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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Premio Ltd. issued 50,000 Equity Shares of ₹100 each at a premium of ₹50 per share, payable ₹100 per share on application and the balance on allotment. The issue was subscribed, and shares were issued to the applicants. Pass the necessary Journal entries.
JOURNAL (Books of Premio Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 50,00,000 | |||
| To Share Application A/c | 50,00,000 | |||
| (Application money received on 50,000 shares @ ₹100 per share) | ||||
| Share Application A/c Dr. | 50,00,000 | |||
| To Share Capital A/c | 50,00,000 | |||
| (Application money on 50,000 shares transferred to Share Capital at ₹100 per share) | ||||
| Share Allotment A/c Dr. | 25,00,000 | |||
| To Securities Premium A/c | 25,00,000 | |||
| (Allotment due on 50,000 shares, entirely ₹50 securities premium, the face value having been fully collected on application) | ||||
| Bank A/c Dr. | 25,00,000 | |||
| To Share Allotment A/c | 25,00,000 | |||
| (Allotment money received) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.16 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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