Question 1

Question 1 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 1 Chapter 8 of +2-A
Disclosure of share capital in the company’s Balance sheet
1.  Gopal Ltd. was registered with an authorised capital of Rs 50,00,000 divided into Equity shares of Rs 100 each. The company offered for public subscription all shares. The public applied for 45,000 shares and an allotment was made to all the applicants. All the calls were made to all the calls were made and were made and were duly received except the final call of Rs 20 per share on 500 shares.Prepare th

Question 2

Question 2 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 2 Chapter 8 of +2-A
2. Himmat ltd. has an authorized share capital of RS 50,00,000 divided into 50,00,000 equity shares of Rs 10 each. It has an existing issued and paid-up capital of Rs 5,00,000. It further issued to the public 1,50,000 equity shares at par for subscription payable as under:

On Application
Rs 3

On Allotment
Rs 4 and

On-Call 
Balance Amount

The issue was fully subscribed and allotment was made to all applicants call was made to during the year and was dully m

Question 3

Question 3 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 3 Chapter 8 of +2-A
Disclosure of share capital in the company’s Balance sheet.
3. LENOVO LTD. has an authorized share capital of Rs 1,00,00,000 divided into 1,00,000 equity shares of Rs 100 each. It has an existing issued and paid-up capital of Rs 25,00,000.it further issued to public 25,000 equity shares at a premium of 20% for subscription payable as under:

ON APPLICATION
RS 30

ON ALLOTMENT
RS 60

ON CALL
BALANCE AMOUNT

The issue was fully subscribed and allotment was mad

Question 4

Question 4 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 4 Chapter 8 of +2-A
Disclosure of share capital in the company’s Balance sheet.
4. Star ltd is registered with capital of Rs 50,00,000 divided into 50,000 equity shares of each. the company issued 25,000 equity shares for a subscription. the subscription was received for 23,750 shares and all the due was duly received, except the first call and final call of Rs 20 per shares on 600 shares.Show the share capital in the balance sheet of the company. Note: problems related to disclosure o

Question 5

Question 5 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 5 Chapter 8 of +2-A
Disclosure of share capital in the company’s Balance sheet.
5. Money plus company issued 25,00,000 equity shares of Rs 10 eachto the public. All amounts have been received in lumps sum.Pass necessary journal entries in the books of the company.
The solution of Question 5 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

Bank A/c
Dr.
 
25,00,000

To equity share application A/c
 
 
 
25,00,000

(Being the application money received )

Question 6

Question 6 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 6 Chapter 8 of +2-A
6. The authorized capital of Rs 16,00,000 of Bharat ltd .is divided into equity shares of Rs 10 each of these shares,80,000 equity shares were issued at par to the public for subscription .the full nominal value is payable on application. All the shares were subscribed by the public and the total amount was paid for.
Pass necessary journal entries in the books of company.
The solution of Question 6 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

B

Question 7

Question 7 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 7 Chapter 8 of +2-A
7. Hema ltd. Invited application for 10,000 shares of Rs 100 each payable as follows:

On application
Rs 20

On allotment
Rs 30

On first call
Rs 20

On final call
 Rs 30

The solution of Question 7 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

Bank A/c
Dr.
 
2,00,000

To equity share application A/c
 
 
 
2,00,000

(Being the application money received )

Equity Share application A/c
Dr
 
2,00,000

To Equity share

Question 8

Question 8 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 8 Chapter 8 of +2-A
8.Marigold ltd. Was registered with an authorized capital of Rs 3,00,000 divided into 3000 shares of Rs 100 each which were offered to the public. Amount payables as Rs 30 per share on the application, Rs 40 per share on the allotment, and Rs 30 per share on the first call. These shares were fully subscribed and all money was duly received. Prepare journal and cash book.
 
The solution of Question 8 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

Question 9

Question 9 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 9 Chapter 8 of +2-A
9. Modern marbles ltd. was registered with an authorized capital of Rs 10,00,000 divided into 7500 equity shares of Rs 100 each 2500 preference shares of 10 each .1000 equity shares and 500; 9% preference shares were offered to the public on the following terms-equity shares payable Rs 10 on the application, Rs 40 on the allotment and the balance in two calls of Rs 25 each. Preference shares are payables Rs 25 on the application, Rs 25 on the allotment and Rs 50 on

Question 10

Question 10 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 10 Chapter 8 of +2-A
10. Shiva and 1,00,000 equity shares of Rs 10 each at a premium of Rs per share. The whole amount was payable on application. The issue was fully subscribed. Pass necessary journal entries.
 
The solution of Question 10 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

Bank A/c
Dr.
 
15,00,000

To equity share application A/c
 
 
 
15,00,000

(Being the application money received )

Equity Share application A/c
Dr
 
15,00,000

Question 11

Question 11 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 11 Chapter 8 of +2-A
11. Seema ltd. Offered for subscription 10,000 shares of Rs 25 each payable Rs 5 per share on the application, Rs 10 per share on the allotment ( including Rs 5 per share as premium )Rs 5 per share as the first call on the shares and the balance in two equal amounts at an interval 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

Question 12

Question 12 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 12 Chapter 8 of +2-A
12. Bharat ltd. was incorporated with a capital of Rs 2,00,000 divided into shares of Rs 10 each. 2,000 shares were offered for subscription and out of these,1,800 shares were applied for and allotted.Rs 3 per share (including Rs 1 premium) on an allotment, Rs 2 per share on the first call. All money was received.Give necessary journal entries and show share capital in the balance sheet. 
The solution of Question 12 Chapter 8 of +2-A: -

Date  
Particulars
L.F.

Question 13

Question 13 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 13 Chapter 8 of +2-A
13. The authorized capital of Suhani ltd. Is Rs 4500000 divided into 30000 shares of Rs 150 each at a premium of Rs 10 per share .the amount was payable as follows :Rs50 per share on the application, Rs 40 per share on the allotment (including premium ), Rs 30 per share on the first call, and balance on the final call. Public applied for 14000 shares. All money was duly received. Prepare an extract balance sheet of Suhani ltd. Per schedule III, part I of the compan

Question 14

Question 14 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 14 Chapter 8 of +2-A
14. A company invited applications for 75,000 equity share of 100 each. The application money received @Rs 30 per share was Rs 27,00,000. name the kind of subscription. List the three alternatives for allotting these shares.
The solution of Question 14 Chapter 8 of +2-A: - 
In the case of this company, This type of share subscription is known as the oversubscription of shares.It’s a kind of subscription that happens because of the number of shares were subscribed b

Question 15

Question 15 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 15 Chapter 8 of +2-A
15. Sangam ltd. Invited applications for 10,000 equity shares of Rs 100 each at par. The amount was payable on application. The issue was oversubscribed by 2000 shares and allotment was pro-rata basis. Pass necessary journal entries.(NOTE: application money not given in the question that’s why we assumed application money @RS 20 per share, allotment money @Rs 10 per share )
The solution of Question 15 Chapter 8 of +2-A: -

Date  
Particulars
L.F.

Question 16

Question 16 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 16 Chapter 8 of +2-A
16. Citizen watches ltd invited applications for 50000 shares of Rs 10 each payable on Rs 3 on application ,Rs 44 on allotment and balance on first and final call. Application 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. 
The solution of Question 16 Chapter 8 of +2-A: -

Date  
Particulars
L.F.
Debit
Credit

Question 17

Question 17 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 17 Chapter 8 of +2-A
17. Arti ltd. Offered for subscription 20,000 shares of Rs 20,000 of 10 each payable Rs 3 on the application , Rs 5 on allotment and balance on first and final call. The application was received for 30,000 shares. Letters of regret were issued to applicants for 5000 shares and their applications money was refunded. Application money refunded. Application money for other 5000 shares was applied towards the payment for allotment money. The balance of allotment money

Question 18

Question 18 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 18 Chapter 8 of +2-A
18. Eastern company Limited, having an authorized capital of Rs 1,00,000 divided into shares of Rs 10 each, issued 50000 shares at a premium of Rs 3 per share payable as follow:

On application
Rs 3 per share

On allotment(including premium )
Rs 5 per share

On the first call (due three months after allotment) and the balance as and when required.
Rs 3 per share

Applications were received for 60,000 shares and the directions allotted the shares as follows:

Question 19

Question 19 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 19 Chapter 8 of +2-A
19. Varun ltd. Issued Rs 1,00,000 shares of Rs 100 each at a premium of Rs 20 for subscription payables as :

On application
Rs 10  per share

On allotment(including premium )
Rs 40 per share + Rs 10 of premium

On the first and final call.
Rs 50 per share +Rs 10 of premium

Overpayment on the application was to be applied towards the amount due on allotment and overpayment on the application were to be returned issue was t be returned issue was oversub

Question 20

Question 20 Chapter 8 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 20 Chapter 8 of +2-A
20. Sugandh ltd issued 60,000 Shares of Rs 10 each at a premium of RS 2 per share payables as Rs 3 on the application , Rs 5( including premium) on the allotment and the balance on first and final call. The application was 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 2000 shares.
Nil…

Mohan, who had applied for 800 shares

Particulars	Note	Figures as at the end of the Previous Reporting Period
Balance Sheet
(1)	(2)	(3)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital	1	44,90,000

Particulars	Details	Amount
Share capital
Authorized capital
50,000 Equity share of Rs 100 each		50,00,000
Issued capital
50,000 equity shares of Rs 100 each
Subscribed capital
Subscribed and fully paid-up
45,000 equity shares of Rs 100 each		44,50,000
Subscribed but not fully paid-up
500 equity shares of Rs 100 each	50,000
Less: calls-in-arrears[(500*20)]	10,000	40,000
		44,90,000

T.S. Grewal 12 Class Book Keeping Part - A - Vol. 2 Solutions Chapter No. 8 - Company Account –Accounting of Share capital - T.S. Grewal - XII

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Question 1 Chapter 8 of +2-A - T.S. Grewal 12 Class

The solution of Question 1 Chapter 8 of +2-A: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Question 2 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 3 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 4 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 5 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 6 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 7 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 8 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 9 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 10 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 11 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 12 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 13 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 14 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 15 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 16 Chapter 8 of +2-A - T.S. Grewal 12 Class

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Question 42 Chapter 8 of +2-A - T.S. Grewal 12 Class

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Question 59 Chapter 8 of +2-A - T.S. Grewal 12 Class

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Question 71 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 72 Chapter 8 of +2-A - T.S. Grewal 12 Class