Worksheet: Accounting for Share Capital | Accountancy Class 12 - Commerce PDF Download

Very Short Questions (Q1–Q15)

Q1: Kumar Ltd purchased assets worth ₹6,30,000 and agreed to issue fully paid equity shares of ₹100 each in full payment. Calculate the number of shares issued (at par and at 20% premium).

Q2: Bansal Heavy Machine Ltd purchased machinery worth ₹3,80,000 by paying ₹50,000 in cash and the balance by issuing equity shares of ₹100 each at ₹110. Calculate the number of shares issued.

Q3: A company forfeited 4,000 equity shares of ₹10 each (fully called up) on which ₹3 per share had been paid on application. 2,000 of these forfeited shares were reissued as fully paid for ₹18,000. Pass necessary journal entries.

Q4: A Ltd issued 1,000 equity shares of ₹10 each at a 10% discount, payable ₹4 on application, ₹3 on allotment, and the balance on first and final call. All shares were fully subscribed and money duly received. Pass the journal entries.

Q5: H Ltd issued 5,000 equity shares of ₹100 each. Payable: ₹10 on application, ₹60 on allotment, ₹30 on first and final call. All shares were subscribed, and money received, except the first and final call on 100 shares. Pass the journal entries for the issue.

Q6: Disha Ltd forfeited 500 equity shares of ₹100 each issued at 10% premium (₹90 called up) when shareholders failed to pay ₹30 per share on allotment (including premium) and ₹20 on the first call. Out of these, 300 shares were reissued at ₹80 per share fully paid. Pass journal entries.

Q7: Random Ltd took over assets of ₹45,00,000 and liabilities of ₹6,40,000 for ₹36,00,000, settling by issuing 12% preference shares of ₹100 each at 15% premium and paying the rest by draft. Pass the entries.

Q8: Annexe Ltd issued 100,000 equity shares of ₹10 each at 10% premium, payable in full on application. Applications were received for 300,000 shares, and shares were allotted on a pro-rata basis. Pass the necessary journal entries.

Q9: Ganga Ltd invited applications for 10,000 equity shares of ₹10 each, payable ₹2 on application, ₹3 on allotment, ₹3 on first call, and ₹2 on final call. Applications were received for 15,000 shares, of which 3,000 applications were rejected and the rest were allotted on a prorata basis. Journalise these transactions.

Q10: Mukund Ltd invited 50,000 equity shares of ₹10 each at a 10% premium, payable ₹3 on application, ₹3 (incl. premium) on allotment and the balance on the first and final call. Applications were received for 120,000 shares; allotment was done on a prorata basis. Pass the journal entries.

Q11: Sunstar Ltd has an authorised capital of ₹20,00,000 divided into equity shares of ₹10 each. It issued 60,000 shares; applications for 58,000 shares were received. All calls were made and duly received except the final call of ₹3 per share on 2,000 shares, which were forfeited. Present the Share Capital in the Balance Sheet and prepare the Notes on Share Capital.

Q12: Ashoka Ltd issued 1,000 equity shares of ₹20 each at a ₹4 premium, forfeited all shares for non-payment of the final call of ₹2. It reissued 400 of the forfeited shares at ₹14 per share and 200 shares at ₹20 per share. Pass the journal entries and show the amount transferred to Capital Reserve and the balance in Share Forfeiture Account.

Q13: Bhushan Oil Ltd forfeited 200 shares of ₹100 each issued at a ₹10 premium for non-payment of allotment of ₹60 (first & final call ₹20 not made). The forfeited shares were reissued at ₹70 each, fully paid. Pass necessary journal entries.

Q14: Lotus Ltd invited applications for 80,000 equity shares of ₹10 each at a ₹4 premium. Payable: ₹1 application, ₹5 on allotment (including premium), ₹9 on first call (including premium). Applications for 140,000 shares were received and allotted prorata; excess application money was adjusted against allotment. Rajiv applied for 1,400 shares but failed to pay the allotment; his shares were forfeited. These forfeited shares were later reissued at ₹9 each, fully paid. Journalise the above.

Q15: Tulip Ltd. invited applications for issuing 2,40,000 equity shares of ₹10 each at a premium of ₹4 per share.
The amount was payable as follows:

• On Application – ₹4 per share (including ₹2 premium)
• On Allotment – ₹4 per share
• On First and Final Call – ₹6 per share (including ₹2 premium)

Applications for 3,00,000 shares were received and pro-rata allotment was made to all applicants. Excess application money received was adjusted towards sums due on allotment.
All monies were duly received except from Rohini, who had applied for 7,500 shares and failed to pay the allotment and first & final call.You are required to:
Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-Arrears and Calls-in-Advance Account, wherever necessary.

Short Questions (Q16–Q35)

Q16: Naman Ltd issued 20,000 equity shares of ₹100 each; ₹25 on application, ₹65 on allotment, ₹10 on first & final call. All shares were fully subscribed and money duly received, except that 100 shares did not pay allotment and first call. Pass the journal entries.

Q17: Kishnu Ltd issued 15,000 equity shares of ₹100 each at a ₹10 premium. Payable: ₹30 on application, ₹50 (including ₹10 premium) on allotment, ₹30 on first & final call. All shares were subscribed; Arun (200 shares) failed to pay the first & final call. His shares were forfeited, and later, 150 shares were reissued at ₹105. Pass journal entries and show Capital Reserve.

Q18: Arushi Computers Ltd issued 10,000 equity shares of ₹100 each at 10% premium. Payable: ₹20 on application, ₹70 (including premium) on allotment, and ₹30 on first & final call. All shares were subscribed; Reena (300 shares) paid the application & allotment but failed to pay the call on 150 shares. Her 150 shares were forfeited and reissued at ₹75 per share. Pass the journal entries (give Capital Reserve).

Q19: Raunak Cotton Ltd issued 6,000 equity shares of ₹100 each at a ₹20 premium, payable ₹20 on application, ₹50 on allotment (including premium), ₹30 on first call, and ₹20 on final call. Applications were received for 10,000 shares, and 8,000 were allotted prorata (excess refunded). Rohit (300 shares allotted) failed to pay allotment & calls; Itika (600 shares applied) failed to pay two calls. Both were forfeited. All forfeited shares were sold to Kartika at ₹80 each, fully paid. Pass journal entries.

Q20: Carmen Ltd invited 15,000 equity shares of ₹8 each (payable ₹4 application, ₹2 allotment, balance on call). Applications for 20,000 were received; allotted prorata, all money due called. All money was received except the first & final call on 100 shares. Pass journal entries and prepare the Share Capital Schedule in the Balance Sheet.

Q21: (Application & Allotment Problem) A Ltd invited 50,000 equity shares of ₹10 each at par, payable ₹3 on application and ₹4 on allotment. Applications for 75,000 shares were received; allotment was done prorata. Excess application money was adjusted towards allotment. Pass journal entries. (Ignore call accounts.)

Q22: (Premium Issue) Vani Ltd invited applications for 100,000 equity shares of ₹10 each at 10% premium. Payable: ₹4 on application & allotment (including ₹1 premium), ₹4 on first call, ₹3 on final call. Applications for 150,000 shares were received; allotment prorata (excess adjusted towards calls). Parth (600 shares allotted) did not pay the first call (final call not yet due). Half of his forfeited shares were reissued at ₹8 each fully paid. Pass journal entries (use Calls-in-Arrears/Advance accounts).

Q23: Shaktimaan Ltd invited 100,000 equity shares of ₹10 each at a ₹2 premium. Payable: ₹4 on application (including ₹0.40 premium), ₹5 on allotment, balance on call. Applications for 180,000 shares were received, of which 30,000 applications were rejected and the rest allotted prorata. Manthan (5,000 shares) failed to pay the first & final call; his shares were forfeited, of which 2,000 shares were reissued at a ₹3 premium. Prepare the Cash Book and pass journal entries.

Q24: (Share Capital in BS) Narmada Ltd has an authorised capital of ₹10,00,000 (10,000 shares of ₹10). It invited applications for 80,000 shares; received 75,000. All calls were duly made and received except the first and final call of ₹2 per share on 5,000 shares held by Arti, which were forfeited. Prepare the Share Capital figure in the Balance Sheet (Schedule III) and Notes to Accounts for Share Capital.

Q25: Himalaya Co. Ltd offered 1,20,000 shares of ₹10 each at ₹2 premium (₹3 appl., ₹5 (incl. prem.) allot, ₹2 first call). Applications for 1,50,000 shares were received; 1,20,000 allotted (30,000 rejected). All money received except the second call on 1,000 shares (forfeited and reissued 600 shares at ₹9). Pass entries and show the Capital Reserve.

Q26: Prince Ltd invited applications for 20,000 shares of ₹10 each at a ₹3 premium. Payable: ₹2 appl., ₹5 (incl. ₹3 prem) allot., ₹3 first call, ₹3 final call. Applications for 30,000 shares were received; allotted prorata, excess appl. money adjusted. Mohit (400 shares allotted) failed to pay allotment & first call (forfeited after first call). Joly (600 shares) failed to pay first & second calls (forfeited). Of the forfeited shares, 800 were reissued to Supriya at ₹9 fully paid (including all of Mohit’s shares). Pass journal entries.

Q27: (Rights/Bonus style) Share Capital changes via bonus/rights: The XYZ Co had ₹2,00,000 equity issued (20,000 shares of ₹10, fully paid). It issued 5,000 bonus shares by capitalising reserves. Show the journal entry and updated Share Capital in the BS.

Q28: (Final Call/Forfeiture) Ram holds 100 shares of ₹10 (Rs. 8 called); he paid ₹6. It was forfeited. What is the amount credited to Share Forfeiture on forfeiture? Calculate by journal (Ram’s share account and share forfeiture).

Q29: (Shares for consideration) Meera Traders is acquired by issuing shares: Assets ₹1,50,000, Liab ₹30,000, consideration ₹1,20,000. Balance paid by issuing 12% pref shares of ₹100 @ 15% premium. Pass J/E.

Q30: (Warrants/Call in advance) Lena Ltd issued 1,000 shares @ ₹10, payable 2,3,2. Dev applied for 100 but paid ₹6 in advance on allotment (before due). On allotment, cash received ₹... journalize (treat as call in advance).

Long Questions (Q31–Q35)

Q31: CCL Ltd invited applications for 75,000 equity shares of ₹10 each at a premium of ₹3 per share.
Payable: ₹2 on application, ₹6 (including premium) on allotment, ₹3 on first call, balance on second & final call.
Applications for 1,20,000 shares were received. Out of these, 45,000 applications were rejected, and excess application moneywas  refunded. Full allotment was made to the remaining applicants. All money was received except for Harish, who held 2,000 shares and failed to pay the first call and final call.
Required: Pass journal entries.

Q32: (Continuation of Prince Ltd case – same as Q26)
Prince Ltd invited 20,000 shares of ₹10 each at a ₹3 premium. Applications for 30,000 shares were received and allotted prorata. Mohit (400 shares) failed to pay the allotment & first call. Joly (600 shares) failed to pay the first & second calls. Both sets of shares were forfeited, and 800 shares (including all of Mohit’s) were reissued to Supriya at ₹9 fully paid.
Required: Prepare Share Capital Schedule, show Share Forfeiture and Capital Reserve.

Q33: Himalaya Co. Ltd offered 1,20,000 shares of ₹10 each at ₹2 premium.
Payable: ₹3 on application, ₹5 (including premium) on allotment, ₹2 on first call.
Applications for 1,50,000 shares were received. 1,20,000 were allotted and 30,000 rejected. All money was received except the second call on 1,000 shares. These shares were forfeited, and later 600 shares were reissued at ₹9.
Required: Pass journal entries and prepare Balance Sheet (Share Capital, Forfeiture, Capital Reserve).

Q34: Ajanta Co. Ltd (Nominal capital ₹3,00,000) offered 20,000 shares of ₹10 each payable as follows: ₹2 on application, ₹3 on allotment, 2 calls of ₹2.50 each.
Applications for 24,000 shares were received. 20,000 accepted and 4,000 refunded. Final call on 600 shares remained unpaid, and those shares were forfeited. Out of these, 400 shares were reissued at ₹9 each.
Required: Pass journal entries and prepare Balance Sheet (Share Capital and Share Forfeiture).
(Answer: Capital Reserve ₹2,600, Share Forfeiture ₹12,000)

Q35: Three shareholders failed to pay the second call on their shares:
Amit: 100 shares of ₹10 each (paid only ₹1 application fee)
Bimal: 200 shares of ₹10 each (paid ₹1 application + ₹2 allotment)
Chetan: 300 shares of ₹10 each (paid ₹1 application + ₹2 allotment + ₹3 first call)
The second call of ₹2 was not paid, so all their shares were forfeited. Later, 600 shares were reissued to Kapil at ₹11 fully paid.
Required: Pass journal entries (Share Capital, Calls in Arrears, Share Forfeiture, Reissue).