[CBSE] Q. 92 Accounting for Share Capital Solution of TS Grewal Class 12 (2026-27)

The solution to Question number 92 of the Accounting for Share Capital chapter of TS Grewal Book 2026-27 Edition CBSE Board

Gaurav applied for 5,000 shares of ₹ 10 each at a premium of 2.50 per share. But he was allotted 2,500 shares on pro rata basis. After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 4.50 pe share (including premium) and on his sebsequent failure to pay the first call of ₹ 2 per share, his share were forfeited. These shares were reissued at the rate of ₹ 8 per share credited as fully paid.

Pass Journal entries to record the forfeiture and reissue of shares.

[Ans.: Allotment money due but not recieved – ₹ 3,750.; Forfeited Shares A/c credited – ₹ 12,500; Capital Reserve – ₹ 7,500.]

Solution:-