[CBSE] Q. 94 Accounting for Share Capital Solution of TS Grewal Class 12 (2026-27)

The solution to Question number 94 of the Accounting for Share Capital chapter of TS Grewal Book 2026-27 Edition CBSE Board

Pass necessary Journal entries for forfeiture and reissue of shares in the following cases:

(i) Neon Ltd. forfeited 2,000 shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not yet made. Out of these, 1,500 shares were reissued at ₹ 7 per share, ₹ 8 paid-up.

(ii) Mamta Ltd. forfeited 3,000 shares of ₹ 10 each on which the first call of ₹ 3 per share was not received. The second and final call of ₹ 1 per share was not yet called. Out of these, 2,000 shares were reissued at ₹ 9 per share, ₹ 9 paid-up.

[Ans.: (i) Capital Reserve – ₹ 6,000; (ii) Capital Reserve – ₹ 12,000.]

Solution:-