Question 1

Question 01 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 01 Chapter 8 of +2-Part-1
1. (Types of Capital) Alfa Ltd was incorporated with an authorized capital of Rs. 50,00,000 divided in to equity shares of Rs. 100 each. It issued Rs. 40,000 shares to the public for cash. Applications were received for Rs. 35,000 shares. The company called up Rs. 80 per share. Ashok who has allotted Rs. 1,000 shares did not pay call money @ Rs. 10 per share.Show the amount for various categories of capital.
The solution of Question 01 Chapter 8 of +2 Part-1:

Question 2

Question 02 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 02 Chapter 8 of +2-Part-1
2. (Journal Entries) Harry Ltd., issued Rs. 3,00,000 shares of Rs. 10 each, payable as follows: Rs. 3 on application, Rs. 5 on allotment and Rs. 2 on first and final call All money were duly received. Pass journal entries.
The solution of Question 02 Chapter 8 of +2 Part-1: -
https://youtu.be/8L3kF495x-I?si=fzA6ph8O8XSL_cqk
Journal

Date  
Particulars
L.F.
Debit
Credit

a)
Bank A/c
Dr.
 
9,00,000

To Share Application A/c
 
 
 
9,00,000

(Being appl

Question 3

Question 03 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 03 Chapter 8 of +2-Part-1
3. (Balance Sheet/Notes to Accounts) A company has received applications for 30,000 equity shares of Rs. 10 each and 20,000 12% preference shares of Rs. 10 each. The company called up Rs. 8 on per equity shares and Rs. 6 on per preference shares. Ajit did not pay Rs. 3 per share on his 3,000 shares and Sumit did not pay Rs. 5,000 on his preference shares. Show the capital is Balance Sheet .
The solution of Question 03 Chapter 8 of +2 Part-1: -
https://youtu.be

Question 4

Question 04 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 04 Chapter 8 of +2-Part-1
4. (Journal/Balance Sheet) Amritsar company has an authorized capital of Rs. 10,00,000 divided in to Rs. 100 share. It invited applications for 3,000 shares. Amount is payable; Rs. 25 on application; Rs. 35 on allotment and balance in two equal installments on first call and final call. The money was duly received on 3,000 shares. Show entries in journal and prepare Balance Sheet.
The solution of Question 04 Chapter 8 of +2 Part-1: -
https://youtu.be/RO9wMjDEV

Question 5

Question 05 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 05 Chapter 8 of +2-Part-1
5. (Issue of Pref. Shares) EX company invited applications for 4,000 10% preference shares of Rs. 10 each. It demanded 20% of face value on application and 50% of balance on allotment and the remaining on final call. Applications were received for equal number of shares. Pass journal entries.
The solution of Question 05 Chapter 8 of +2 Part-1: -
https://youtu.be/RO9wMjDEVLQ?si=1gsA5pnElnvO-ZlY
Face value of share = 10 Application Money = 20 % of Rs. 10 = Rs. 2

Question 6

Question 06 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 06 Chapter 8 of +2-Part-1
6. (Fully Subscribed/Journal Entries) Sky Rockets Ltd. make an issue of 10,000 equity shares of Rs. 100 each, payable Rs. 20 on application, Rs. 40 on allotment and Rs. 40 on call. All the shares are subscribed and amounts duly received. Pass journal entries to give effect to these.
The solution of Question 06 Chapter 8 of +2 Part-1: -
https://youtu.be/RO9wMjDEVLQ?si=1gsA5pnElnvO-ZlY
Journal

Date  
Particulars
L.F.
Debit
Credit

a)
Bank A/c
Dr.
 
2,00,000

Question 7

Question 07 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 07 Chapter 8 of +2-Part-1
7. (Both Classes of Shares/Cash Book) Y Ltd. was formed with an authorised capital of Rs. 40,00,000 divided into 3,00,000 equity shares of Rs. 10 each and 10,000 Preference shares of Rs. 100 each. Both classes of shares were issued to the public in full and they are to be paid as follows:

Equity shares               
Preference shares

Application
20 percent
25 percent

Allotment
30 percent
25 percent

First call 
50 precent
25 percent

Second cal

Question 8

Question 08 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 08 Chapter 8 of +2-Part-1
8. (Journal Entries/Cash Book) Star Company issued 80,000 12% preference shares of Rs. 100 each payable Rs. 40 on application; Rs. 20 on allotment and Rs. 40 on final call. Applications were received for 70,000 shares. The amount was duly received. Prepare journal and cash Book.
The solution of Question 08 Chapter 8 of +2 Part-1: -
https://youtu.be/LY51mFQVIvM?si=szcD5zAELGszx6V_
Journal

Date  
Particulars
L.F.
Debit
Credit

a)
12% Pref. Share Application

Question 9

Question 09 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 09 Chapter 8 of +2-Part-1
9. (Under subscription) A limited company issued 10,000 shares of 100 each payable asunder:Rs. 20 on applicationRs. 30 on allotmentRs. 50 on final call.The public applied for 9,000 shares which were allotted. All the money due on shares were received. Pass journal entries in the books of the company and prepare Cash Book and Balance Sheet.
The solution of Question 09 Chapter 8 of +2 Part-1: -
https://youtu.be/9cve6C_7bUg?si=nbgT-Hyd6trR873G
Journal

Date  
P

Question 10

Question 10 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 10 Chapter 8 of +2-Part-1
10. (Issue at Premium/Call in Arrears) Amritsar Fan Company issued 25,000 shares of Rs. 10 each at 20% premium Applications for 20,000 shares were received. Amount was payable as follows:On application Rs. 3On allotment Rs. 6 ( Premium 2)On first & final call Rs. 3On 2,000 shares final call was not received. Pass journal entries and prepare cash book.
The solution of Question 10 Chapter 8 of +2 Part-1: -
https://youtu.be/9cve6C_7bUg?si=nbgT-Hyd6trR873G
Jou

Question 11

Question 11 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 11 Chapter 8 of +2-Part-1
11. (Oversubscription) Punjab Spinning Mill offered 70,000 shares of 100 each at a premium of 20 per share to public payable as follows:Rs. 35 on applicationRs. 65 on allotment (including premium) Rs. 20 on final call.Applications for 70.000 shares were received. Prepare Journal.
The solution of Question 11 Chapter 8 of +2 Part-1: -
https://youtu.be/GztDKfgKgW8?si=_j-lE09YIxDG0Bis
Journal

Date  
Particulars
L.F.
Debit
Credit

a)
Bank A/c
Dr.
 
24,50,000

Question 12

Question 12 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 12 Chapter 8 of +2-Part-1
12. (Premium in Application/Allotment) X Ltd. issued 10,000 shares of 10 each at a premium of Rs. 2 per share, payable as Rs. 2 per share on the application; Rs. 6 (including premium Re. 1) per share on allotment and Rs. 4 (including premium Re. 1) per share on final call. The issue was over-subscribed to the extent of 15,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and excess application money was adjusted towards allotment and cal

Question 13

Question 13 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 13 Chapter 8 of +2-Part-1
13. (Issue Share at Par/Premium) X Y Z Co. Ltd. issued 1,00,000 equity shares of 10 at a premium of 2 per share and 10,000 10 % preference shares of 100 each payable as follows :

Equity shares 
Preference share

On application
2
20

On allotment 
5(including premium )
30

On first call 
3
30

On second  call 
2
20

All the shares offered were subscribed for by the public and cash duly received.Pass necessary journal entries to record the above issu

Question 14

Question 14 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 14 Chapter 8 of +2-Part-1
14. (Call in Arrears) Gujrat Steels Ltd., invited applications for 60,000 equity shares of Rs. 10 each. Amount being payable Rs. 3 on application : Rs. 4 on allotment and balance on final call. Applications for 50,000 shares were received. Expenses on issue were Rs. 4,000. Final call was not received on 500 shares. Pass entries in Journal.
The solution of Question 14 Chapter 8 of +2 Part-1: -
https://youtu.be/OvN-mL0nuFk?si=LoQ4vfvete8Ix6Kf
Journal

Date  
P

Question 15

Question 15 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 15 Chapter 8 of +2-Part-1
15. (Call in arrears/Payment of call with interest) Satyam Computers issued 80,000 shares of Rs. 10 each, payable as follows:On application Rs. 2On allotment Rs. 3On first call Rs. 2 (Two months after allotment)On Second & final call Rs. 3 (One month after first call)One share holder did not pay first call on his 4,000 shares, which he paid with interest @9%at the time of second and final call. Another shareholder did not pay final call on his 1,000)shares

Question 16

Question 16 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 16 Chapter 8 of +2-Part-1
16. (Advance Money Received and Interest on call in Advance) A company issued 25,000 equity shares of 10 each payable as follows :On application Rs. 3; on allotment Rs. 5 and on call Rs. 2The time gap between allotment and call is 2 months. Applications for 28,000 shares were received. Excess money received on applications was refunded. One shareholder paid call money on his 2,000 shares at the time of allotment. Interest on calls in advance is paid @ 12% p.a.

Question 17

Question 17 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 17 Chapter 8 of +2-Part-1
17. (Call in Arrears/Cash Book/Balance Sheet) Delhi Milk Supply Co. issued prospectus for 40,000 shares of Rs. 10 each. Amount is payable Rs. 2 on application ; Rs. 4 on allotment, Rs. 3 on first call and Rs. 1 on second and final call.Ashok did not pay first call and final call on 2,000 shares. While Anil did not pay final call on his 1,000 shares.Prepare Journal Cash Book and Balance Sheet.
The solution of Question 17 Chapter 8 of +2 Part-1: -
https://youtu.

Question 18

Question 18 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 18 Chapter 8 of +2-Part-1
18. (Expenses on Issue) Hemant Textiles Ltd. having a nominal capital of Rs. 10,00,000 in shares of Rs. 100 each invited applications for 5,000 shares payable as follows :On application Rs. 20On allotment Rs. 25On first call Rs. 25On second and final call Rs. 30All the shares were subscribed and allotment made. All the money was received except final call on 100 shares. Expenses of issue came to 10,000. They are to be written off in the same year. Pass journal

Question 19

Question 19 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 19 Chapter 8 of +2-Part-1
19. (Call in Arrears/Journal Entries/B/S) Bharat Industries Ltd. issued 1,50,000 equity shares of Rs. 15 each payable Rs. 3 on application, Rs. 7 on allotment and the balance on two calls, each of equal amount.Applications were received for 1,25,000 shares which were duly allotted. A shareholder Holding 500 shares paid in full on allotment, while another shareholder holding 200 shares failed to pay call moneys. Give journal entries to record the above transact

Question 20

Question 19 A Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Sarbjit Singh · Accepted Answer

Question 19 A Chapter 8 of +2-Part-1
19A. (Calls in Arrear and Calls in Advance) A Ltd. issued 20,0000 equity shares of Rs. 10 each at a premium of 10% payable Rs. 2 on Application, Rs. 4 on Allotment (Including premium); Rs. 3 on first call and Rs. 2 on Final call . All the shares were duly subscribed, allotted and both the calls were made.A holder of 400 shares did not pay final call while another holder of 500 shares paid the entire sum due on allotment. Pass journal entries and prepare Bala

Particulars		Amount

Authorized capital
50,000 shares of Rs. 100 each		50,00,000
Issued capital
40,000 shares of Rs. 100 each		40,00,000
Subscribed capital
35,000 shares of Rs. 100 each		35,00,000
Called up capital
35,000 shares of Rs. 100 each @ Rs. 80 each		28,00,000
Paid up capital
35,000 shares of Rs. 100 each @ Rs. 80 per share called up		28,00,000
Less : Calls in Arrears (1,000X10)		10,000
		27,90,000
Unissued capital
50,00,000 – 40,00,000		10,00,000
Unissued capital
40,00,000 – 35,00,000		5,00,000
Unissued capital
35,00,000 – 28,00,000		7,00,000

USHA Publication +2 Part 1 Solutions Chapter No. 8 - Company Accounts (Share Capital)

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Question 01 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

The solution of Question 01 Chapter 8 of +2 Part-1: -

Question 02 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 03 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 04 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 05 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 06 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 07 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 08 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 09 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 10 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 11 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 12 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 13 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 14 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 15 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 16 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 17 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 18 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 A Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 B Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 C Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19D Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 20 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 21 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 22 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 23 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 24 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 25 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 26 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 46 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 27 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 28 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 29 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 30 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 31 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 32 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 33 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 34 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 35 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 36 Chapter 8 of +2-Part-1 - USHA Publication

Question 3 Chapter 8 of +2-Part-1 - USHA Publication

Question 38 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 39 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 40 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 41 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 42 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 43 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 44 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 45 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 47 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 48 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 49 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 50 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 51 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 52 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 53 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1

Sarbjit SinghB.Com and M.Com