NCERT Solutions for Class 12-commerce Accountancy CBSE Chapter 1: Accounting for Share Capital

Accounting for Share Capital Exercise 65

Solution SA 1

A public company is a company which offers a part of its ownership by issuing shares, debentures, bonds and securities to the public through the stock market. There must be at least seven members to form a public company. No restriction has been prescribed on the maximum number of members. There must be at least three directors in the company but not more than fifteen. The word 'Limited' is used as part of the name. According to the Companies Act, 1956, a public company is a company which

Is not a private company
Has a minimum paid up capital of Rs.5,00,000 or such higher paid up capital, as may be prescribed
Is a private company, being a subsidiary of a company which is not a private company. A public company should not be understood as a publicly-owned company, as the latter is exclusively owned and controlled by the government

A public company can be divided into two types:

Listed Company: A company whose shares are listed and traded in the stock exchange such as Gujarat Gas, Tata Motors, Reliance etc.
Unlisted Company: A company whose shares are not listed in the stock exchange and thus these shares cannot be traded in the stock exchange.

Solution SA 2

A private limited company is a company which is limited by shares or by guarantee by its members. It is a company which has a minimum paid up share capital of Rs.1,00,000. According to the Companies Act, 1956, a private limited company has the following characteristics:

It restricts the right to transfer its shares, if any.
There must be at least two and a maximum of 50 members (excluding current and former employees) to form a private company.
It prohibits application from the general public to subscribe to its shares or debentures.
It cannot invite or accept deposits from persons other than its members, directors and their relatives. Unlike a public company, a private limited company cannot issue its shares or debentures to the general public at large as shares of these companies are not traded in the stock exchange.

Solution SA 3

A company may forfeit shares if the shareholder fails to pay the allotment money or any subsequent calls due on shares. Before forfeiture, the company must give a clear 14-day notice to the shareholder informing him/her about the non-payment of the amount due. Even after the notice, if the shareholder does not pay the due, then the company forfeits the shares allotted to him/her and strikes off the name from the register of shareholders.

Solution SA 4

When a shareholder fails to pay the allotment money or any subsequent calls on its due date, the company expects that the shareholder will pay the money due in the later stages (or calls). Such amount of money which is being paid at the later stages is termed calls-in-arrears. The company will deduct calls-in-arrears from the total capital called up to show net paid up capital in the balance sheet.

Solution SA 5

Companies whose shares are listed on the stock exchange for public trading such as Tata Motors, Gujarat Gas, Reliance etc. are called listed companies. These companies are also called quoted companies. The listing of securities (shares) helps the investor to find out increase/decrease in the value of their investment in a concerned listed company. This gives sufficient indication to potential investors about the goodwill of the company and facilitates them to take various investment decisions and to measure the viability of their investment in a company.

Solution SA 6

According to Section 78 of the Companies Act, 1956, the amount of securities premium can be utilised by the company:

In paying up unissued shares of the company to be issued to members (shareholders) of the company as fully paid bonus share
In writing off the preliminary expenses of the company
In writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company
In paying up the premium which is to be payable on redemption of any redeemable preference shares or of any debentures of the company
To buy-back its own shares u/s 77A

Solution SA 7

The amount paid in advance, i.e. before the due date, is known as calls-in-advance. A shareholder pays the whole amount or a part of the amount of shares before it becomes due, i.e. before the company calls for it.

Solution SA 8

The minimum amount which must be subscribed by the public when shares are issued is termed minimum subscription. According to the Companies Act, 1956, the minimum subscription of shares cannot be less than 90% of the issue price. The company cannot allot shares to its applicants if the minimum subscription is not received and shall immediately refund the entire application money received.

Accounting for Share Capital Exercise 66

Solution NUM 1

Books of Anish Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		9,00,000
	---------To Equity Share Capital A/c				9,00,000
	(Being Application money received on application for 30,000 equity shares @ Rs.30 per share

	Equity Share Application A/c	Dr.		9,00,000
	---------To Equity Share Capital A/c				9,00,000
	(Being share application money transferred to share capital)

	Equity Share Allotment A/c	Dr.		15,00,000
	---------To Equity Share Capital A/c				15,00,000
	(Being allotment money due on 30,000 shares @ Rs.50 per share)

	Bank A/c	Dr.		15,00,000
	---------To Equity Share Allotment A/c				15,00,000
	(Being allotment money received 30,000 shares @ Rs.50 per share)

	Equity Share First and Final Call A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				6,00,000
	(Being first and final call due on 30,000 shares @ Rs.20 per share)

	Bank A/c	Dr.		6,00,000
	--------To Equity Share First and Final Call A/c				6,00,000
	(Being first and final call money received for 30,000 shares @ Rs.20 per share)

Solution NUM 2

Books of Adarsh Control Device Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		90,000
	---------To Equity Share Capital A/c				90,000
	(Being Application money received on application for 30,000 equity share @ Rs.3 per share transferred to share capital)

	Equity Share Allotment A/c	Dr.		1,20,000
	---------To Equity Share Capital A/c				1,20,000
	(Being allotment money due on 30,000 shares @ Rs.4 per share)

	Equity Share First and Final Call A/c	Dr.		90,000
	---------To Equity Share Capital A/c				90,000
	(Being first and final call due on 30,000 shares @ Rs.3 per share)

Cash Book ( Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Equity Share Application A/c		90,000
	To Equity Share Allotment A/c		1,20,000
	To Equity Share First and Final Call A/c		90,000
					By Balance c/d		3,00,000
			3,00,000				3,00,000

Solution NUM 3

Books of Software Solution India Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		12,00,000
	---------To Equity Share Capital A/c				8,00,000
	---------To Equity Share Allotment A/c				4,00,000
	(Being application money transferred to equity share capital for 20,000 shares @ Rs.40 and Rs.4,00,000 is adjusted toward allotment)

	Equity Share Allotment A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				6,00,000
	(Being equity share allotment money due on 20,000 shares @ Rs.30 per share)

	Equity Share First and Final Call A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				6,00,000
	(Being equity share first and final call due on 20,000 shares @ Rs.30 per share)

Cash Book ( Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Equity Share Application A/c		12,80,000		By Equity Share Application A/c		80,000
	To Equity Share Allotment A/c		2,00,000
	To Equity Share First and Final Call A/c		6,00,000
					By Balance c/d		20,00,000

			20,80,000				20,80,000

Working Note:

Amount due on Allotment for 20,000 shares @ Rs.30 per share	6,00,000
Less: Adjusted on application 10,000 shares @ Rs.40 each	(4,00,000)
Money to be received on Allotment	2,00,000

Solution NUM 4

Books of Rupak Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		2,00,000
	---------To Share Capital A/c				2,00,000
	(Being Application money for 10,000 shares transferred to share capital account)

	Share Allotment A/c	Dr.		3,00,000
	---------To Share Capital A/c				3,00,000
	(Being allotment money due on 10,000 shares @ Rs.30 per share)

	Share First Call A/c	Dr.		2,50,000
	---------To Share Capital A/c				2,50,000
	(Being first call due on 10,000 share @Rs.25 per share)

	Calls in Arrears A/c	Dr.		5,000
	---------To Share First Call A/c				5,000
	(Being call in arrears on 200 shares @ Rs.25 per share)

Cash Book (Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Share Application A/c		2,00,000
	To Share Allotment A/c		3,00,000
	To Share First Call A/c		2,45,000
	To Calls in Advance A/c		12,500		By Balance c/d		7,57,500

			7,57,500				7,57,500

Working Note:

Money due on First Call for 10,000 shares @ 25 each	2,50,000
Less: Calls in Arrear for 200 shares @ Rs.25 per Share	(5,000)
Money Received on First Call	2,45,000
Add: Calls received in advance on 500 shares @ Rs.25 per share	12,500
	2,57,500

Solution NUM 5

Books of Mohit Glass Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		7,20,000
	---------To Share Application A/c				7,20,000
	(Being application money received on application for 24,000 shares @ Rs.30 per Share)

	Share Application A/c	Dr.		7,20,000
	---------To Share Capital A/c (Bank column)				6,00,000
	---------To Bank A/c				1,20,000
	(Being share application of 20,000 shares @ Rs.30 transferred to share capital account and the balance returned)

	Share Allotment A/c	Dr.		8,00,000
	---------To Share Capital A/c				6,00,000
	---------To Share Premium A/c				2,00,000
	(Being allotment money due on 20,000 shares @ Rs.40 per share including Rs.10 for Premium)

	Bank A/c	Dr.
	---------To Share Allotment A/c			8,00,000
	(Being allotment money received on 20,000 shares @ Rs.40 per Share)				8,00,000

	Share First Call A/c	Dr.		4,00,000
	---------To Share Capital A/c				4,00,000
	(Being first call due on 20,000 shares @ Rs.20 per share)

	Bank A/c	Dr.		4,00,000
	---------To Share First Call A/c				4,00,000
	(Being first call money received on 20,000 shares @ Rs.20 per Share)

	Share Final Call A/c	Dr.		4,00,000
	---------To Share Capital A/c				4,00,000
	(Being final call money due on 20,000 shares @ Rs.20 per Share)

	Bank A/c	Dr.		4,00,000
	---------To Share Final Call A/c				4,00,000
	(Being final call money received on 20,000 shares @ Rs.20 per Share)

Solution NUM 6

Books of A Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		3,00,000
	10% Preference Share Application A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				3,00,000
	---------To10% Preference Share Capital A/c				6,00,000
	(Being application money transferred to Equity share capital )

	Equity Share Allotment A/c	Dr.		5,00,000
	10% Preference Share Allotment A/c	Dr.		8,00,000
	---------To Equity Share Capital A/c				3,00,000
	---------To Securities Premium A/c				2,00,000
	---------To 10% Preference Share Capital A/c				8,00,000
	(Being amount due on allotment)

	Equity Share First and Final Call A/c	Dr.		4,00,000
	10% Preference Share First and Final Call A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				4,00,000
	---------To 10% Preference Share Capital A/c				6,00,000
	(Being amount on first and final call due)

Cash Book (Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Equity Share Application A/c		3,00,000
	To 10% Preference share Application A/c		6,00,000
	To Equity Share Allotment A/c		5,00,000
	To 10% Preference share Allotment A/c		8,00,000		By Balance c/d		32,00,000
	To Equity Share First and Final Call A/c		4,00,000
	To 10% Preference share First and Final Call A/c		6,00,000

			32,00,000				32,00,000

Accounting for Share Capital Exercise 67

Solution NUM 7

Books of Eastern Company Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		1,80,000
	---------To Share Capital A/c				1,50,000
	---------To Share Allotment A/c				30,000
	(Being 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
	(Being allotment money due on 50,000 shares @ Rs.5 per share including Rs.3 Security premium)

	Share First Call A/c	Dr.		1,50,000
	---------To Share Capital A/c				1,50,000
	(Being first call due on 50,000 shares @ Rs.3 per share)

Cash Book (Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Share Application A/c		1,80,000
	To Share Allotment A/c		2,20,000
	To Share First Call A/c		1,49,700		By Balance c/d		5,49,700

			5,49,700				5,49,700

Eastern Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	3,99,700
b. Reserve 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 ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-----1,00,000-Share of Rs.10 each		10,00,000
	Issued share Capital
	-------50,000 share of Rs.10 each		5,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------50,000 Share of Rs.10 each, Rs. 8 Called-up	4,00,000
	-------Less : Calls-in-Arrears	300	3,99,700

2	Reserve and Surplus
	-------Securities Premium		1,50,000

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

Note: In order to solve this question, applicants of category C have been assumed as 5000 instead of 500 and allotment to the applicants of this category has been taken as 2000 in place of 200.

Solution NUM 8

Books of Sumit Machine Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		12,50,000
	---------To Share Application A/c				12,50,000
	(Being Share Application money received on application for 50,000 shares @ Rs.25 per share)

	Share Application A/c	Dr.		12,50,000
	---------To Share Capital A/c				12,50,000
	(Being share application money of 50,000 shares transferred to Share Capital Account)

	Share Allotment A/c	Dr.		20,00,000
	Discount on Issue of Shares A/c	Dr.		2,50,000
	---------To Share Capital A/c				22,50,000
	(Being share allotment money due on 50,000 shares @ Rs.40 each at discount of 5)

	Bank A/c	Dr		20,00,000
	---------To Share Allotment A/c				20,00,000
	(Being allotment money received for 50,000 shares @ Rs.40 per share)

	Share First and Final Call A/c	Dr.		15,00,000
	---------To Share Capital A/c				15,00,000
	(Being share first and final call due on 50,000 shares @ Rs.30 per share)

	Bank A/c	Dr.		14,88,000
	Calls in Arrears A/c	Dr.		12,000
	---------To Share First and Final call A/c				15,00,000
	(Being first and final call received except 400 share)

Sumit Machine Ltd.
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	49,88,000
2. Non - Current Liabilities
3. Current Liabilities
Total		49,88,000
II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	2	2,50,000
2. Current Assets
a. Cash and Cash Equivalents	3	47,38,000
Total		49,88,000

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-------Share of Rs.100 each
	Issued share Capital
	-------50,000 share of Rs.100 each		50,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------50,000 Share of Rs. 100 each,	50,00,000
	Less : Calls-in-Arrears	12,000	49,88,000

2	Other Non-Current Assets
	-------Discount on Issue of Share		2,50,000

3	Cash and Cash Equivalents
	-------Cash at Bank		47,38,000

Solution NUM 9

Case (a)

Books of Kumar Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Sundry Assets A/c	Dr.		6,30,000
	---------To Bhanu Oil Ltd A/c				6,30,000
	(Being assets purchased from bhanu oil ltd.)

	Bhanu Oli Ltd A/c	Dr.		6,30,000
	---------To Share Capital A/c				6,30,000
	(Being 6,300 shares issued at par to bhanu ltd.)

	Bhanu Oil Ltd A/c	Dr.		6,30,000
	Discount on Issue of Share A/c	Dr.		70,000
	---------To Share Capital A/c				7,00,000
	(Being 7,000 shares issued at 10% discount)

	Bhanu Oil Ltd A/c	Dr		6,30,000
	---------To Share Capital A/c				5,25,000
	---------To Securities Premium A/c				1,05,000
	(Being 5,250 shares are issued at 20% premium)

Case (b)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Sundry Assets A/c	Dr.		6,30,000
	---------To Bhanu Oil Ltd A/c				6,30,000
	(Being assets purchases from bhanu oli ltd.)

	Bhanu Oil Ltd A/c	Dr.		6,30,000
	Discount on Issue of Share A/c	Dr.		70,000
	---------To Share Capital A/c				7,00,000
	(Being 7,000 shares issued at 10% discount to bhanu ltd, in consideration of assets purchased)

Case (c)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Sundry Assets A/c	Dr.		6,30,000
	---------To Bhanu Oil Ltd A/c				6,30,000
	(Being assets purchased from bhanu oil ltd.)

	Bhanu Oil Ltd A/c	Dr		6,30,000
	---------To Share Capital A/c				5,25,000
	---------To Securities Premium A/c				1,05,000
	(Being 5,250 shares are issued at 20% premium to bhanu ltd. in consideration of assets purchased)

Solution NUM 10

Book of Bansal Heavy Machine Ltd Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Machinery A/c	Dr.		3,20,000
	---------To Cash A/c				50,000
	---------To Handa Traders A/c				2,70,000
	(Being machine purchased from Handa Traders paid Rs.50,000 in cash immediately)

	Handa Traders A/c	Dr		2,79,000
	Discount on Issue of Share A/c	Dr.		30,000
	---------To Share Capital A/c				3,00,000
	(Being 3,000 shares issued at Rs.90 face value of Rs.100 each to handa traders in consideration of amount due to him for machinery purchased)

Working Note:

Accounting for Share Capital Exercise 68

Solution NUM 11

Books of Naman Ltd Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		5,00,000
	---------To Share Application A/c				5,00,000
	(Being Share Application money received on application for 20,000 shares @ Rs.25 each)

	Share Application A/c	Dr.		5,00,000
	---------To Share Capital A/c				5,00,000
	(Being share application money of 20,000 shares @ Rs.25 each transferred to Share Capital Account)

	Share Allotment A/c	Dr.		6,00,000
	---------To Share Capital A/c				6,00,000
	(Being share allotment money due on 20,000 share @ Rs.30 each)

	Bank A/c	Dr		5,94,000
	---------To Share Allotment A/c				5,94,000
	(Being allotment money received for 19,800 shares @ Rs.30 per share)

	Share First Call A/c	Dr.		5,00,000
	---------To Share Capital A/c				5,00,000
	(Being first call money due on 20,000 share @ Rs.25 per share)

	Bank A/c	Dr.		4,92,500
	---------To Share First call A/c				4,92,500
	(Being first call received @ Rs.25 per share for 19,700 shares)

	Share Final call A/c	Dr.		4,00,000
	---------To Share Capital A/c				4,00,000
	(Being final call money due on 20,000 shares @ 20 per share)

	Bank A/c	Dr.		3,94,000
	---------To Share Final call A/c				3,94,000
	(Being final call received @ Rs.20 per share for 19,700 share and 300 share failed to pay the call)

	Share Capital A/c	Dr.		30,000
	---------To Share Forfeiture A/c (200×25+100×55)				10,500
	---------To Share Allotment A/c (200× 30)				6,000
	---------To Share First call A/c (300× 25)				7,500
	---------To Share Final call A/c (300×20)				6,000
	(Being 300 share Forfeited)

Alternatively, it can be solved by debiting calls in Arrears Account

Books of Naman Ltd Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		5,00,000
	---------To Share Application A/c				5,00,000
	(Being Share Application money received on application for 20,000 shares @ Rs. 25 each)

	Share Application A/c	Dr.		5,00,000
	---------To Share Capital A/c				5,00,000
	(Being share application money of 20,000 shares@ Rs.25 each transferred to Share Capital Account)

	Share Allotment A/c	Dr.		6,00,000
	---------To Share Capital A/c				6,00,000
	(Being share allotment money due on 20,000 share @ Rs.30 each)

	Bank A/c	Dr.		5,94,000
	Call in Arrears A/c	Dr.		6,000
	---------To Share Allotment A/c				6,00,000
	(Being allotment money received for 19,800 share @ Rs.30 per share and 200 share failed to pay the allotment)

	Share First Call A/c	Dr.		5,00,000
	---------To Share Capital A/c				5,00,000
	(Being first call money due on 20,000 shares @ Rs.25 per share)

	Bank A/c	Dr.		4,92,500
	Call in Arrears A/c	Dr.		7,500
	---------To Share First call A/c				5,00,000
	(Being first call money for 19,700 shares @ Rs.25 each received except 300 share)

	Share Final call A/c	Dr.		4,00,000
	---------To Share Capital A/c				4,00,000
	(Being share final call money due on 20,000 shares @ Rs.20 per share)

	Bank A/c	Dr.		3,94,000
	Calls in Arrears A/c	Dr.		6,000
	---------To Share Final call A/c				4,00,000
	(Being share final call money received for 19,700 share @Rs.20 per share except 300 shares)

	Share Capital A/c	Dr.		30,000
	---------To Share Forfeiture A/c (200×25+100×55)				10,500
	---------To Calls in Arrears A/c				19,500
	(Being 300 shares forfeited on account failed to pay the money due)

Working Note:

1. Forfeited Amount

Amount on application (300 share @Rs.25 each)	7,500
Amount on allotment (100 share @Rs.30 each)	3,000
	10,500

Solution NUM 12

Books of Krishna Ltd Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		4,50,000
	---------To Share Application A/c				4,50,000
	(Being Share Application money received on application for 15,000 shares @ Rs.30 per share)

	Share Application A/c	Dr.		4,50,000
	---------To Share Capital A/c				4,50,000
	(Being share application money of 15,000 shares transferred to Share Capital Account)

	Share Allotment A/c	Dr.		7,50,000
	---------To Share Capital A/c				6,00,000
	---------To Securities Premium A/c				1,50,000
	(Being share allotment money due on 15,000 shares @ Rs.50 per share including Rs.10 securities premium due)

	Bank A/c	Dr.		7,42,500
	---------To Share Allotment A/c				7,42,500
	(Being allotment money received for 14,850 share @ Rs.150 share failed to pay the money due)

	Share First and Final Call A/c	Dr.		4,50,000
	---------To Share Capital A/c				4,50,000
	(Being first call money due on 15,000 shares @ Rs.30 per share due)

	Bank A/c	Dr.		4,45,500
	---------To Share First and Final Call A/c				4,45,500
	(Being First and Final Call received for 14,850 share @ Rs.30 per share and 150 share failed to pay amount due)

	Share Capital A/c (150 × 100)	Dr.		15,000
	Share Premium A/c (150 × 10)	Dr.		1,500
	---------To Share Allotment A/c(150 × 50)				7,500
	---------To Share First and Final Call A/c (150 × 30)				4,500
	---------To Share Forfeiture A/c (150 × 30)				4,500
	(Being 150 shares forfeiture for non- payment of share allotment and share first and final call)

	Bank A/c	Dr.		18,000
	---------To Share Capital A/c				15,000
	---------To Securities premium A/c				3,000
	(Being 150 share of Rs.100 each reissued @ Rs.120 to Neha)

	Share Forfeiture A/c	Dr.		4,500
	---------To Capital Reserve A/c				4,500
	(Being balance of share forfeiture account transferred to capital reserve account)

Note: We have assumed the reissued price as Rs.120 per Share.

Solution NUM 13

Books of Arushi Computers Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		2,00,000
	---------To Share Application A/c				2,00,000
	(Being share application money received for 10,000 shares @ Rs.20 per share)

	Share Application A/c	Dr.		2,00,000
	---------To Share Capital A/c				2,00,000
	(Being share application money of 10,000 shares transferred to Share Capital Account)

	Share Allotment A/c	Dr.		3,00,000
	Discount on Issue of Share A/c	Dr.		1,00,000
	---------To Share Capital A/c				4,00,000
	(Being allotment money due on 10,000 shares @ Rs.30 per share excluding discount Rs. 10)

	Bank A/c	Dr.		3,00,000
	---------To Share Allotment A/c				3,00,000
	(Being share allotment money received for 10,000 shares @ Rs.30 share)

	Share First Call A/c	Dr.		3,00,000
	---------To Share Capital A/c				3,00,000
	(Being share first call money due on 10,000 share @ Rs.30 per share)

	Bank A/c	Dr.		3,00,000
	---------To Share First Call A/c				3,00,000
	(Being Share First Call received for 10,000 share @ Rs.30 per share and 30 per share)

	Share Final Call A/c	Dr.		1,00,000
	---------To Share Capital A/c				1,00,000
	(Being final call money due on 10,000 shares @ Rs.10 per share)

	Bank A/c	Dr.		98,000
	---------To Share Final Call A/c				98,000
	(Being final call money received for 9800 shares @ Rs.10 per share and 200 share failed to pay)

	Share Capital A/c (200× 100)	Dr.		20,000
	---------To Share Final Call A/c (200× 10)				2,000
	---------To Discount on Issue of Share A/c (200× 10)				2,000
	---------To Share Forfeiture A/c (200× 80)				16,000
	(Being 200 shares forfeited for non- payment of final call Rs.10 par share)

	Bank A/c (150×75)	Dr.		11,250
	Discount on Issue of Share A/c (150×10)	Dr.		1,500
	Share Forfeiture A/c (150×15)	Dr.		2,250
	---------To Share Capital A/c (150×100)				15,000
	(Being 150 forfeiture share reissued at Rs.100 per share for Rs.75)

	Share Forfeiture A/c	Dr.		9,750
	---------To Capital Reserve A/c				9,750
	(Being balance of 150 reissue shares after adjustment transferred to capital reserve account)

Working Notes:

Amount Transferred to Capital Reserve A/c

Amount credited to Share Forfeiture		Rs.80 per share
	Less: Amount debited to Share Forfeiture	Rs.15 per share
Balance after adjustment		Rs.65 per share

Amount transferred to Capital Reserve Account

= Balance per share after adjustment x Number of shares reissued

= Rs.65 × Rs.150 per share

= Rs.9,750

Solution NUM 14

Books of Raunak Cotton Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		2,00,000
	---------To Share Application A/c				2,00,000
	(Being Share Application money received on application for 10,000 shares)

	Share Application A/c	Dr.		2,00,000
	---------To Share Capital A/c				1,20,000
	---------To Share Allotment A/c				40,000
	---------To Bank A/c				40,000
	(Being share application money adjusted)

	Share Allotment A/c	Dr.		3,00,000
	---------To Share Capital A/c				1,80,000
	---------To Securities Premium A/c				1,20,000
	(Being share allotment money due)

	Bank A/c	Dr.		2,47,000
	---------To Share Allotment A/c				2,47,000
	(Being allotment money received except 300 shares)

	Share First Call A/c	Dr.		1,80,000
	---------To Share Capital A/c				1,80,000
	(Being first call money due)

	Bank A/c	Dr.		1,57,500
	---------To Share First Call A/c				1,57,500
	(Being First Call received except 750 (300+450 shares))

	Share Final Call A/c	Dr.		1,20,000
	---------To Share Capital A/c				1,20,000
	(Being final call money is due)

	Bank A/c	Dr.		1,05,000
	---------To Share Final Call A/c				1,05,000
	(Being share final call money received except 750 shares)

	Share Capital A/c (750 × 100)	Dr.		75,000
	Share Premium A/c (300 × 20)	Dr.		6,000
	---------To Share Allotment A/c				13,000
	---------To Share First Call A/c (750 × 30)				22,500
	---------To Share Final Call A/c (750 × 20)				15,000
	---------To Share Forfeiture A/c				30,500
	(Being 750 share forfeited)

	Bank A/c	Dr.		60,000
	Share Forfeiture A/c	Dr.		15,000
	---------To Share Capital A/c				75,000
	(Being forfeiture share reissue @ Rs.80 per share)

	Share Forfeiture A/c	Dr.		15,500
	---------To Capital Reserve A/c				15,500
	(Being forfeiture account transferred to capital reserve)

Working Note:

2. Call in arrears by Rohit on allotment

Money received on Application	(400×20)	8,000
----- Less: Transferred to share capital	(300×20)	(6,000)
Excess adjusted on allotment		2,000


Allotment due	(300×50)	15,000
------Less: Excess adjustment on allotment		(2,000)
Call in arrear		13,000

4. Share Forfeiture amount

Amount on application
	300×20	6,000
	450×20	9,000
Excess amount received from Robit for allotment on pro-rata basis		2,000
Amount received on Allotment by Kartika		13,500
		30,500

Accounting for Share Capital Exercise 69

Solution NUM 15

Books of Himalaya Company Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		4,80,000
	---------To Share Application A/c				4,80,000
	(Being share application money received for 1,60,000 shares @ Rs.3 per share)

	Share Application A/c	Dr.		4,80,000
	---------To Equity Share Capital A/c				3,60,000
	---------To Share Allotment A/c				1,20,000
	(Being share application for 1,20,000 shares @ Rs.3 per share transferred to Share Capital Account and remaining amount adjusted to allotment)

	Share Allotment A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				3,60,000
	---------To Securities Premium A/c				2,40,000
	(Being share allotment money due on 1,20,000 shares @ Rs.5 per share including Rs.2 Securities Premium)

	Bank A/c	Dr		4,80,000
	---------To Share Allotment A/c				4,80,000
	(Being share allotment for 1,20,000 shares @ Rs.5 per share received)

	Share First Call A/c	Dr.		2,40,000
	---------To Equity Share Capital A/c				2,40,000
	(Being first call due on 1,20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		2,30,000
	---------To Share First call A/c				2,30,000
	(Being first call received on 1,15,200 shares @ Rs.2 per share and 4,800 share failed to pay)

	Share Final Call A/c	Dr.		2,40,000
	---------To Equity Share Capital A/c				2,40,000
	(Being share final call due 1,20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		2,30,400
	---------To Share Final call A/c				2,30,400
	(Being share final call received on 1,15,200 shares @ Rs.2 per share and 4,800 share failed to pay)

	Equity Share Capital A/c ( 4,800× 10)	Dr.		48,000
	---------To Share First call A/c ( 4,800× 2)				9,600
	---------To Share Final call A/c ( 4,800× 2)				9,600
	---------To Share Forfeiture A/c ( 4,800× 6)				28,800
	(Being 4,800 shares forfeited for the non- payment of first call and final call)

	Bank A/c	Dr.		33,600
	Share Forfeiture A/c	Dr.		14,400
	---------To Equity Share Capital A/c				48,000
	(Being 4,800 shares reissued@ Rs.7 per share, fully paid up)

	Share Forfeiture A/c	Dr.		14,400
	---------To Capital Reserve A/c				14,400
	(Being share forfeiture balance of 4,800 shares transferred to capital reserve account)

Himalaya Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	12,00,000
b. Reserve and Surplus	2	2,54,400
2. Non - Current Liabilities
3. Current Liabilities
Total		14,54,400
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	14,54,400
Total		14,54,400

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-------Share of Rs. 10 each
	Issued share Capital
	-------1,20,000 share of Rs. 10 each		12,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------1,20,000 Share of Rs. 10 each,		12,00,000

2	Other Non-Current Assets
	-------Securities Premium	2,40,000
	-------Capital Reserve	14,400	2,54,400

3	Cash and Cash Equivalents
	-------Cash at Bank		14,54,400

Solution NUM 16

Books of Books of Prince Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		6,00,000
	---------To Share Application A/c				6,00,000
	(Being share application money received for 3,00,000 shares @ Rs.2 per share)

	Share Application A/c	Dr.		6,00,000
	---------To Share Capital A/c				4,00,000
	---------To Share Allotment A/c				2,00,000
	(Being share application for 2,00,000 shares transferred to Share Capital Account and the balance adjusted on allotment)

	Share Allotment A/c	Dr.		10,00,000
	---------To Share Capital A/c				4,00,000
	---------To Securities Premium A/c				6,00,000
	(Being allotment money due on 2,00,000 shares @ Rs.5 per share including Premium Rs.3 per share)

	Bank A/c ( 6,00,000 - 2,00,000- 1,600)	Dr		7,98,400
	---------To Share Allotment A/c				7,98,400
	(Being allotment money received)

	Share First Call A/c	Dr.		6,00,000
	---------To Share Capital A/c				6,00,000
	(Being share first call due on 2,00,000 shares @ Rs.3 per share)

	Bank A/c (6,00,000-1,200-1,800)	Dr.		5,97,000
	---------To Share First call A/c				5,97,000
	(Being first call money received)

	Share Capital A/c	Dr.		2,800
	Share Premium A/c	Dr.		1,200
	---------To Share Forfeiture A/c				1,200
	---------To Share Allotment A/c				1,600
	---------To Share First call A/c				1,200
	(Being 400 share forfeiture after first call)

	Share Second Call A/c	Dr.		5,98,800
	---------To Share Capital A/c				5,98,800
	(Being final call money due on 1,99,600 shares @ Rs.3 per share)

	Bank A/c (5,98,800-1,800)	Dr.		5,97,000
	---------To Share Second Call A/c				5,97,000
	(Being second call money received except on 600 share)

	Share Capital A/c	Dr.		6,000
	---------To Share Forfeiture A/c				2,400
	---------To Share First call A/c				1,800
	---------To Share Second Call A/c				1,800
	(Being 600 share forfeited)

	Bank A/c	Dr.		7,200
	Share Forfeiture A/c	Dr.		800
	---------To Share Capital A/c				8,000
	(Being 800 share reissued @ Rs.9 each)

	Share Forfeiture A/c	Dr.		2,000
	---------To Capital Reserve A/c				2,000
	(Being share forfeiture balance transferred to capital reserve )

Prince Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	19,98,000
b. Reserve and Surplus	2	6,01,600
2. Non - Current Liabilities
3. Current Liabilities
Total		25,99,600
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	25,99,600
Total		25,99,600

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	--------Share of Rs.10 each
	Issued share Capital
	--------2,00,000 share of Rs.10 each		20,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------1,99,800 Share of Rs.10 each,		19,98,000

2	Other Non-Current Assets
	-------Securities Premium	5,98,800
	-------Capital Reserve	2,800	6,01,600

3	Cash and Cash Equivalents
	-------Cash at Bank		25,99,600

Money received on Application (600×2)		1,200
	Less: Utilized on application (400×2)	(800)
Excess amount received		400

Amount due on Allotment (400×5)		2,000
	Less: Excess amount received	(400)
Amount due on allotment		1,600

2.Amount to be transferred to Capital Reserve

Amount forfeited on Mohit's 400 shares		1,200
Amount forfeited on Joly's 600 shares-------2,400		1,600
		2,800
	Less: Discount allowed on 800 shares reissued	(800)
Amount to be transferred to Capital Reserve		2,000

Accounting for Share Capital Exercise 70

Solution NUM 17

Books of Life machine tools Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		3,50,000
	---------To Share Application A/c				3,50,000
	(Being Application money received for 70,00 shares @ Rs.5per share including premium Rs.2)

	Share Application A/c	Dr.		3,50,000
	---------To Share Capital A/c				1,50,000
	---------To Securities Premium A/c				1,00,000
	---------To Share Allotment A/c				60,000
	---------To Bank A/c				40,000
	(Being share application money for 50,000 shares transferred to Share Capital Account and Securities Premium Rs.60,000 adjusted to allotment and Rs.40,000 returned)

	Share Allotment A/c	Dr.		2,00,000
	---------To Share Capital A/c				2,00,000
	(Being share allotment money due on 50,000 share @ Rs.4 per share)

	Bank A/c	Dr		1,40,000
	---------To Share Allotment A/c				1,40,000
	(Being share allotment money received on share allotment)

	Share First and Final A/c	Dr.		1,50,000
	---------To Share Capital A/c				1,50,000
	(Being share first and final call money due on 50,000 share @ Rs.3 per share)

	Bank A/c	Dr.		1,48,500
	---------To Share First call A/c				1,48,500
	(Being share first and final call money received from 49,500 share @ Rs.3 per share and 500 share failed to pay)

	Share Capital A/c	Dr.		5,000
	---------To Share First and Final call A/c				1,500
	---------To Share Forfeiture A/c (500×7)				3,500
	(Being 500 share @ Rs.10 per share fully paid up forfeiture for the non- payment of share first and final call Rs. 3 per share)

	Bank A/c	Dr.		4,000
	Share Forfeiture A/c	Dr.		1,000	5,000
	---------To Share Capital A/c
	(Being 500 share reissued @ Rs.8 per share, fully paid up)

	Share Forfeiture A/c	Dr.		2,500
	---------To Capital Reserve A/c				2,500
	(Being balance of 500 shares in forfeiture account after adjustment, transferred to capital reserve account)

Solution NUM 18

Books of Orient Company Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		52,000
	---------To Share Application A/c				52,000
	(Being Application money received for 26,000 shares @ Rs.2 per share)

	Share Application A/c	Dr.		52,000
	---------To Share Capital A/c				40,000
	---------To Share Allotment A/c				4,000
	---------To Bank A/c				8,000
	(Being application money@ Rs.2 per share of 20,000 share transferred to share capital account and money of 4,000 share returned, remaining to share allotment)

	Share Allotment A/c	Dr.		80,000
	---------To Share Capital A/c				60,000
	---------To Securities Premium A/c				20,000
	(Being share allotment money due on 20,000 share @ Rs.4 per share including Rs. 1 Securities Premium )

	Bank A/c	Dr		76,000
	---------To Share Allotment A/c				76,000
	(Being share allotment money received for the share after adjustment of money transferred from share application)

	Share First Call A/c	Dr.		60,000
	---------To Share Capital A/c				60,000
	(Being share first call money due on 20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		60,000
	---------To Share First Call A/c				60,000
	(Being share first call money received 20,000 shares @ Rs.2 per share)

	Share Second and Final call A/c	Dr.		40,000
	---------To Share Capital A/c				40,000
	(Being share second and final call money due on 20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		39,000
	---------To Share Second and Final call A/c				39,000
	(Being share second and final call money received for 19,500 share @ Rs. 2 per share and 500 share failed to pay)

	Share Capital A/c	Dr.		5,000
	---------To Share Second and Final call A/c				1,000
	---------To Share Forfeiture A/c				4,000
	(Being 500 share of Rs.10 per share fully called-up forfeited for non-payment of second and final call Rs.2 per share)

	Bank A/c	Dr.		2,700
	Share Forfeiture A/c	Dr.		300	3,000
	---------To Share Capital A/c
	(Being 300 share @ Rs.10 each reissued for Rs.9 per share, fully paid up)

	Share Forfeiture A/c	Dr.		2,100
	---------To Capital Reserve A/c				2,100
	(Being balance of 300 share in forfeiture account transferred to capital reserve account after adjustment)

Orient Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	1,99,600
b. Reserve and Surplus	2	22,100
2. Non - Current Liabilities
3. Current Liabilities
Total		2,21,700
II. Assets
1. Non-Current Assets
2. Current Assets
------------Cash and Cash Equivalents	3	2,21,700
Total		2,21,700

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-------Equity Share of Rs.10 each
	Issued share Capital
	-------20,000 share of Rs.10 each		2,00,000
	Subscribed, Called-up and paid-up Equity Share Capital
	-------19,800 Equity Share of Rs.10 each,	1,98,000
	-------Add: Share Forfeiture	1,600	1,99,600

2	Other Non-Current Assets
	-------Securities Premium	20,000
	-------Capital Reserve	2,100	22,100

3	Cash and Cash Equivalents
	-------Cash at Bank		2,21,700

Working Note:

Share forfeited Account Credited		Rs.8 per share
	Less: Share forfeited Account debited	Rs.1 per share
Amount to be transferred to Capital Reserve account, after adjustment		Rs.7per share

Amount transferred to capital Reserve Account, after adjustment for 300 shares= 300 share @7 per share = Rs.2,100

Solution NUM 19

books of Alfa Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		24,00,000
	---------To Share Capital A/c				20,00,000
	---------To Share Allotment A/c				4,00,00
	(Being share application money adjusted)

	Share Allotment A/c	Dr.		12,00,000
	---------To Share Capital A/c				12,00,000
	(Being allotment money due)

	Share First and Final Call A/c	Dr.		8,00,000
	---------To Share Capital A/c				8,00,000
	(Being Share First and Final Call due)

2. Call in arrears by applicant on allotment

Money received on Application (500×5)		2,500
	Less: Utilized on application (400×5)	(2,000)
Amount adjusted on Allotment		500

3.

Money due on Allotment (400×3)		1,200
	Less: Money adjusted	(500)
Balance due on Allotment		700

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		4,000
	---------To Share Allotment A/c				700
	---------To Share First and Final call A/c				800
	---------To Share Forfeiture A/c				2,500
	(Being 400 share forfeiture)

	Share Forfeiture A/c	Dr.		400
	---------To Share Capital A/c				400
	(Being share reissued and loss on issue charged from share forfeiture account)

	Share Forfeiture A/c	Dr.		2,100
	---------To Capital Reserve A/c				2,100
	(Being share forfeiture account transferred to capital reserve account)

Cash Book (Bank Column)
Dr.						Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Share Application A/c		25,00,000		By Share Application A/c		1,00,000
	To Share Allotment A/c		7,99,300		By Balance c/d		40,02,100
	To Share first and Final Call A/c		7,99,200
	To Share Capital A/c		3,600

			41,02,100				41,02,100

Accounting for Share Capital Exercise 71

Solution NUM 20

Books of Ashoka Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		20,000
	---------To Final Call A/c				4,000
	---------To Share Discount A/c				4,000
	---------To Share Forfeiture A/c				12,000
	(Being 1,000 Shares of Rs.20 per share forfeited for nonpayment of Share Final Call money @ Rs.4 per share))

	Bank A/c	Dr.		5,600
	Discount on Issue of Share A/c (400×4)	Dr.		1,600
	Share Forfeiture A/c	Dr.		800
	---------To Share Capital A/c				8,000
	(Being 400 share @ Rs.20 per share reissued for Rs.14 per share fully paid-up)

	Bank A/c	Dr.		4,000
	---------To Share Capital A/c				4,000
	(Being 200 share @ Rs.20 per share reissued for Rs.20 per share fully paid up)

	Share Forfeiture A/c	Dr.		6,400
	---------To Capital Reserve A/c				6,400
	(Being balance of 600 share in share forfeiture account transferred to capital reserve account, after reissue)

Balance in share forfeiture Account ( 12,000 - 800 - 6,400) = 4,800

Working Note:

For 400 share

Share forfeiture Account Credited		Rs.12 per Share
	Less: Share forfeiture Account Debited	Rs.2 per Share
Amount transferred to Capital Reserve Account, after adjustment		Rs. 10 per Share

Amount of 400 share transferred to Capital Reserves Account, after Reissue

=400 share @ Rs. 10 per share

=Rs. 4,000

For 200 Share

Share forfeiture Account Credited		Rs.12 per Share
	Less: Share forfeiture Account Debited	Nil
Amount transferred to Capital Reserve Account, after adjustment		Rs.12 per Share

Amount of 200 shares transferred to Capital Reserve Account, after reissue

=200 Shares @ Rs.12 per share

=2,400

Total amount transferred to Capital Reserve

=Capital Reserve for 200 shares + Capital Reserve for 200 shares

=4,000 + 2,400

=Rs.6,400

Solution NUM 21

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c(600x8)	Dr.		4,800
	---------To Share Allotment A/c(100x2)				200
	---------To Share First Call A/c (300x3)				900
	---------To Share Second Call A/c (600x2)				1,200
	---------To Share Forfeiture A/c				2,500
	(Being 600 shares @ Rs.10 per share its 8 called-up forfeited after making second call)

	Bank A/c	Dr.		6,600
	---------To Share Capital A/c				6,000
	---------To Securities Premium A/c				600
	(Being 600 share @ Rs.10 per share reissued for Rs.11 per share fully paid-up)

	Share Forfeiture A/c	Dr.		2,500
	---------To Capital Reserve A/c				2,500
	(Being balance of share forfeiture account transferred to capital reserve account, after reissue)

Working Note:

Share Forfeiture Account Credited
Amit (100×1)	100
Bimal (200×3)	600
Chetan (300×6)	1,800
	2,500

Solution NUM 22

Books of Ajanta Company Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		48,000
	---------To Share Application A/c				48,000
	(Being Application money received for 24,000 shares @ Rs.2per share)

	Share Application A/c	Dr.		48,000
	---------To Share Capital A/c				40,000
	---------To Bank A/c				8,000
	(Being share application @ Rs.2 per share of 20,000 share transferred to share capital and remaining for 4,000 share rejected)

	Share Allotment A/c	Dr.		60,000
	---------To Share Capital A/c				60,000
	(Being allotment money due on @ Rs.3 per share on 20,000 share)

	Bank A/c	Dr		60,000
	---------To Share Allotment A/c				60,000
	(Being allotment money received for 20,000 share @ Rs.3 per share)

	Share First Call A/c	Dr.		50,000
	---------To Share Capital A/c				50,000
	(Being first call money due on 20,000 share @ Rs.2.5 per share)

	Bank A/c	Dr.		50,000
	---------To Share First call A/c				50,000
	(Being share first call money received 20,000 share @ Rs.2.5 per share)

	Share Final call A/c	Dr.		50,000
	---------To Share Capital A/c				50,000
	(Being share final call money due on 20,000 share @ Rs.2.5 per share)

	Bank A/c	Dr.		48,500
	Call in Arrears A/c	Dr.		1,500
	---------To Share Final call A/c				50,000
	(Being share final call money received for 19,400 share @ Rs.2 .5 per share except 600 share)

	Share Capital A/c	Dr.		6,000
	---------To Call in Arrears A/c				1,500
	---------To Share Forfeiture A/c				4,500
	(Being 600 share forfeiture @ Rs.10 each for the non- payment of share final call @ Rs.2.5 per share)

	Bank A/c	Dr.		3,600
	Share Forfeiture A/c	Dr.		400
	---------To Share Capital A/c				4,000
	(Being 400 shares @ Rs.10 each reissued for Rs.9 per share reissued)

	Share Forfeiture A/c	Dr.		2,600
	---------To Capital Reserve A/c				2,600
	(Being after reissue balance of 400 share in forfeiture account transferred to capital reserve account)

Ajanta Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	1,99,500
b. Reserve and Surplus	2	2,600
2. Non - Current Liabilities
3. Current Liabilities
Total		2,02,100
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,02,100
Total		2,02,100

NOTES TO ACCOUNT:

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-------30,000 Share of Rs.10 each
	Issued share Capital
	-------20,000 share of Rs.10 each		3,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------19,800 Equity Share of Rs.10 each,	1,98,000
	-------Add: Share Forfeiture	1,500	1,99,500

2	Reserve and Surplus
	-------Capital Reserve		2,600

3	Cash and Cash Equivalents
	-------Cash at Bank		2,02,100

Working Note:

Share forfeiture Account Credited		Rs.7.5 per share
	Less: Share forfeited Account debited	Rs.1 per share
Amount to be transferred to Capital Reserve account, after adjustment		Rs.6.5 per share

Amount of 400 shares transferred to capital Reserve Account ,after reissue

=400 share @ Rs.6.5 per share

=Rs.2,600

Solution NUM 23

Case (a)

Books of Bhushan Oil Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		16,000
	---------To Share Allotment A/c				10,000
	---------To Share Forfeiture A/c				4,000
	---------To Discount on Issue of Shares A/c				2,000
	(Being 200 shares forfeited @ Rs.100 each issued at a discount of Rs.10 for the non-payment of allotment money Rs.50 per share

	Bank A/c	Dr.		14,000
	Discount on Issue of Shares A/c	Dr.		2,000
	Share Forfeiture A/c	Dr.		4,000
	---------To Share Capital A/c				20,000
	(Being 200 share reissued @ Rs.70 per share full paid-up)

Case (b)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		900
	Securities Premium A/c	Dr.		600
	---------To Share Allotment A/c				1,200
	---------To Share Forfeiture A/c				300
	(Being 150 share @ Rs.10 each forfeited for non-payment of allotment money Rs.8 per share including premium Rs.4)

	Bank A/c	Dr.		2,250
	---------To Share Capital A/c				1,500
	---------To Share Forfeiture A/c				750
	(Being 150 shares @ Rs.10 each reissued for Rs.15 per share fully paid)

	Share Forfeiture A/c	Dr.		300
	---------To Capital Reserve A/c				300
	(Being balance of share forfeiture transferred to capital reserve account)

Case (c)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		20,000
	---------To Share Final Call A/c				4,000
	---------To Share Forfeiture A/c				16,000
	(Being 400 share @ Rs.50 per share forfeited for non-payment of final call Rs.10 per share)

	Bank A/c	Dr.		18,000
	Share Forfeiture A/c	Dr.		2,000
	---------To Share Capital A/c				20,000
	(Being 400 share @ Rs.50 each reissued for Rs.45 per share fully paid)

	Share Forfeiture A/c	Dr.		14,000
	---------To Capital Reserve A/c				14,000
	(Being balance in share forfeiture account to capital reserve account)

Accounting for Share Capital Exercise 72

Solution NUM 24

Books of Amisha Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		20,00,000
	---------To Share Application A/c				20,00,000
	(Being Application money received on 50,000 shares @ Rs.40 per share)

	Share Application A/c	Dr.		20,00,000
	---------To Share Capital A/c				16,00,000
	---------To Share Allotment A/c				4,00,000
	(Being application money adjusted)

	Share Allotment A/c	Dr.		16,00,000
	---------To Share Capital A/c				8,00,000
	---------To Securities Premium A/c				8,00,000
	(Being share allotment money due including Premium )

	Bank A/c	Dr		11,82,000
	---------To Share Allotment A/c				11,82,000
	(Being share allotment money received except 600 share)

	Share Capital A/c	Dr.		36,000
	Share Premium A/c	Dr.		12,000
	---------To Share Allotment A/c				18,000
	---------To Share Forfeiture A/c				30,000
	(Being 600 share forfeited after allotment)

	Share First call A/c	Dr.		9,85,000
	---------To Share Capital A/c				9,85,000
	(Being first call money in due on 39,400 shares)

	Bank A/c	Dr.		9,65,000
	---------To Share First Call A/c				9,65,000
	(Being first call money received except 800 share)

	Share Second and Final call A/c	Dr.		5,91,000
	---------To Share Capital A/c				5,91,000
	(Being second and final call money due on 39,400 share)

	Bank A/c	Dr.		5,79,000
	---------To Share Second and Final call A/c				5,79,000
	(Being second and final call money received except 800 share)

	Share Capital A/c	Dr.		80,000
	---------To Share First Call A/c				20,000
	---------To Share Second and Final call A/c				12,000
	---------To Share Forfeiture A/c				48,000
	(Being 800 share Forfeited)

	Bank A/c	Dr.		1,02,000
	Share Forfeiture A/c	Dr.		18,000
	---------To Share Capital A/c				1,20,000
	(Being forfeited share reissued 1,200 @ Rs.85 per share)

	Share Forfeiture A/c	Dr.		48,000
	---------To Capital Reserve A/c				48,000
	(Being profit on 1,200 reissued share are transfer to capital reserve account)

Cash Book (Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Share Application A/c		20,00,000		By Balance c/d		48,28,000
	To Share Allotment A/c		11,82,000
	To Share First Call A/c		9,65,000
	To Share Final Call A/c		5,79,000
	To Share Capital A/c		1,02,000

			48,28,000				48,28,000

2. Call in arrears by Rohit on allotment

Money received on Application (750x40)		30,000
	Less: Amount adjusted on Application (600x40)	24,000
Amount adjusted on Allotment		6,000

3.

Money due on Allotment(600×40)	24,000
Money adjusted	6,000
Balance due on Allotment	18,000

4

5 .Profit On the forfeiture of 600 share of Rohit = Rs.30,000

Profit on forfeiture of 1200 shares (30,000 + 36,000)		66,000
	Less: Loss on reissue of shares	(18,000)
Transfer to Capital Reserve		48,000

6. Balance in Share Forfeiture Account (48,000 - 36,000) = Rs.12,000

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Class 12-commerce NCERT Solutions Accountancy Chapter 1 - Accounting for Share Capital

Accounting for Share Capital Exercise 65

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Accounting for Share Capital Exercise 66

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Accounting for Share Capital Exercise 67

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Accounting for Share Capital Exercise 68

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Accounting for Share Capital Exercise 69

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Accounting for Share Capital Exercise 70

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Accounting for Share Capital Exercise 71

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Accounting for Share Capital Exercise 72

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