Yadav Sir Account and Finance Tuition Class

Class 12 Account ( NEB) Sunwal -12 , Bhataudi

Top Hardest Question Collections from Final Account Chapter Based on NEB Syllabus ( Creator : Niraj Yadav )
Q.No. 1 [ For Learning] ( Important Questions) ©Author Niraj Yadav ( Source of data collection: Class 12 Account Asmita’s Publication
and Advance saraswati’s Publication Book )
The following is the Trial balance of a ABC company as on Falgun 17 , 2081:
Particulars Debit (Rs.) Particulars Credit (Rs.)
Good will 56,000 Share Capital 5,00,000
Furniture 4,59,000 Sales revenue 7,00,900
Carriage inward 45,000 Discount 10,000
Carriage outward 56,000 Wages received 80,000
Freight inward 67,000 Unearned Commission 6,000
Freight outward 34,000 6% Debenture 7,80,000
Bank balance 5,79,000 Bills payable 54,000
Tax paid for last year 50,000 Creditors 80,000
Proposed dividend 45,600 Profit and loss Account 7,800
8% Investment 4,50,000 Return Outward 7,000
Opening Stock 56,900 Rent Received 80,000
Purchase 45,000 Advance income 6,300
Wages and salary 60,000 Provision for bad debts 8,700
Salary and wages 80,000 Service Revenue 1,11,600
Interest on loan 34,000
Discount 60,000
Commission 87,000
Ending Inventory 46,000
Return Inward 65,000
Debtors 55,800
Office supplies 1,000
Total 24,32,300 Total 24,32,300
Additional information:
1. Depreciation on furniture @3%
2. Outstanding wages Rs.5,000
3. Prepaid Salary Rs. 4,500
4. Unearned commission was earned Rs. 5,600
5. Transfer to General Reserve Rs. 10,000
6. Bad debts written off Rs. 500
7. Supplies on hand Rs. 200
8. Closing stock book value Rs.1,50,000 whereas it market value Rs. 1,25,000
9. Provision for tax @25% (Only for final account and multi step and its balance sheet )
10. Non-Controlling interest @ 30% (Only for multistep and its balance sheet )
Required:
1. Trading Account, Pro t and loss Account, Pro t and loss appropriation Account, Balance sheet
(Ans: Gross Pro t Rs. 4,89,000, Net Pro t Rs. 3,34,897.5, P/l appro. Rs. 2,37,097.5 , Balance Rs. 17,97,230)
2. Multi step income statement and Vertical Balance sheet
3. Worksheet with Adjustment entries
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Q.No. 2
The following is the Trial balance of a Laxmi Motors Company for the 31st December 2025 :
Particulars Debit (Rs.) Particulars Credit (Rs.)
Prepaid Rent 56,000 Share Capital 5,00,000
Wages and salary 4,59,000 Sales 7,00,900
Carriage on sales 45,000 Other income 10,000
Carriage on purchase 56,000 Share Transfer fee 80,000
Freight on sales 67,000 Commission receive 6,000
Freight on purchase 34,000 6% Bank loan 7,80,000
Cash balance 5,79,000 Bills payable 54,000
Miscellaneous Expenses 50,000 Creditors 80,000
Preliminary expenses 45,600 Retained Earning 7,800
6% Investment 4,50,000 Return Outward 7,000
Opening Stock 56,900 Provision for tax for last 80,000
year
Purchase 45,000 Salary 6,300
Land & building 60,000 Provision for bad debts 8,700
Salary and wages 80,000 Service Revenue 1,11,600
Interest on loan 34,000
Discount 60,000
Commission 87,000
Closing Stock 46,000
Return Inward 65,000
Account Receivable 55,800
Office supplies 1,000
Total 24,32,300 Total 24,32,300
Additional information:
1. Depreciation on building @5%
2. Wages still to be pay Rs.5,000
3. Prepaid Salary Rs. 4,500
4. Unearned commission Rs.5,600
5. Transfer to General Reserve Rs. 10,000
6. Bad debts written off Rs. 500
7. Supplies on hand Rs. 200
8. Closing stock book value Rs.150,000 whereas it market value Rs. 125,000
9. Interest on investment Rs.25000
10. Proposed Dividend Rs. 30000
11. Provision for bad debts @5%
12. Bad debt Rs. 3,000
13. Accrued income / Outstanding income Rs. 500
14. Income tax @ 25% ( only for final account Traditional and modern method )
Required:
1. Trading Account, Pro t and loss Account, Pro t and loss appropriation Account, Balance sheet
2. Multi step income statement and Classi ed Balance sheet
3. Worksheet with Adjustment entries
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Q.No. 3
The following Trial Balance of Hyundai Company as on 31st December 2025 is given:
Particulars Debit (Rs.) Particulars Credit (Rs.)
Opening Stock 1,80,000 Sales 5,00,000
Wages 70,000 Account Payable 1,73,000
Salaries 20,000 Retained Earnings 1,00,000
Purchases 3,00,000 10% debenture 2,00,000
Printings 5,000 Share capital 4,00,000
Interim dividend 20,000 Interest on investment 10,000
Trade Expenses 5,000 Accumulated depreciation 80,000
on machinery

Bank 8,000 Tax deducted at source 5,000

Machinery 1,50,000
Insurance 10,000
Carriage 15,000
Cash in hand 70,000
Furniture 60,000
10% investment 1,00,000
Advertisements 10,000
Land & building 4,00,000
Account reveivable 35,000
Interest on debenture 10,000
Total 14,68,000 Total 14,68,000
Additional information:
1. Closing Stock Rs. 2,00,000
2. Depreciate Machinery 10%
3. Proposed Dividend @ 5%
4. Prepaid Insurance Rs. 2,000
5. Bad debt Rs. 5,000
6. Provision for bad debt @5%
7. Provisions on for tax @ 5% of advertisements
8. Salary due For 4 months
9. Appreciation on furniture @15%
10. Tax deducted at source deposited into bank account of tax of ce Rs. 4,000 ( यो Balance sheet मा मा जा
:- Bank मा (-) र साथै Tax deducted at source मा प (-) । Tax deducted at source :- Balance sheet को
Current liabilities मा जा ।

Required:
1. Trading Account, Pro t and loss Account, Pro t and loss appropriation Account, Balance sheet
2. Multi step income statement and Financial Balance sheet
3. Worksheet with adjustment entries.
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 Q.No. 4
The following Trial Balance of Sunwal Sugar Mill as on 31st December 2025 is given:
Particulars Debit (Rs.) Particulars Credit (Rs.)
Furniture 1,50,000 Share Capital 2,00,000
Equipment 2,00,000 Calls in advance 15,000
Purchased 1,40,000 Creditors 20,000
Opening stock 34,000 Provision for tax 5,000
Unexpired insurance 54,000 General Reserve 11,000
Selling Expenses 52,000 Sales 3,62,000
Custom duty 21,000 Unearned rent 15,000
Office supplies 30,000 Unearned commission 20,000
Salaries 12,000 Accumulate depreciation 30,000
on equipment
Prepaid rent 40,000 Bank overdraft 70,000
Good will 50,000 Salary 40,000
Calls in arrears 8,000 Discount 3,000
Total 7,91,000 Total 7,91,000
Additional information:
1. Appreciate on furniture @10%
2. Depreciation on Equipment @ 20%
3. Unexpired insurance Rs.14,000 was expired .
4. Of ce supplies on hand Rs. 5,000
5. Unearned rent earned Rs. 5,000
6. Unearned commission was earned Rs. 12,000
7. Provision for tax for the year Rs. 8,000
8. Discount still receivable Rs. 25,00
9. Prepaid rent expired Rs. 3,000
10. Salary earned but not received Rs. 500
11. Unsold stock Rs.30,000
12. Transfer to General Reserve Rs. 3,000
13. Goodwill written - off Rs. 20,000
14. Proposed Dividend @ 25% .
Required:
1. Trading Account, Pro t and loss Account, Pro t and loss appropriation Account, Balance sheet
2. Multi step income statement and Vertical Balance sheet
3. Worksheet with adjustment entries.
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 Q.No. 5 The following Trial Balance of Himalayan Company as on 31st December 2024 is given:
Particulars Debit (Rs.) Particulars Credit (Rs.)
Opening Stock 40,000 Share Capital 1,00,000
Bank balance 2,00,000 Sales 3,00,000
Wages 20,000 Retained Earnings 45,000
Advance Salaries 30,000 Creditors 20,000
Prepaid rent 24,000 Accumulate dep. - 10,000
machinery
Miscellaneous expenses 36,000 Commission 5,000
Debtors 36,000 Unearned income 6,000
Machinery 1,00,000
Total 4,86,000 Total 4,86,000
Additional information:
1. Ending inventory Rs. 20,000
2. Unexpired rent Rs. 10,000 was expired.
3. Accrued Commission Rs. 2,000
4. Proposed dividend @ 10%
5. Transfer to reserve fund Rs. 5000
6. Income earned Rs. 3,000
7. Provision for bad debts @ 5%
8. Wages payable for 4 months
9. Depreciation on machinery @5%
10. Provision for tax @25% (Except Worksheet )
11. Provision for tax Rs. 5,000 (For Worksheet)
Required:
1. Trading Account, Pro t and loss Account, Pro t and loss appropriation Account, Balance sheet
Ans: Gross Pro t Rs. 2,50,000 ; Net Pro t Rs. 1,52,400 ; p/l appro. Rs. 1,82,400 ; Balance Sheet Rs. 3,83,200
2. a. Multi step income statement , b. Vertical Balance sheet
Ans : a. Net income after tax Rs. 1,52,400 , b. Balance sheet Rs. 3,83,200
3. Worksheet with Adjustment entries
Ans : Net Pro t c/d Rs. 1,98,200; Reserve c/d Rs. 2,28,200 ; Balance Sheet Rs. 3,98,200

Note :
1. यदी Question मा interest on debenture वा interest on investment Box मा कालेर एको छ भने pro t and loss Account मा जा ।

2. यदी Question मा interest on debenture वा interest on investment Additional information मा कालेर एको छ वा हामीलाई का प को छ भने
pro t and loss Account अ Balance sheet वैमा जा ।

3. यदी Question मा interest on debenture वा interest on investment Box मा कालेर एको छ र Amount ज % भनेको छ त नु नै प यदी कुनै
ख मा त % बराबर Amount न भने हामीलाई amount न लाई कती amount घ को छ त त amount Outstanding interest on debenture वा
Outstanding interest on investment भने र Add ग pro t and loss Account मा जा । र जुन Outstanding add ग का मा Balance Sheet मा
जा । Outstanding interest on debenture - Current Assets त र outstanding interest on investment- current liabilities त ।

4. Advance/ unearned income was earned छ र मा Trial Balance मा Unearned / Advance income छ भने unearned/ Advance income संग (-) ग ।
Advanced Income ज ले प Balance sheet मा जा र Advance income was earned - Pro t and loss account को Credit. Side मा जा ।

5. य Trial Balance मा Commission / Discount वा कुनै प income ह छन् र Additional information मा Advance/ Accrued income छ भने (+) Add
।

6. सबै Expense ह pro t and loss Account को Dr. Side जा तर Preliminary Expenses- Balance Sheet को Miscellaneous Expenses मा जा ।र
Outstanding Expenses ह Balance sheet को Current Liabilities मा जा ।

7. सबै Income ह pro t and loss Account को Cr. Side जा तर Advance Income - Balance Sheet को Current liabilities मा जा । र Outstanding
income ह Balance sheet को Current Assets मा जा ।
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Discussion About Where is Adjustment entries and Trial
balance Information are recorded in nal Account.

Items Trial Balance Additional Information

1. Closing Stock / Stock at
Balance Sheet → Current Assets Trading A/c → Cr. & Balance Sheet → current Assets
End
2. Outstanding /Due/payable /
unpaid/ still to be pay/ Balance Sheet → Current Liabilities Trading or P/L A/c (Add), B/S → Current Liabilities
accrued expenses
3. Prepaid/Paid in Advance/
Balance Sheet → Loan & Advances Trading or P/L A/c (Less), Balance Sheet → Loan & Advance
unexpired
P/L → Dr.
4. Depreciation/Write-Off P/L → Dr. Balance Sheet → Assets (Less)
P/L → Cr.
5. Appreciation P/L → Cr. Balance Sheet → Assets (Add)
P/L → Dr.
6. Bad Debt P/L → Dr. Balance Sheet → Debtors /Receivables → Less)
7. Provision for Bad Debt / P/L → Dr.
P/L → Cr.
Reserve for bad debts Balance Sheet → Debtors /Receivables → Less)
P/L appropriation a/c→ Dr.
8. General Reserve B/S → Liabilities → Reserve & Surplus B/S → Liabilities → Reserve & Surplus
P/L Appropriation a/c→ Dr.(if in debit side or in
Add. Info. ) P/L appropriation a/c→ Dr.
9. Proposed Dividend If in credit side then it is recorded in balance Balance sheet→ Liabilities → Provisions
sheet :- Liabilities —>Provisions
Balance Sheet → Assets —> loan and advance (less with related
10. Prepaid expenses expired P/L → Dr. item )
P/L → Dr.
P/L → Dr. (if in debit side or in Add. Info. )
11.Provision for income tax If in credit side then it is recorded in balance P/L → Dr.
Balance sheet→ Liabilities → Provisions
sheet :- Liabilities —>Provisions
12. Accrued income / income P/L → Cr.
P/L → Cr.
receivable Balance Sheet → Current Assets
Trading or p/L a/c deducted (-)from related expenses
Balance Sheet → Current Assets
13. Advance Expenses Balance Sheet → Current Assets

Trading or p/L a/c deducted (-)from related income

14. Advance income / Balance Sheet → Current liabilities Balance Sheet → Current Liabilities
unearned income
p/L a/c Add from related income
Balance Sheet → Current Assets
15. Outstanding income Balance Sheet → Current Assets

Balance Sheet → Current Assets (Less)

16. Bad debt P/L → Dr. P/L → Dr.
P/L → Dr.
17. Write off from P/L → Dr. Balance Sheet → Assets ( Miscellaneous expenses) deduct (-) from
preliminary expenses preliminary expenses
P/L → Dr.
18. Interest on loan / Interest P/L → Dr. Balance Sheet → Current Liabilities
on debenture
P/L → Cr.
19. Interest on investment P/L → Cr. Balance Sheet → Current Assets

20. Transfer to Reserve and P/L Appropriation → Dr.

P/L Appropriation → Dr.
fund B/S → Liabilities → Reserve & Surplus
P/L Appropriation → Dr.
21. Preference Dividend P/L Appropriation → Dr. Balance sheet→ Liabilities → Provisions
22. Goods lost by Accident/
theft /fire :-
Trading Account —> Cr.
a. No claim condition: P/L → Dr. P/L → Dr.
Trading Account—> Cr.
b. Full claim condition : Balance sheet —> Current Assets Balance sheet —> Current Assets
P/L → Dr. ( unclaimed Amount )
P/L —> Dr. Balance sheet —> Current Assets ( claimed Amount)
c. Partial Claim : Balance sheet —> Current Assets Trading Account—> Cr. (Total Amount )

Note :
Unexpired / prepaid - same - balance sheet :- Loan and advance
Unearned / Advance - same :- current liabilities
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Worksheet Formate :- Worksheet of a ….. Company
As on ……….
Unadj. Trial balance Adjustment Adj.Trial balance Income statement Retained earning Balance sheet
S.N Particulars

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Fill as per question

Additional information:

1 Closing Stock / Ending inventory XXX XXX XXX XXX XXX XXX

2 Proposed Dividend /BOD dividend XXX XXX XXX XXX XXX XXX

3 Transfer to general Reserve /fund XXX XXX XXX XXX XXX XXX

4 Provision for tax /Income tax XXX XXX XXX XXX XXX XXX

5 Outstanding/Due/Payable/Still to XXX XXX XXX

be pay / unpaid expenses / Accrued
expenses

6 Advance income received XXX XXX XXX

7 Interest on loan /debenture due XXX XXX XXX

8 Depreciation XXX XXX XXX

9 Prepaid Expenses Expired XXX XXX XXX

10 Bad Debts XXX XXX XXX

11 Provisions/Reserve for bad debts XXX XXX XXX

12 Assets Written off XXX XXX XXX

13 Appreciation XXX XXX XXX

14 Unearned income is earned XXX XXX XXX

15 Prepaid/Advance/ Unexpired XXX XXX XXX

Expenses

16 Supplies on hand XXX XXX XXX

17 Interest on investment accrued XXX XXX XXX

18 Income earned but not received / XXX XXX XXX

income receivable

19 Accrued income / O/S revenue/ XXX XXX XXX

income receivable

20 Unearned income XXX XXX XXX

Net Profit / Loss Profit Loss Loss Profit

Reserve/ Deficit Reserve Deficit Deficit Reserve

Total XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Issue of share for cash & Forfeiture and Re-issue of shares :-
All important questions: ( Creator Niraj Yadav (Yadav sir)
Q.no.1 . A company issued 80,000 shares of Rs. 100 each at a discount of 10% payable as under
On application…….Rs. 40 per share. On allotment……. Rs. 30 per share
On first call……..Rs. 10 per share On final call ……..Rs. 10 per share
Application were received 12,0000 and allotment were made as under :
40000………40000 shares
60000……….40000 shares
20000 ……… Nil
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 500 shares failed to pay call money .
Required: journal entries for application, allotment , first and final call and Share Forfeiture
Ans : Transfer to allotment 8,00,000 , Bank a/c :- On Allotment :- Rs. 16,00,000 , On First and final call Rs. 7,95,000,
Share forfeiture Rs. 35,000

Q.no.2 . A company issued 90,000 shares of Rs. 100 each at a premium of 10% payable as under
On application…….Rs. 30 per share. On allotment……. Rs. 60 per share
On first and final call ……..Rs. 20 per share
Application were received 160,000 and allotment were made as under :
80000………80000 shares
60000……….10000 shares
20000 ……… Nil
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 500 shares paid full value on allotment money .
Required: journal entries for application, allotment And first and final call .
Ans : Transfer to allotment 15,00,000 , Bank a/c :- On Allotment :- Rs. 48,10,000 , On First and final call Rs. 15,90,000

Q.no.3 . A Ltd. Registered with nominal capital of 25,000 shares of Rs. 100 each . It issued 10,000 such
shares at 10% premium payable as follows:
Rs.30 on application. Rs.50 on allotment (including premium). Rs.30 on first and final call

Application were received 15,000 shares . Allotment was made to all applicants on pro-rata basis and excess
money paid on applications was transferred to allotment. All money due on allotment and call was received
except from Mr. Ram who had allotted 400 shares failed to pay call money .
Required: journal entries for application, allotment And first and final call
Ans : Transferred to allotment Rs.1,50,000, Calls in arrears Rs. 12,000

Q.no.4 . A company issued 8,000 shares of Rs. 100 each payable as under
On application…….Rs. 30 per share. On allotment……. Rs. 40 per share
On first and final call……..Rs. 20 per share
Application were received 12,000 and allotment were made as under :
To the applicants of 2,000 shares ………Nil
To the remaining applicants………….. pro-rata basis
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 500 shares paid full value on call money .

Required: journal entries for application, allotment And first and final call . Share forfeiture,Re-issue and
share transfer .
Ans : Transfer to allotment 60,000, Bank a/c :- On Allotment :- Rs. 2,60,000 , On First and final call Rs. 1,50,000
Q.no.5 . A company issued 8000 shares of Rs. 100 each payable as under
On application…….Rs. 30 per share. On allotment……. Rs. 50 per share
On first and final call……..Rs. 30 per share
Application were received 12000 and allotment were made as under :
4000………4000 shares
2000 ……… Nil
Remaining were pro rata.
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 500 shares paid full value on allotment money.

Required: journal entries for application, allotment And first and final call .
Ans : Transfer to allotment 60,000, Bank a/c :- On Allotment :- Rs.3,55,000 , On First and final call Rs. 2,25,000

Q.no.6. A company issued 10,000 shares of Rs. 100 each payable as under
On application…….Rs. 30 per share. On allotment……. Rs. 20 per share
On first and final call……..Rs. 50 per share
Application were received 22,000 shares , allotment were made as under :
To the applicants of 4,000 shares ………2,000 shares
To the applicants of 2,000 shares ……….2000 shares
To the applicants of 2,000 shares ……… Nil
To the applicants of 14,000 shares……… pro-rata
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 500 shares on pro-rata basis, failed to pay on
allotment and call money.
Required: journal entries for application, allotment And first and final call , Share forfeiture.

Ans : On allotment:- Calls in arrears; Nil , Bank a/c Rs. 40,000 , On First and final call :- Calls in arrears 16,250, Bank Rs. 3,43,750 ,
On share forfeiture:- Calls in arrears 16,250, Share forfeiture 33,750

Q.no.7 . A company issued 10,000 shares of Rs. 50 each at a premium of Rs. 5 payable as under
On application…….Rs. 15 per share. On allotment……. Rs. 25 per share (including premium)
On first and final call……..Rs. 15 per share
Application were received 15,000 and allotment were made as under :
To the applicants of 4000 shares ………4000 shares
To the applicants for 9,000 shares……..6,000 shares
To rest applicants ……… No allotment
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except a shareholder holding 400 shares on pro-rata basis failed to pay
allotment money .
Required: journal entries for application, allotment And first and final call .

Ans : Transfer to allotment 45,000 , On Allotment :- Bank a/c Rs.1,98,000 , calls in arrears 7,000 , On First and final call Bank Rs. 1,44,000 ,
Calls in arrears 6,000
Q.no.8 . A company issued 10,000 shares of Rs. 100 each at a discount of 10% payable as under
On application…….Rs. 35 per share. On allotment……. Rs. 40 per share
On first call and final call ……..Rs. 15 per share
Application were received 15,000 and allotment were made as under :
2,000 applicants………..full
Remaining shares are pro-rata .
It is resolved that the excess amount paid on applications is to be adjusted against amount due on allotment.
All money were duly received except on final call money on 400 .
Required: journal entries for application, allotment And first and final call .
Ans : Bank a/c : Allotment Rs. 2,25,000, Final call Rs. 1,44,000

Q.no.9 .
A company Ltd. invited applications for 5,000 shares of Rs. 100 each at a 10% premium, payable as follows:
• On application: Rs. 40
• On allotment: Rs. 50
• On first and final call: Rs. 20
Applications were received for 10,000 shares, and allotment was made as follows:

• To the applicants for 3,000 shares – Full

• To the applicants for 4,000 shares – 2,000 shares allotted
• To the applicants for 3,000 shares – Nil
The money was duly received except for one shareholder who was allotted 200 shares but failed to pay the
call money.Required:Share application, Share allotment , Share first and final call
Ans : Transfer to allotment 80,000 , On Allotment :- Bank a/c Rs.1,70,000 , , On First and final call : Bank a/c Rs. 96,000, Calls in arrears 4,000

Q.no.10 . A company issued 30,000 shares of Rs. 100 each payable as under
On application…….Rs. 30 per share. On allotment……. Rs. 40per share
On first and final call……..Rs. 40 per share
Application were received 42,000 shares. The board of directors decided to allot. 25,000 applicants in full,
10,000 applicants 50% and 7,000 were rejected . It was decided to utilize excess application money in part
payment of allotment . All money were dully received except a shareholder holding 200 shares on pro-data
basis, failed to pay first and final call money .
Required: journal entries for application , allotment And first and final call .

Ans : On Allotment :- Bank a/c Rs.10,50,000 , On First and final call Bank a/c Rs. 11,92,000 , Calls in arrears Rs. 8,000

Q.No. 11.
A company issued 2,000 shares of Rs.100 each at a discount of 10% payable as follows:
On application………….Rs.30 per share
On allotment (including discount)………….Rs.30 per share
On first and final call ………….Rs.30 per share
Applications were received for 3,000 shares and allotment was made in the following manner :
To applicants for 1,000 shares…………..Full
To applicants for 2,000 shares ………….1,000 shares
Money overpaid on applications were utilized on subsequent calls.All the calls money were received except a holder
holding 100 shares failed to pay on allotment and final calls. His shares were forfeited and re-issued at Rs. 70 per
share .
Required: Share Allotment,Share first and final call. Share forfeiture,Share Re-issued and Share Transfer .
Ans: Transfer to allotment Rs. 30,000 ,On allotment :- Bank a/c Rs.27,000 , calls in arrears: 3,000 ,
On first call and final call :- Bank a/c Rs. 57,000 Calls in arrears Rs. 3,000 , Share Forfeiture: Rs. 3,000 , Calls in arrears Rs. 6,000
Q.No. 12 . A company issued 8,000 shares of Rs. 100 each, amount payable as under
On application……….Rs.25
On allotment……..Rs.45
On first and final call…….Rs. 30
Applications were received for 12,000 shares and allotted to 10,000 applicants on pro-rata basis . Excess
application money were utilized toward sum due to allotment, where remaining applications were rejected.
All the call money were made and duly received.
Required: journal entries for share application, share allotment, share first and final call
Ans : Bank a/c : Allotment Rs. 3,10,000

Q.No.13 Dairy product ltd. Invited applications for 15,000 shares of Rs. 100 each at 20% premium
payable as follows:
Rs.25 on application. Rs. 50 on allotment (including premium)
Rs. 20 on first call. Rs 25 on final call
Applications were received for 25,000 shares. Applications for 5,000 shares were accepted in full, 5,000
shares were refunded and remaining shares were allotted on pro-rata basis . Mr. X who had allotted 500
shares under pro-rata basis failed to pay allotment and call money .
Required: journal entries for application ,allotment , share first call and share final call
Ans : Calls in arrears in allotment 18,750 , 1st call Rs. 10,000. Final call Rs. 12,500

Q.No. 14 Vegetable product ltd. Invited applications for 20,000 shares of Rs. 100 each at 20% premium
payable as follows:
Rs.20 on application. Rs.40 on allotment. Rs. 30 on first call Rs. 30 on final call

Applications were received for 40,000 shares . Applications for 10,000 shares were accepted in full ,
10,000 shares were refunded and remaining shares were allotted on pro-rata basis . Mr. P who had allotted
750 shares under pro-rata basis failed to pay allotment and call money .
Required: journal entries for application ,allotment , share first call and share final call
Ans: Calls in arrears Rs. 15,000 , Rs. 22,500 and Rs. 22,500

Q.No.15 Kumari Bank Ltd. registered with an authorized capital of 1,00,000 shares of Rs.100 each. It
offered 40,000 such shares to public at 10% premium payable as follows :
Rs.40 on application. Rs.20 on allotment(Including premium). Rs. 20 on first call Rs. 30 on final call

Applications were received for 75,000 shares and allotted on the following way :
Groups. Share Applied. Share allotted
A. 10,000. 10,000
B. 50,000. Pro-rata
C. 15,000. Nil

Article of association of the company authorized to transfer excess money on application to allotment and
subsequent calls . Allotment and calls were made and all due money was received. However , Mr. Bashu who
had allotted 300 shares under group B failed to pay calls money .
Required: journal entries for application ,allotment , share first call and share final call
Ans: Calls in arrears on 1st call Rs. 4,000 ; Final Call Rs.9,000
Q.No.16 Lumbini Bank Ltd. registered with an authorized capital of 1,00,000 shares of Rs. 100 each . It
offered 25,000 such shares to public at 10% premium payable as follows:
Rs.20 on application. Rs.40 on allotment(Including premium). Rs. 20 on first call Rs. 30 on final call

Applications were received for 75,000 shares and allotted on the following way :
Groups. Share Applied. Share allotted
A. 10,000 10,000
B. 40,000 10,000
C. 12,000 5,000
D. 13,000 Nil

Article of association of the company authorized to transfer excess money on application to allotment and
subsequent calls . Allotment and calls were made and all due money was received. However , Mr. Josh I who
had allotted 500 shares under group A failed to pay the allotment and calls money .
Required: journal entries for application ,allotment , share first call and share final call

Ans: Calls in arrears on allotment Rs.20,000; 1st call Rs. 10,000 ; Final Call Rs.15,000

Q.No.17 Civil com. Ltd. was registered with 15,000 shares of subscriptions at the premium of Rs. 5 per
share . The money was payable as follows:
On application…….Rs. 30 per share. On allotment……. Rs. 40 per share
On first call……..Rs. 20 per share On final call ……..Rs. ? per share

The application was received for 25,000 shares . No allotment was made to the applicants for 5000 shares .
Rest was allotted on pro-rata basis. All calls were duly made and received except.
i. A shareholder holding 1000 shares paid the full value of the shares on the allotment.
ii. A shareholder who applied for 2000 shares failed to pay allotment and calls money.
Required: journal entries for application ,allotment , share first call and share final call

Ans: Transfer to allotment Rs. 1,50,000; calls in arrears: allotment 45000; first call Rs. 30,000; final call Rs. 22500

Q.No.18 Butwal Hydropower company Ltd. registered with 2,00,000 shares of Rs. 100 each . Company
offered 10,000 shares of Rs. 100 each at par. The money was payable as follows:
On application………….Rs.50 per share
On allotment ………….Rs.30 per share
On first and final call ………….Rs.20 per share
Applications were received for 25,000 shares. Shares were allocated in the following manner.
Groups. Share Applied. Share allotted
A. 5,000 5,000
B. 15,000 5,000
C. 5,000 0

Excess application were utilized towards the money due to allotment and call money. All calls were duly
received except a shareholder Mr. Yadav Sir holding 200 shares from Group A fails to pay first and final call
money on due date.
Required: journal entries for application ,allotment , share first call and final call
Ans: Transfer to allotment Rs. 1,50,000; On application - Bank a/c Rs. 5,00,000 , On allotment- Bank a/c Rs. 15,00,00 ,

On First and final call - Bank a/c Rs. 96,000 , Calls in arrears Rs. 4,000
Q.No.19 Dolma Watch Co. Ltd. issued 8,000 shares of Rs. 100 each payable as under:
• On application ....................................... Rs. 20
• On allotment ....................................... Rs. 30
• On first and final call ........................... Rs. 50
Applications were made by the public for 11,000 shares, and allotments were made on the following
basis:

• To applicants for 6,000 shares .......... Full

• To applicants for 4,000 shares .......... 50%
• To applicants for 1,000 shares .......... Rejected
All excess amount paid on application is to be adjusted against the amount due on allotment and
subsequent calls. The shares were fully called and paid up except one shareholder (from the full
allotment group) to whom 150 shares were allotted, who failed to pay the allotment and call money.

Required: Journal entries for share application, share allotment, and share first and final call.
Ans: Calls in arrears: On allotment = Rs. 4,500; On calls = Rs. 7,500

Q.No.20 A company issued 10,000 shares of Rs. 100 each at a premium of Rs. 10 per share
payable as under:

• On application ....................................... Rs. 40

• On allotment ....................................... Rs. 50 (Including Premium)
• On First and Final call ........................ Rs. 20
Applications were received for 25,000 shares. The allotments were made as follows:

• To the applicants of 5,000 shares .......... 5,000 shares

• To the applicants of 12,000 shares ........ 5,000 shares
• To the applicants of 8,000 shares .......... Nil
It is resolved that the excess amount paid on application is to be adjusted against the amount due on
allotment and call. All the monies were duly received.

Required: journal entries for application ,allotment , share first call and final call
Ans: Amount transferred to allotment Rs. 250,000 and F/F call Rs. 30,000

Q.No.21 . A company issued 16,000 shares of Rs. 10 each payable as under:

• On application ....................................... Rs. 4

• On allotment ....................................... Rs. 3
• On first and final call ........................... Rs. 3
Applications were received for 22,000 shares and allotments were made on the following basis:

• Applicants for 12,000 shares .......... Full

• Applicants for 8,000 shares .......... 4,000 shares
• Applicants for 2,000 shares .......... Nil
All excess amount paid on application is to be adjusted against the amount due on allotment and
subsequent calls. The shares were fully called and paid up except first and final calls from one
shareholder to whom 200 shares were allotted under the pro-rata group.

Required: journal entries for application ,allotment , share first call and final call
Ans: Amount transferred to allotment Rs. 12,000 , Bank a/c on allotment Rs. 36,000 ,
Bank a/c on first and final call Rs. 43,600 , Calls in arrears on first and final call = Rs. 4,00
Q.No.22. A company Ltd. was registered with a capital of Rs. 20,00,000 divided into 20,000 shares
of Rs. 100 each. 10,000 shares were issued at 10% premium payable as under:

• On application ............................. Rs. 30

• On allotment .............................. Rs. 50 (including premium)
• On first and final call ................... Rs. 30
Applications were received for 20,000 shares. No allotments were made for 5,000 shares.
Remaining shares were allotted as under:

Share applied group Shares allotted

5,000 5,000
10,000 5,000

All the calls were made, and the call monies were duly received. However, a shareholder holding
1000 shares from the 5,000 shares applied group, paid the full value of shares on allotment, and
another shareholder holding 1000 shares from the 10,000 shares applied group failed to pay the first
and final call.

Required: Journal entries for

(a) Application
(b) Allotment
(c) First and final call

Ans: Calls in advance on allotment Rs. 30,000; Calls in arrears on first and final call = Rs. 30,000

Q.No.23. A limited company issued 75,000 shares of Rs. 100 each at a 10% discount payable as
follows:

• On application ............................. Rs. 30 per share

• On allotment .............................. Rs. 30 per share
• On first and final call ................... Rs. 30 per share
Applications were received for 90,000 shares.

Allotment was made as under:

• To applicants for 60,000 shares .......... Full

• To applicants for 30,000 shares .......... 50%
The excess money on applications was utilized towards the sum due on allotment. A shareholder to
whom 1,000 shares were allotted on a pro-rata basis failed to pay the first and final call money.

Required: Journal entries for

(a) Allotment
(b) First and final call

Ans: Calls in arrears on first and final call = Rs. 30,000

Q.No.24. Siddhartha Bank Ltd. issued 15,000 shares of Rs. 100 each at a discount of 10% payable
as under:

• On application ............................. Rs. 40

• On allotment .............................. Rs. 20
• On first and final call ................... Rs. 30
Application applied by the public for 24,000 shares. It was allotted on the following basis:

• Group A applied for 9,000 .............. Full

• Group B applied for 12,000 ............ 6,000
• Group C applied for 3,000 .............. Nil
According to the prospectus of the company, excess amount received on application is adjusted
toward allotment and subsequent calls. One shareholder, who was holding 300 shares belonging to
Group B, failed to pay allotment and call money.

Required: Journal entries for: Share application, Share allotment, Share first and final call

Ans: Calls in arrears: On allotment = Nil, On first and final call = Rs. 3,000

Q.No.25 Galaxy Company Ltd. was registered with 15,000 shares of Rs. 10 each. 10,000 shares
were offered to the public for subscription at the premium of Rs. 2 per share. The money was
payable as follows:

• On Application ................. Rs. 3 per share

• On Allotment .................... Rs. 4 per share (including premium)
• On First Call .................... Rs. 2 per share
• On Final Call .................... Rs. 3 per share
Applications were received for 16,000 shares. No allotment was made to the applicants for 4,000
shares. The rest were allotted on a pro-rata basis. All calls were duly made and received except:

1. A shareholder holding 400 shares paid the full value of shares on allotment.
2. A shareholder holding 600 shares failed to pay the first call and final call on due date.
Required: Journal entries for share application, allotment, first call, and final call.
Ans: Calls in arrear: On first call = Rs. 1,200; On final call = Rs. 1,800; Calls in advance: On allotment = Rs. 2,000

Q.No.26 Rastriya Hydro Limited issued 20,000 shares of Rs.100 each to the public for subscription.
The Shares are payable as follows:

Rs.30 on application. Rs. 20 on allotment. Rs. 50 on first&final call

Applications were received for only 15,000 shares . The company decided to allot shares to all
applicants. All other due money is received in due time .

Required: Journal entries for share application, allotment, first call & final call.

Ans : Bank a/c on allotment Rs. 3,00,000

Q.No.27 Rakesh & Ruby Co. Ltd. was registered with a capital of Rs. 2,50,000 divided into equity
shares of Rs. 100 each issued at a premium of Rs. 20 payable as under:
• On application: Rs. 20
• On allotment: Rs. 40 (including premium Rs. 10)
• On first call: Rs. 40(including premium Rs. 10)
• On final call: Rs. 20
Applications were received for 3,000 shares, out of which 300 shares were rejected and Pro-data
allotment was made to the rest of the applicants. All money due was received except for the
following:
i. X, holder of 50 shares, failed to pay allotment and call money.
ii. Y, holder of 40 shares, failed to pay call money.
iii. Z, holder of 30 shares, failed to pay final call.
Required: Journal entries.
Ans: Calls in arrears ; allotment = Rs. 1,920 ; first call = Rs. 3,600; final call = Rs. 2,400

Q.No.28
A Co. invited applications for 5,000 equity shares of Rs. 10 each payable as follows:
• On application: Rs. 3
• On allotment: Rs. 2
• On first and final call: Rs. 5
Applications were received for 11,000 shares. The directors decided the following pattern of allotment:
Application Group Share Applied Share Allotted
A 2,000 1,000
B 1,000 1,000
C 1,000 Nil
D 7,000 Remaining shares
The company can utilize the excess application money in allotment and calls. A holder of 500 shares from
group D failed to pay the first and final call money.
Required: Journal entries to record the above transactions.

Ans: Calls in arrears = Rs. 1,500 (first and final call)

Q.No.29 Dabur Nepal Limited issued 50,000 shares of Rs. 100 each at a premium of 10% to the public for
subscription. The shares are payable as follows:
On application………….Rs.25 per share
On allotment ………….Rs.35 per share
On first call ………….Rs.20 per share
On final call ………….Rs.30 per share

Applications were received for 1,00,000 shares. The company decided to allot all the shares in the following way :
Groups. Share Applied. Share allotted
A. 25,000 Full
B. 50,000 Pro-rata
C. 25,000 Nil

The company made all the calls and due money received from all the applicants in time . However , Mr. Ram who had
allotted 250 shares from group B failed to pay the amount due on allotment and calls whereas Mr. Yadav Sir who had
allotted 400 shares from group A paid all the money at the payment of allotment.
Required: journal entries for application ,allotment , share first call and final call
Ans: Transfer to allotment Rs. 6,25,000, On allotment- Bank a/c Rs. 11,42,500 , Calls in arrears Rs.
2500 , Calls in advance Rs. 20,000 , On First call - Bank a/c Rs. 9,87,000, Calls in arrears Rs. 5,000, Calls in
advance Rs, 8,000 ,On Final call - Bank a/c Rs. 14,80,500, Calls in arrears Rs. 7,500 Calls in advance Rs, 12,000.
Q.No.30
Nepal Investment Bank, Nepal was registered with Rs. 8,00,000 authorized capital divided into shares of Rs.
10 each, issued 50,000 shares to the public at a premium of 20% per share payable as under:
• Rs. 2 per share on application
• Rs. 5 per share including premium on allotment
• Rs. 5 per share on first and final call
Applications were received for 60,000 shares. The company decided to allot the shares on the following
pattern:
Group Applications Allotment
A 20,000 100%
B 10,000 50%
C Remaining Pro-rata
The company may utilize overpaid money towards the allotment and subsequent calls.
Mr. Manoj from category C, to whom 750 shares were allotted, failed to pay allotment and subsequent calls.
Required: Journal entries for:
(a) Share application
(b) Share allotment
(c) Share first and final call
Ans: Calls in arrears:
On allotment = Rs. 3,450
On first and final call = Rs. 3,750

Q.No.31
S. Co. issued 50,000 shares of Rs. 100 each payable as Rs. 30 on application, Rs. 40 on allotment, and
balance on first and final call. Applications were received for 80,000 shares. Board of directors decided to
allot as under:
Share Applied Share Allotted
15,000 Full
5,000 Reject
Remaining On pro-rata basis
Money overpaid on pro-rata allotment was utilized in allotment and other calls.
All money was duly received except Mr. X, who was holding 7,000 shares under pro-rata basis, and Mr. Y,
who was holding 2,000 shares under full allotment, did not pay allotment and call money.
Required: Journal entries.
Ans: Calls in arrears:
On allotment = Rs. 2,10,000
On first and final call = Rs. 2,70,000

Q.No. 32. The company issued 15,000 shares of Rs. 100 each at a premium of 10%, and applications were
received for 30,000shares. These shares were issued payable as under:
• On application – Rs. 30
• On allotment – Rs. 50 (including premium)
• On first and final call – Rs. 30
Allotment details:
• 5,000 applicants – full allotment
• 5,000 applicants – nil allotment
• 20,000 applicants – 10,000 on a pro-rata basis
Excess money on application was utilized towards the allotment. All calls were made and duly received
except a shareholder who was holding 800 shares from pro-rata failed to pay allotment money and call
money.
Required: journal entries for application ,allotment , share first call and final call

Ans: Transfer to allotment Rs. 3,00,000 ,On allotment :- Bank Rs. 4,34,000 ; calls in arrears: allotment 16,000 , On
first call and final call :- Bank Rs. 4,26,000. Calls in arrears Rs. 24,000
Q.No. 33.
A share holder holding 250 shares of Rs. 100 each issued at 5% discount failed to pay final
call money for Rs. 35 . His shares were forfeited. The company reissued those forfeited
shares @ Rs, 110 as fully paid .
Required. Journal entry for
a. Final Call b. Share forfeiture. c.Share Re-issue. d. Transfer
Ans: Share Forfeiture: Calls in arrears Rs. 8,750

Q.No.34. Kantipur Company Limited forfeited 500 shares of Rs. 100 each which Rs.70
were called up. The shareholder failed to pay the first call money of Rs.30 each out of these
400 shares were re-issued at Rs. 50 per share.
Required: Journal entries for forfeiture, Re-issue and transfer .
Ans : Share Forfeiture: Calls in arrears Rs. 15,000

Q.No.35.
A company forfeited 80 shares of Rs. 10 each , issued at discount, for non- payment of final call of Rs. 3 per
share . Out of these shares 60 shares were re-issued at Rs. 8 per share as fully paid .
Required: Journal entries for forfeiture, Re-issue and transfer .
Ans: Share Forfeiture: Calls in arrears Rs. 240

Q.No.36 Pokhara Ltd. registered with an authorized capital of Rs. 1,00,00,000 divided into 1,00,000
shares of Rs. 100 each . Th company issued 75,000 shares at discount of 5% payable as :
Rs. 30 on application. Rs. 20 on allotment
Rs. 20 on first call. Rs. 25 on final call

Application money has been received in all the shares and the amount is alloted . A shareholder holding 500
shares did not pay the calls money . His shares were forfeited and out of this 300 shares were re-issued at Rs.
90 per share as fully paid .
Required : journal entries for :
a. Share application. b . Share allotment. c. Share first call . d. Share final call e. Share forfeiture
e. Re-issue of shares. f. Share Transfer.
Ans : calls in arrear Rs. 10,000 and Rs. 12,500 : Share forfeiture Rs. 25,000 , Re-issued Rs. 27,000 , Capital Reserve Rs. 13,500

Q.No.37. B. Ltd. registered with an authorized capital of 1,00,000 equity shares of Rs. 100 each . It
invited applications for 50,000 equity shares of Rs.100 each payable as under :
On application Rs. 20. On allotment. Rs. 40. On first &final call Rs. 40

Applications were received for 100,000 shares . The allotment was made as follows:
To the applicants of 20,000 shares …….. Nil
To the applicants of 20,000 shares ………Full
To the applicants of remaining shares ……..50%

It was decided to utilize excess money application money in part payment of allotment. All money was duly
received except a holder who applied for 1,000 shares and was given 500 shares failed to pay the allotment
and call money. The Board of Directors decided to forfeit these shares .Later on, forfeitted shares were re-
issued at Rs, 90 as fully paid .
Required : journal entries for :
a. Share application. b . Share allotment. c. Share first call . d. Share final call e. Share forfeiture
e. Re-issue of shares. f. Share Transfer.
Ans: calls in arrears Rs. 10,000 and Rs.20,000 ; Share forfeiture Rs, 20,000 , Re-issue Rs. 45,000 , Capital Reserve Rs. 15,000
Q.No.38 . A company limited issue 25,000 equity shares of Rs. 100 each at premium of 10% payable as
follows:
On application. Rs.25. On allotment Rs, 60 ( including premium). On first &final call Rs. 25

Applications were received for 41,000 shares. These shares were allotted on a pro-rata basis to the
applicants for 30,000 and applications for 11,000 shares were rejected and refunded. Money excess paid
on applications was utilized towards the sum due on allotment. Sujit to whom 100 shares were alloted ,
failed to pay allotment and calls money and his shares were forfeited. Later on, Forfeited shares were re-
issued at Rs.90 per shares as fully paid up.
Required : journal entries for :
a. Share application. b . Share allotment. c. Share first call . d. Share final call e. Share forfeiture
e. Re-issue of shares. f. Share Transfer.

Ans: calls in arrears Rs. 5,500 and Rs.2,500 ; Share forfeiture Rs, 3,000 , Re-issue Rs. 9,000 , Capital Reserve Rs. 2,000

Q.No.39. A company limited issued 10,000 shares of Rs. 100 each payable as under :
On application. Rs. 40. On allotment Rs. 30. On first and final call Rs. 30
Applications were received for 16,000 shares and allotment was made on the following basis :
To applicants for 6,000 shares ……….Full
To applicants for 8,000 shares………..4,000 shares
To applicants for 2,000 shares ……….. Nil

All excess amount paid on the applications is to be adjusted against the amount due on the allotment and
subsequent calls . The shares were fully called and paid -up except one shareholder to whom 200 shares
were allotted failed to pay first and final calls and his shares were forfeited.

Required: journal entries for Allotment, First and final call , Share Forfeiture
Ans: Calls in arrears Rs. 4,000 , Share Forfeiture Rs. 16,000

Q.No. 40 A Company Ltd. Issued 4,000 equity shares of Rs. 100 each at a premium of Rs. 10 per share
payable as follows:
On application. Rs.20. On allotment Rs, 50 ( including premium). On first &final call Rs. 40

Applications were received for 6,000 shares . These shares were alloted on a pro-rata basis to the applicants
of 4,800 shares and applications for 1,200 shares were rejected. Money overpaid on applications was
utilized towards sum due on allotment. Rajesh to whom 200 shares were alloted failed to pay allotment and
first and final call money , Hence his shares were forfeited.

Required: journal entries for Allotment, First and final call , Share Forfeiture
Ans: Calls in arrears Rs. 9,200 and Rs.8,000 , Share Forfeiture Rs. 4,800

Q.No.41. S&K Co. Ltd. has been registered with an authorized capital of Rs. 200,000 divided into 20,000
shares of Rs. 10 each, of which 10,000 shares were offered for public subscription at par. Amount was
payable as Rs. 4 on application, Rs. 3 on allotment, Rs. 2 on first call, and balance on final call.

Applications were received for 15,000 shares. Allotment was made to all of them on a pro-rata basis. The
entire amount was duly received except from Bikash , who holds 100 shares failed to pay allotment and first
call money. Final call was not made by the company.

Required: Journal entries in the books of S&K Co.

Ans: Amount transfer to allotment Rs. 20,000; Calls-in-arrears on allotment Rs. 100; First call Rs. 200
Q.No.42. Kantipur Co. Ltd. issued 30,000 shares of Rs. 10 each at par payable as Rs. 3 on application, Rs.
4 on allotment, Rs. 2 on first call, and Rs.. 1 on final call. Applications were received for 80,000 shares, and
directors decided to make allotment on a pro-rata basis to all applicants.

Required: Journal entries

Q.No.43 P. Co. Ltd. issued 20,000 shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on
allotment, Rs. 2 on first call, and Rs. 3 on final call. Applications were received for 25,000 shares, and
directors decided to make allotment on a pro-rata basis to all applicants. All money was duly received except
a shareholder who was allotted 400 shares failed to pay allotment and calls money.

Give journal entries for the above transactions.

Ans: Bank a/c Rs. 49,000 (Allotment); Bank a/c Rs. 39,200 (First call); Bank a/c Rs. 58,800 (Final call)

Q.No.44 . Lohani Co. Ltd. issued for public subscription 10,000 equity shares of Rs. 10 each at a premium
of Rs. 2 per share, payable as Rs. 3 on application, Rs. 5 on allotment, and Rs. 4 on first and final call.
Applications were received for 20,000 shares. Allotments were made on a pro-rata basis to 15,000 shares.
The remaining applications were rejected. Money overpaid on application was utilized towards the sum due
on allotment.

Required: Journal entries.

Ans: Bank a/c Rs. 35,000 (Allotment)

Q.No.45 Z Ltd. issued 10,000 shares of Rs. 10 each at a premium of Rs. 2, payable as Rs. 3 on application,
Rs. 5 on allotment (including premium), and balance when required. Applications were received for 20,000
shares. The company decided to reject 5,000 shares, and the remaining shares were allotted on a pro-rata
basis. All money was duly received, but Mr. A, who was holding 200 shares, failed to pay the allotment
money.

Required: Journal entries.

Ans: Bank a/c Rs. 34,300 (Allotment)

 Tips for Solving Share Chapter Numerical Problems:-
1. Failed to pay means Calls in Arrears.
2. Fully paid/ pay full value / pay entire value means Calls in Advance.
3. Share Premium and Share Discount are always applied on allotment money.
4. Share Premium and Share Discount are recorded during the due entry.
5. Share Premium is recorded on the credit (Cr.) side, while Share Discount is recorded on the debit (Dr.) side
6. During entries on allotment (in receive entry):
◦ Calls in Advance is recorded on the Cr. side.
◦ Calls in Arrears is recorded on the Dr. side.
7. During entries on the first call (in receive entry):
◦ Calls in Advance is recorded on the Cr. side.
◦ Calls in Arrears is recorded on the Dr. side.
8. During entries on the final call:( in receive entry )
◦ Both Calls in Advance and Calls in Arrears are recorded on the Dr. side.
9. During entries on both first and final calls: ( In receive entry )
◦ Both Calls in Advance and Calls in Arrears are recorded on the Dr. side.
10. If allotment money is lower than application money, a working note must be prepared.
11. If a failed to pay allotment money is given, a working note is also necessary.
12. If Calls in Advance is given in allotment money:
◦ Calls in Advance is also included in share first and final call money.
◦ When recording Calls in Advance in the receive entry of Share Allotment Account, we must
calculate it from share first and final call money.
Example:
Suppose the following information is provided:
Application: Rs. 20
Allotment: Rs. 30
Share First & Final Call: Rs. 50
200 shares fully paid on allotment money
Then the journal entries would be:
On Allotment :
Bank A/c Dr.
To Share Allotment A/c
To Calls in Advance A/c (200 * 50)

On First and Final Call:

Bank A/c Dr.
Calls in Advance A/c Dr. (200 * 50)
To Share First and Final Call A/c

13. If Calls in Arrears is given in allotment money:

◦ Calls in Arrears is also included in share first and final call money.
14.Nil, Rejected, and Not Allotted—all mean the same.
15. यदी failed to pay on pro-rata basis money छ वा Applications ह मा pro- rata भ कतै छ भने Ratio का प ।
16. यदी failed to pay on money मा छ भने Ratio का प न।
17. य failed to pay on money मा छ र ज failed to pay छ सको Rate य Application को। Rate भ कम् छ भने तब
प Ratio का प ।
18. Formula to find out Ratio : Transfer Amount
No. of share allotted
19. Ratio को काम Calls in arrears मा (-) ने मा हो र यदी Calls in advance छ भने Ratio का प न न भने समा Ratio को
कुनै काम न।
नि
दि
हु
दै
नि
ल्नु
र्छ
त्र
त्र
हु
स्मा
त्र
नि
ल्नु
र्दै
त्य
रू
दि
न्ने
नि
ल्नु
र्दै
कि
नि
न्दा
त्य
ल्नु
र्छ
Format :-
Journal entries for share application, Share allotment and share first and final call
Date Particulars L.F. Debit (Rs.) Credit ( Rs.)

A. Share Application:

Bank a/c Dr. XXX

To share application a/c XXX

(Being share application money

received)

Share application a/c Dr. XXX

To share capital a/c XXX

To share allotment a/c * XXX

To share First &Final call a/c * XXX

To Bank a/c * XXX

( Being share application money

transfer to share capital , share
allotment,share call money and
rejected money refunded )

B. Share Allotment:

Share allotment a/c Dr. XXX

Discount on share a/c Dr. * XXX

To share capital a/c XXX

To share premium a/c * XXX

( Being Share application money

due with discount/ Premium)

Bank a/c Dr. XXX

Calls in arrears a/c Dr. * XXX

To share allotment a/c XXX

To calls in advance a/c * XXX

( Being share allotment money

received after adjusting calls in
arrears / Calls in advance )

C. Share First Call : *

Share First Call a/c Dr.

To share capital a/c

(Being share rst call money Due )

Bank a/c Dr. XXX

Calls in arrears a/c Dr. * XXX

To share First Call a/c XXX

To calls in advance a/c * XXX

👇 (Next) 👇
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 Date Particulars L.F. Debit (Rs.) Credit ( Rs.)

(Being share rst call money

received after adjusting calls in
arrears/ Calls in advance)

D. Share Final Call : *

Share Final Call a/c Dr. XXX

To share capital a/c XXX

(Being share nal call money Due)

Bank a/c Dr. XXX

Calls in arrears a/c Dr. * XXX

Calls in advance a/c Dr. * XXX

To share nal call a/c XXX

(Being share nal call money

received after adjusting calls in
arrears/ Calls in advance)

E. Share First and nal Call : *

Share First and Final Call a/c Dr. XXX

To share capital a/c XXX

(Being share First and nal call

money Due)

Bank a/c Dr. XXX

Calls in arrears a/c Dr. * XXX

Calls in advance a/c Dr. * XXX

To share First and XXX

Final call a/c

(Being share First & nal call

money received after adjusting
calls in arrears/ Calls in advance)

Note : 👆 👆 👆 👆
In these entries, we see the star (*), which means it depends on the question. If the question
demands such entries, then record them; if not, recording them is not necessary. (यी ह मा,
हामी तारा (*) , जसको अ यो मा र ग छ। य ले ह को माग ग छ भने,
नीह लाई क ग होस्; य होइन भने, नीह लाई क ग आव क न।)
Working Note : ( Formate)
Group App. No. of Money Excess Transfer . Refund
Money share use in Money
Received alloted app. Allotment First& nal Call
ति
रू
रे
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दे
ख्छौं
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दि
र्थ
प्र
श्न
ति
नि
र्भ
रू
र्द
रे
र्ड
दि
प्र
र्न
श्न
श्य
त्य
स्ता
छै
प्र
वि
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रू
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Forfeiture and Re-Issue of shares
Format :
Date Particulars L.F. Debit (Rs.) Credit ( Rs.)

1.( a) Forfeiture of shares issued at

par

Share Capital a/c Dr. XXX

To share Forfeiture a/c XXX

To calls in arrears a/c XXX

( Being Forfeiture of …. Shares of

Rs. for non-payment of … )

(b) Forfeiture of shares issued at

discount

Share capital a/c Dr. XXX

To share forfeiture a/c XXX

To discount on share a/c XXX

To calls in arrears a/c XXX

( Being Forfeiture of …. Shares of

Rs. for non-payment of … )

(c) Forfeiture of shares issued at

Premium

i. When company receive

premium ( non-payment of Call
money )

Share Capital a/c Dr. XXX

To share forfeiture a/c XXX

To calls in arrears a/c XXX

( Being Forfeiture of …. Shares of

Rs. for non-payment of … )

ii. When company doesn’t receive

premium ( non-payment of
allotment money )

Share Capital a/c Dr. XXX

Share premium a/c Dr. XXX

To share Forfeiture a/c XXX

To calls in arrears a/c XXX

( Being Forfeiture of …. Shares of

Rs. for non-payment of … )
Date Particulars L.F. Debit (Rs.) Credit ( Rs.)

2 Re-issue of shares :

a) At Par

Bank a/c Dr. XXX

To share capital a/c XXX

(Being…..share re-issued at par )

b) At Discount

Bank a/c Dr. XXX

Share forfeiture a/c Dr. (Re-issue XXX

discount )

Discount on share a/c Dr. (Issue XXX

discount )

To share capital a/c XXX

(Being….. share re-issued at

discount)

c) At Premium

Bank a/c Dr.

To share capital a/c

To share premium a/c

( Being….. share re-issued at

premium)

3 Share Transfer to capital

Reserve

Share Forfeiture a/c Dr. XXX

To capital reserve a/c XXX

( Being surplus amount transfer to

capital reserve)