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NCERT · Class 12 · Accountancy

Unit 1: Accounting for Share Capital

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Numerical Questions for NCERT Accountancy Solutions Part 2 Class 12 Chapter 1

24 questions
Q1Written answer

Anish Limited issued 30,000 equity shares of ₹ 100 each payable at ₹ 30 on application, ₹ 50 on allotment and ₹ 20 on Iast and final call. All money was duly received.

Record these transactions in the journal of the company.

 

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Worked solution
Books of Anish Limited

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

 ₹
  Bank A/c Dr. 9,00,000
To Equity Share Application A/c 9,00,000
(Application money received on application for 30,000 equity shares @ ₹ 30 per share)
Equity Share Application A/c Dr. 9,00,000
To Equity Share Capital A/c 9,00,000
(Share Application money transferred to Share Capital

Account)
Equity Share Allotment A/c Dr. 15,00,000
To Equity Share Capital A/c 15,00,000
(Allotment money due on 30,000 @ ₹ 50 per share)
Bank A/c Dr. 15,00,000
To Equity Share Allotment A/c 15,00,000
(Share Allotment money received for   30,000 shares @

₹ 50 per share)
Equity Share First and Final Call A/c Dr. 6,00,000
To Equity Share Capital A/c 6,00,000
Share First and Final call due on 30,000 shares @ ₹ 20

per share)
Bank A/c Dr. 6,00,000
To Equity Share First and Final Call A/c 6,00,000
(Share First and Final Call money received for 30,000

shares @ ₹20 per share)
Q2Written answer

The Adersh Control Device Ltd was registered with the authorised capital of ₹ 3, 00,000 divided into 30,000 shares of ₹ 10 each, which were offered to the public. Amount payable as ₹ 3 per share on application, ₹ 4 per share on allotment and ₹ 3 per share on first and final call. These share were fully subscribed and all money was dully received. Prepare journal and Cash Book.

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Worked solution
Books of Adersh Control Device Ltd

 

Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
  Equity Share Application A/c Dr. 90,000
To Equity Share Capital A/c 90,000
(Share Application money for 30,000 shares @ ₹ 3 per share

transferred to Share Capital Account)
Equity Share Allotment A/c Dr. 1,20,000
To Equity Share Capital A/c 1,20,000
(Share Allotment money due on 30,000 @ ₹ 4 per share)
Equity Share First and Final Call A/c Dr. 90,000
To Equity Share Capital A/c 90,000
(Share First and Final Call due on 30,000 @ ₹ 3 per share)
Cash Book (Bank Column)
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
Equity Share Application 90,000
Equity Share Allotment 1,20,000
Equity Share First and Final Call 90,000 By Balance c/d 3,00,000
3,00,000 3,00,000
   
Q3Written answer

Software solution India Ltd inviting application for 20,000 equity share of ₹ 100 each, payable ₹ 40 on application, ₹ 30 on allotment and ₹ 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.

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Worked solution
Books of Software Solution India Ltd.

Journal
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
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
(Application money transferred to Equity Share Capital for 20,000 shares @ ₹ 40 and ₹ 4,00,000 is adjusted towards allotment)
Equity Share Allotment A/c Dr. 6,00,000
To Equity Share Capital A/c 6,00,000
(Equity Share Allotment money due on 20,000 @ ₹ 30

per share)
Equity Share First and Final call A/c Dr. 6,00,000
To Equity Share Capital A/c 6,00,000
(Equity share on First and Final call due on 20,000 @

₹ 30 per share)
Cash Book (Bank Column)
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
Equity Share Application 12,80,000 Equity Share Application 80,000
Equity Share Allotment 2,00,000 Balance c/d 20,00,000
Equity Share First and Final Call 6,00,000
20,80,000 20,80,000

Working Note:

Amount due on Allotment for 20,000 shares @ ₹ 30 per share 6,00,000
Money adjusted on application 10,000 shares @ ₹ 40 each 4,00,000
Money to be received on Allotment 2,00,000
Q4Written answer

Rupak Ltd. issued 10,000 shares of ₹ 100 each payable ₹ 20 per share on application, ₹ 30 per share on allotment and balance in two calls of ₹ 25 per share. The application and allotment money were duly received. On first call all member pays their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made.

Give journal entries and prepare cash book.

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Worked solution
Books of Rupak Ltd.

 

Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
  Share Application A/c Dr. 2,00,000
To  Share Capital A/c 2,00,000
(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
(Allotment money due on 10,000 shares @ ₹ 30 per share)
Share First Call A/c Dr. 2,50,000
To Share Capital A/c 2,50,000
(Share First Call due on 10,000 shares @ ₹ 25 per share)
Calls in Arrears A/c Dr. 5,000
To Share First Call A/c 5,000
(Call in arrears on 200 shares @ ₹ 25 per share)
Cash Book (Bank Column)
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
Share Application 2,00,000
Share Allotment 3,00,000
Share first call 2,45,000 By Balance c/d 7,57,500
Calls in Advance 12,500
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 @ ₹ 25 per Share (5,000)
Money Received on First Call 2,45,000
Add: Calls received in advance on 500 shares @ ₹25 per share 12,500
  2,57,500
Q5Written answer

Mohit Glass Ltd. issued 20,000 shares of ₹ 100 each at ₹ 110 per share, payable ₹ 30 on application, ₹ 40 on allotment (including Premium), ₹ 20 on first call and ₹ 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received.

Give journal entries.

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Worked solution
Books of Mohit Glass Ltd.

 

Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
  Bank A/c Dr. 7,20,000
To Share Application A/c 7,20,000
(Application money received on application for 24,000 shares @ ₹ 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
(Share Application of 20,000 shares @ ₹ 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
(Allotment money due on 20,000 shares @ 40 per share including

₹ 10 for premium)
Bank A/c Dr. 8,00,000
To Share Allotment A/c 8,00,000
(Allotment money received on 20,000 shares @ ₹ 40 per share)
Share First Call A/c Dr. 4,00,000
To Share Capital A/c 4,00,000
(Share First Call money due on 20,000 shares @ ₹ 20 per share)
Bank A/c Dr. 4,00,000
To Share First Call A/c 4,00,000
(Share First Call money received on 20,000 shares @ ₹ 20 per

share)
Share Final Call A/c Dr. 4,00,000
To Share Capital A/c 4,00,000
(Share Final Call money due on 20,000 shares @ ₹ 20 per share)
Bank A/c Dr. 4,00,000
To Share Final Call A/c 4,00,000
(Share Final Call money received on 20,000 shares @ ₹ 20 per share)
Q6Written answer

A limited company offered for subscription of 1, 00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. 2, 00,000. 10% Preference shares of ₹ 10 each at par.

The amount on share was payable as under:

 

  Equity Shares Preference Shares
On Application ₹ 3 per share ₹ 3 per share
On Allotment ₹ 5 per share ₹ 4 per share
  (including a premium)  
On First Call ₹ 4 per share ₹ 3 per share

All the shares were fully subscribed, called-up and paid.

Record these transactions in the journal and cash book of the company:

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Worked solution
Books of A Ltd.

 

Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
  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
To 10% Preference Share Capital A/c 6,00,000
(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 Allotment A/c 8,00,000
(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
(Amount on First and Final call due)
Cash Book( Bank Column)
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
Equity Share Application 3,00,000
10% Preference Share Application 6,00,000
Equity Share Allotment 5,00,000  
10% Preference Share Allotment 8,00,000
Equity Share First and Final Call 4,00,000  Balance c/d 32,00,000
10% Preference Share First & Final Call 6,00,000  
32,00,000 32,00,000
 
Q7Written answer

Eastern Company limited, having an authorised capital of ₹ 10, 00,000 in shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:

 

On Application ₹ 3 per share
On Allotment (including premium) ₹ 5 per share
On first call (due three months after allotment) and the balance as and when required.  

₹ 3 per share

 

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

(a) Applicants for 40,000 shares received shares, in full.

(b) Applicants for 15,000 shares received an allotment of 8,000 shares.

(c) Applicants for 500 shares received 200 shares on allotment, excess money being returned.

 

All amounts due on allotment were received.

The first call was duly made and the money was received with the exception of the call due on 100 shares.

Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.

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

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Books of Eastern Company Limited
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
Share Application A/c Dr. 1,80,000
To Share Capital A/c 1,50,000
To Share Allotment A/c 30,000
(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
(Allotment money due on 50,000 share @ ₹ 5 per share including ₹ 3 security premium)
Share First Call A/c Dr. 1,50,000
To Share Capital A/c 1,50,000
(First call due on 50,000 share @ ₹ 3 per share)
Cash Book (Bank Column)
Dr. Cr.
Date Particulars J.F. Amount

₹

 Date Particulars J.F. Amount

₹
Share Application 1,80,000
Share Allotment 2,20,000 Balance c/d 5,49,700
Share First Call 1,49,700
5,49,700 5,49,700
Eastern Company Limited
Balance Sheet
Particulars Note No. Amount 

(₹)
I. Equity and Liabilities
1.Shareholders’ Funds
a. Share Capital 1 3,99,700
b. Reserves 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 ACCOUNTS

Note No. Particulars Amount  

(₹)
1 Share Capital
Authorised Share Capital
1,00,000 shares of ₹ 10 each 10,00,000
Issued Share Capital
 50,000 shares of ₹ 10 each 5,00,000
Subscribed, Called up and Paid up Share Capital
 50,000 shares of ₹ 10 each, ₹ 8 called-up 4,00,000
Less: Calls-in-Arrears      (300) 3,99,700
2 Reserves and Surplus
Securities Premium 1,50,000
3 Cash and Cash Equivalents
Cash at Bank 5,49,700
Q8Written answer

Sumit Machine Ltd. issued 50,000 shares of ₹. 100 each at premium of 5%. The shares were payable ₹. 25 on application, ₹. 50 on allotment and ₹. 30 on first and final call. The issue was fully subscribed and money was duly received except the final call on 400 shares. The premium was adjusted on allotment.

Give journal entries and prepare balance sheet.

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Worked solution
Books of Sumit Machine Ltd.
Date Particulars L.F. Debit

Amount

(₹)

 Credit

Amount

(₹)
Bank A/c Dr. 12,50,000
To Share Application A/c 12,50,000
(Share Application money received on application for 50,000 shares @ ₹25 per share)
Share Application A/c Dr. 12,50,000
To Share Capital A/c 12,50,000
(Share Application money of 50,000 shares transferred to Share Capital Account)
Share Allotment A/c Dr. 25,00,000
To Share Capital A/c 22,50,000
To Securities Premium A/c 2,50,000
(Share Allotment money due on 50,000 shares @ ₹45 each at a premium of ₹5)
Bank A/c Dr. 25,00,000
To Share Allotment A/c 25,00,000
(Allotment money received for 50,000 shares @ ₹50 per share)
Share First and Final Call A/c Dr. 15,00,000
To Share Capital A/c 15,00,000
(Share First and Final call due on 50,000 shares @ ₹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
(Share First and Final Call received except 400 shares)
Sumit Machine Ltd.
Balance Sheet
Particulars Note No. Amount 

(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
 a. Share Capital 1 49,88,000
b. Reserves and Surplus 2 2,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total 52,38,000
II. Assets
  1. Non-Current Assets
  1. Current Assets
a. Cash and Cash Equivalents 3 52,38,000
Total 52,38,000

​

NOTES TO ACCOUNTS

Note
No.		 Particulars Amount  

(₹)
1 Share Capital
Authorised Share Capital
…….. shares of ₹ 100 each –
Issued Share Capital
 50,000 shares of ₹ 100 each 50,00,000
Subscribed, Called-up and Paid-up Share Capital
50,000 shares of ₹ 100 each 50,00,000
Less: Calls-in-Arrears   (12,000) 49,88,000
2 Reserves and Surplus
Securities Premium Reserve 2,50,000
3 Cash and Cash Equivalents
Cash at Bank 52,38,000
Q9Written answer

Kumar Ltd. purchased assets of ₹. 6, 30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of ₹. 100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%?

Case (a)

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Worked solution
Books of Kumar Ltd
Date Particulars L.F. Debit

Amount

(₹)

 Credit

Amount

(₹)
Sundry Assets A/c Dr. 6,30,000
To Bhanu Oil Ltd 6,30,000
(Assets purchased from Bhanu Oil Ltd.)
(a) Bhanu Oil Ltd Dr. 6,30,000
To Share Capital A/c 6,30,000
(6,300 shares issued at par to Bhanu Ltd.)

10

11

Case (b)

Date Particulars L.F. Debit

Amount

(₹)

 Credit

Amount

(₹)
Sundry Assets A/c Dr. 6,30,000
To Bhanu Oil Ltd 6,30,000
(Assets purchased from Bhanu Oil Ltd.)
Bhanu Oil Ltd Dr. 6,30,000
To Share Capital A/c 5,25,000
To Securities Premium A/c 1,05,000
(5,250 share are issued at 20% premium to Bhanu Ltd. in consideration of assets purchased)

12

13

Q10Written answer

Bansal Heavy machine Ltd purchased machine worth ₹ 3, 20,000 from Handa Trader. Payment was made as ₹ 50,000 cash and remaining amount by issue of equity share of the face value of ₹ 100 each fully paid at an issue price of ₹ 90 each.

Give journal entries to record the above transaction.

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Worked solution
Book of Bansal Heavy Machine Ltd

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
  Machinery A/c Dr. 3,20,000
To Cash A/c 50,000
To Handa Traders 2,70,000
(Machine purchased from Handa Traders paid ₹ 50,000 in

cash immediately)
Handa Trader Dr. 2,79,000
Discount on Issue of Shares A/c Dr. 30,000
To Share Capital A/c 3,00,000
(3,000 share issued at ₹ 90 face value of ₹ 100 each to

Handa Traders in consideration of amount due to him for

machinery purchased)

Working Notes:-

1. Number of shares issued

14