page 122

The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share , for the non-payment of the first call money of ₹ 2 per share . The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal  entries for the forfeiture and reissue of shares.

Exercise | Q 65 | Page 123

JCV Ltd., forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 2 per share for the non-payment of allotment money of ₹ 3 per share (including premium). The first and final call of  ₹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at ₹ 8 per share  as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares. 

Exercise | Q 66 | Page 123

Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.

Exercise | Q 67 | Page 123

150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above.

Exercise | Q 68 | Page 123

Commence Publications Ltd. issued 50,000 Equity Shares of ₹ 10 each at a premium of 10% payable as under:

 On application  ₹ 2, On first call  ₹ 2,
 On allotment  ₹ 5, On final call  ₹ 2.

The calls were made by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore, forfeited and later reissued @ ₹ 9 per share as fully paid-up.
Pass necessary journal entries to record the above transactions.

Exercise | Q 69 | Page 123

Gaurav applied for 5,000 shares of ₹ 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis . After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of ₹ 2 per share, his shares were forfeited. These shares were reissued at the rate of ₹ 8 per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares. 

Exercise | Q 70 | Page 123

'Telecom Ltd.' issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as: ₹ 7 (including premium) on application, ₹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's Journal and the Balance Sheet.

Exercise | Q 71 | Page 123

Kamal Ltd. was formed on 1st April, 2010 with an authorised capital of ₹ 2,00,000 , divided into 2,000 Equity Shares of ₹ 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered or public subscription at a premium of ₹ 5 per share payable as:

On application  ₹ 10 per share,
 On allotment  ₹ 25 per share(including premium),
 On first call ₹ 40 per share,
 On final call  ₹ 30 per share.

Applications were received for 900 shares which were duly allotted and the allotment money was received in full . At the time of the first call, a shareholder who held 100 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ ₹ 60 per share , ₹ 70 per share paid-up.
Final call has not been made.
You are required to
(i) give necessary journal entries to record the above transactions and
(ii) show how  share capital would appear in the Balance Sheet of the company.

Exercise | Q 72 | Page 124

Krishna & Co. Ltd. with an authorised capital of ₹ 2,00,000 divided into 20,000 Equity Shares of ₹  10 each, issued the entire amount of the shares payable as:
 ₹  5 on application  (including premium ₹ 2 per share),
 ₹  4 on allotment, and
 ₹  3 on call.
All share money is received in full with the exception of the allotment money on 200 shares and the call money on 500 shares (including the 200 shares on  which the allotment  money has not been paid).
The above 500 shares are duly forfeited and 400 of these( including the 200 shares on which allotment money has not been paid) are reissued at ₹ 7  per share payable by the purchaser as fully paid-up. Pass journal entries(including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.

Exercise | Q 73 | Page 124

Midee  Ltd. invited applications for issuing 27,000 shares of ₹  100 each payable  as follows:
      ₹  50per share on application;
     ₹  10per share on allotment; and
    Balanceon First and Final call.
Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro rata basis. Excess money received on applications was adjusted towards allotment and call.
Asha, holding 600 shares was belonged  to the category of applicants to whom full allotment was made ,paid the call money at the time of allotment . Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis  did not pay anything after application on his 200 shares . Ankur's shares were forfeited after the First and Final call. These shares were later reissued at  ₹  105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd . for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary. 

Exercise | Q 74 | Page 124

VXN Ltd. invited applications for issuing 50,000 equity shares of  ₹  10 each at a premium of  ₹  8 per share . The amount was payable as follows:
 

 On Application                                      ------                       ₹ 4 per share (Including  ₹ 2 premium);
 On Allotment        ------   ₹  6 per share (Including  ₹  3 premium);
 On First Call          -----   ₹  5 per share (Including  ₹  1  premium); and
 On Second and Final Call

         -----

 Balance Amount

The issue was fully subscribed . Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment . Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued at  ₹  9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.

Exercise | Q 75 | Page 125

Sukanya 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 and Allotment --   ₹ 14 per share (including premium of  ₹  10),
 On First Call --  ₹  8 per share (including premium of  ₹  5),
 On Final Call  --  ₹  8 per share (including premium of  ₹  5).

Applications for 96,000 shares were received. Rohit , a shareholder holding 7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited . Of the forfeited shares 8,000 shares including all  the shares of Rohit were reissued to Reena at  ₹  8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.

Exercise | Q 76 | Page 125

Alfa Ltd. invited applications for issuing 75,000 equity shares of  ₹  10 each. The amount was payable as follows:

 On application and allotment      ₹ 4 per share ,
 On first Call     ₹  3 per share,
 On  second and final Call     balance.


Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and excess money received with applications was transferred towards sums due  on first call. Vibha who was allotted 750 shares failed to pay the first call . Her shares were immediately forfeited . Afterwards the second call was made. The amount due on second call was also received except on 1,000 shares applied by Monika . Her shares were also forfeited. All the forefited shares were reissued to Mohit for ₹9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd .  for the above transactions.

Exercise | Q 77 | Page 125

Himalaya Company Limited issued for public subscription  1,20,000 equity shares of ₹  10 each at a premium for ₹  2 per share payable as under:

 With Application       ---  ₹ 3 per share,
 On allotment (including premium)       -- ₹  5 per share,
 On First call       -- ₹  2 per share 
 On Second and Final call       -- ₹  2 per share.

Applications were received for 1,60,000 shares . Allotment was made on pro rata basis . Excess money on application were adjusted against the amount due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These shares were subsequently forfeited  after the second call was made . All the shares forfeited were reissued to Teena as fully paid at ₹  7 per share.
Record journal entries and show the transactions relating to share capital in the company's Balance Sheet.  

Exercise | Q 78 | Page 125

Amrit Ltd. issued 50,000 shares of ₹  10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries. 

Exercise | Q 79 | Page 126

Dogra Ltd. had an authorised capital of ₹ 1,00,00,000 divided into Equity Shares of ₹ 100 each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:

       On Application  ---  ₹ 30 per share,
       On Allotment  ---  ₹ 40 per share(including premium),
       On First and Final call  ---  ₹ 50 per share.
 

Applications were received for 80,000 shares.
All sums were duly  received except the following:
   Lakhan, a holder of 200 shares did not pay allotment and call money.
   Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the forfeited shares were reissued  for ₹  80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company
Exercise | Q 80 | Page 126

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium  of   ₹ 2 per share. The amount was payable as follows

On application  ----  ₹ 2 per share,
On allotment

  

----

 ₹ 5 per share(including premium),
 On first and final call

 ---

 

 Balance.
 

Applications for 1,50,000  shares were received . Shares were allotted to all the applicants on pro rata basis. Excess money received on applications was adjusted towards sums due on allotment . All calls were made. Manu who had applied for 3,000 shares failed to pay the amount  due on allotment and first and final call Madhur who was allotted 2,400 shares failed to pay the first and final call . Shares of both Manu and Madhur  were forfeited . The forfeited shares were reissued at  ₹ 9 per share as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.

Exercise | Q 81 | Page 126

JJK Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount was payable as follows:

       On Application   ---  ₹ 2 per share,
       On Allotment   ---  ₹ 4 per share; and
       On First and Final call   ---  
Balance Amount.
 

The issue was oversubscribed three times. Applications for 30%  shares were rejected and money refunded .Allotment was made to the remaining applicants as follows:

       Category  No . of Shares Applied  No. of Shares Allotted
       I     80,000    40,000
      II     25,000
  10,000
 

 Excess money  paid by the applicants who were allotted shares was adjusted towards sums due on allotment .
Deepak, a shareholder belonging  to Category I , who had applied for 1,000 shares ,failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment . Afterwards, first and final call was made and was duly received . The forfeited shares of Deepak and Raju were reissued at ₹11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of company. 

Exercise | Q 82 | Page 127

XYZ Ltd . is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which , 1,000 shares were offered for public subscription at a premium of ₹ 5 per share , payable as:

    On application       ---     ₹ 10 per share,
    On allotment       ---     ₹ 25 per share (including premium),
    On first call       ---     ₹ 40 per share
    On final call   ---     ₹ 30 per share

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed  to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited. 

Exercise | Q 83 | Page 127

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

On Application 3 per share;
On Allotment 3 per share (including premium);
On First Call 3 per share;
On Second and Final Call Balance amount.

Applications for 1,60,000 shares were received. Allotment was made on the following basis:

(i) To applicants for 90,000 shares 40,000 shares;
(ii) To applicants for 50,000 shares 40,000 shares;
(iii) To applicants for 20,000 shares Full shares.

Excess money paid on application is to be adjusted against the amount due on allotment and calls.

Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money. 

Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money.

All the shares of Rishabh and Sudha were forfeited and were subsequently reissued at ₹ 7 per share fully paid.

Pass the necessary Journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required.

Exercise | Q 84 | Page 127

Ruchi Ltd. issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of  ₹ 2 per share payable as:

       On application  ---  ₹ 2 per share;
       On allotment ---  ₹ 5 per share (including premium),
       On first call ---  ₹ 2 per share,
       On second and final call ---  ₹ 3 per share.

Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid-up @ ₹ 8 per share.
Give necessary Journal entries for the above transactions. 

Exercise | Q 85 | Page 128

Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of ₹ 10 each, payable ₹ 5 as per application (including ₹ 2 as premium), ₹ 4 as per allotment and the balance towards first and final call.

Applications were received for 65,000 shares.  Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment.

Mr. Sharma to whom 700 shares were allotted failed to pay  the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.

All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for ₹ 9 per share.

You are required to set out the Journal entries and the relevant entries in the Cash Book.

Exercise | Q 86 | Page 128

Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of ₹ 10 each at a premium  of ₹ 3 per share. The amount was payable as follows:

       On application  ---  ₹ 6 per share(including premium ₹1);
       On allotment  ---  ₹ 3 per share(including premium ₹ 1); and
       The balance  ---  on First and Final call.
 

Applications for 1,80,000  shares were received .Applications for 10,000  shares were rejected and pro rata allotment was made to the remaining applicants.Over payment received on application was adjusted towards sums due on allotment . All calls were made and were duly received except allotment and final call from Aditya who was  allotted 3,200 shares. His shares were forfeited . Half of the forfeited shares were reissued for ₹ 43,000  as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.

Exercise | Q 87 | Page 128

Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as follows:           

On application               ---                     ₹ 3 per share
On allotment                  ---                    ₹ 5 per share,
On first and final call      ---                    Balance. 

Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up . The reissued shares included all the  shares of Ramesh.
Pass necessary journal entries for the above  transactions in the books of the company.  
Exercise | Q 88 | Page 128

Prince Limited issued a prospectus inviting applications for 20,000 equity shares of ₹10 each at a premium of ₹ 3 per share payable as follows:

With application      ---    
    ₹2,    
On allotment (including premium)      ---     ₹5, 
On first call      ---     ₹3,
On second call      ---     ₹3.

Applications were received for 30,000 shares and allotment was made on pro rata basis. Money overpaid on application s was adjusted to the amount due on allotment. 
Mr Mohit whom 400 shares were allotted , failed to pay the allotment money and the first call , and his shares were forfeited after the first call . Mr Joly, whom 600 shares were allotted , failed to pay for the two calls and hence, his shares were forfeited .
Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for  ₹ 9 per share , the whole of Mr Mohit's  shares being included.

Exercise | Q 89 | Page 129

XYZ Ltd. invited applications for issuing 50,000 Equity Shares of  ₹10 each . The amount was payable as:

      On application      ---    ₹ 3 per share,
      On allotment      ---    ₹ 4 per share,
     On first and final call      ---    ₹ 3 per share.

Applications were received for 75,000 shares and pro rata allotment was made as: 
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 30,000 shares on pro rata basis.
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment .
Shamu, who had applied for 700 shares out of the group applying for 35,000 shares , failed to pay the first  and final call . His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @ Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis. 8 per share as fully paid-up. The reissued  shares included all the forfeited shares of Shamu.
Pass necessary Journal entries to record the above transactions.

Exercise | Q 90 | Page 129

Super Star Ltd. issued a prospectus inviting applications for 2,000 shares of ₹  10 each at a premium of ₹  2 per share , payable as:

On application   ---  ₹ 3 per share (including ₹  1 premium),
On allotment   ---  ₹  4 per share (including ₹  1 premium),
On first call   ---  ₹  3 per share
On second and final call   ---  ₹  2 per share.

Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares . It was decided to utilise excess application money towards  the amount due on allotment .
Ramesh, to whom 40 shares  were allotted , failed  to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Rajesh, who applied  for 72 shares failed to pay  the two calls and on such failure, his shares were forfeited . 
Of the shares forfeited, 80 shares were sold to Krishan credited as fully paid-up for ₹  9 per share, the whole of Ramesh's shares being  included.
Give journal entries to record the above transactions ( including cash transactions). 

Exercise | Q 91 | Page 129

Bharat Ltd . invited applications for issuing 2,00,000 Equity Shares of ₹  10 each. The amount was payable as:
On application ₹  3 per share , on allotment ₹  5 per share and on first and final call ₹  2 per share. Applications for 3,00,000 shares were received and pro rata allotment was made to all the applicants on the following basis:
Applicants for 2,00,000 shares were  allotted 1,50,000 shares on pro rata basis.
Applicants for 1,00,000 shares were allotted  50,000 shares on pro rata basis.
Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment . Sharma, who had  applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call . His shares  were also forfeited.
Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ ₹ 8 per share . The reissued shares included all the forfeited shares of Bajaj.
Give necessary  journal entries to record the above transactions. 

Exercise | Q 92 | Page 130

The Directors of Super Star Ltd. invited applications for 2,00,000 Equity Shares of ₹  10 each to be issued at 20% premium. The money payable per shares was: on application ₹  5, on allotment ₹  4 (including premium of ₹  2), first call ₹  2  and final call ₹  1.

Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares ---- in full,
(ii) to applicants for 80,000 shares --- 60,000 shares,
(iii) to applicants for 60,000 shares --- 40,000 shares.

Applicants of 1,000 shares falling in Category
(i) and applicants of 1,200 shares falling in Category
(ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category
(iii) failed to pay the first and final call and these shares were forfeited after final call.
1,300 shares[1,000 of Category(i) and 300 of Category (ii)] were reissued at ₹  8 per share as fully paid-up.
Journalise the above transactions. Prepare Cash book and Balance Sheet.

Exercise | Q 93 | Page 130

XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:                 

On application      ---         ₹ 6 (including ₹ 1 premium)
On allotment           ---         ₹ 2 (including ₹ 1 premium)
On first  call          ---         ₹ 3 (including ₹ 1 premium)
On second and final call          ---         ₹ 3 (including ₹ 1 premium)

Applications were received for 3,000 shares and pro rata allotment was made on the applications for  2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited. 
Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for  ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet . 

Chapter 1: Accounting for Share Capital

Exercise

T.S. Grewal T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2

T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2 - Shaalaa.com

Textbook solutions for Class 12






















T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Accounting for Share Capital

T.S. Grewal solutions for Class 12 Accountancy chapter 1 (Accounting for Share Capital) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE T S Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2 solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. T.S. Grewal textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Accountancy chapter 1 Accounting for Share Capital are Features of a Company, Types of Companies, Share Capital of a Company, Types of Shares - Preference Shares Equity Shares, Issue of Shares – Procedure, Accounting Treatment, Accounting Treatment of Forfeiture and Re-issue of Share.

Using T.S. Grewal Class 12 solutions Accounting for Share Capital exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in T.S. Grewal Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer T.S. Grewal Textbook Solutions to score more in exam.

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