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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Bright Ltd. issued 80,000 Equity Shares of ₹10 each, against which it received applications for 1,20,000 shares. Application money was ₹4; Allotment money and First and Final Call were ₹3 each. Pass the Journal entry for allotment of shares in each of the following cases: Case 1: Excess applications were rejected. Case 2: Pro-rata allotment is made. Case 3: Applications for 20,000 shares were refused allotment, and pro-rata allotment was made to the remaining. Case 4: Applications for 10,000 shares were refused allotment, applications for 10,000 shares were allotted the shares applied for, and pro-rata allotment was made to the remaining.
JOURNAL (Books of Bright Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Case 1: Excess applications rejected | ||||
| Share Application A/c (1,20,000 × ₹4) Dr. | 4,80,000 | |||
| To Share Capital A/c (80,000 × ₹4) | 3,20,000 | |||
| To Bank A/c (40,000 × ₹4) | 1,60,000 | |||
| (Application money transferred to Share Capital; excess refunded) | ||||
| Case 2: Pro-rata allotment to all applicants | ||||
| Share Application A/c (1,20,000 × ₹4) Dr. | 4,80,000 | |||
| To Share Capital A/c (80,000 × ₹4) | 3,20,000 | |||
| To Share Allotment A/c (40,000 × ₹4) | 1,60,000 | |||
| (Application money transferred to Share Capital; excess adjusted against Allotment) | ||||
| Case 3: 20,000 shares’ applications refused; pro-rata to the rest | ||||
| Share Application A/c (1,20,000 × ₹4) Dr. | 4,80,000 | |||
| To Share Capital A/c (80,000 × ₹4) | 3,20,000 | |||
| To Share Allotment A/c | 80,000 | |||
| To Bank A/c (20,000 × ₹4) | 80,000 | |||
| (Application money transferred to Share Capital; excess adjusted against Allotment, and refused applicants’ money refunded) | ||||
| Case 4: 10,000 shares’ applications refused, 10,000 shares allotted in full, pro-rata to the rest | ||||
| Share Application A/c (1,20,000 × ₹4) Dr. | 4,80,000 | |||
| To Share Capital A/c (80,000 × ₹4) | 3,20,000 | |||
| To Share Allotment A/c | 1,20,000 | |||
| To Bank A/c (10,000 × ₹4) | 40,000 | |||
| (Application money transferred to Share Capital; excess adjusted against Allotment, and refused applicants’ money refunded) | ||||
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.19 - 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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