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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Citizen Watches Ltd. invited applications for 50,000 shares of ₹10 each, payable ₹3 on application, ₹4 on allotment, and the balance on first and final call. Applications were received for 60,000 shares; applications for 50,000 shares were accepted and the remainder rejected. All calls were made and received except the first and final call on 500 shares. Pass the Journal entries.
JOURNAL (Books of Citizen Watches Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (60,000 × ₹3) Dr. | 1,80,000 | |||
| To Share Application A/c | 1,80,000 | |||
| (Application money received on 60,000 shares) | ||||
| Share Application A/c Dr. | 1,80,000 | |||
| To Share Capital A/c (50,000 × ₹3) | 1,50,000 | |||
| To Bank A/c (10,000 × ₹3) | 30,000 | |||
| (Application money for accepted shares transferred to Share Capital; rejected applications refunded) | ||||
| Share Allotment A/c (50,000 × ₹4) Dr. | 2,00,000 | |||
| To Share Capital A/c | 2,00,000 | |||
| Bank A/c Dr. | 2,00,000 | |||
| To Share Allotment A/c | 2,00,000 | |||
| Share First and Final Call A/c (50,000 × ₹3) Dr. | 1,50,000 | |||
| To Share Capital A/c | 1,50,000 | |||
| Bank A/c (49,500 × ₹3) Dr. | 1,48,500 | |||
| To Share First and Final Call A/c | 1,48,500 | |||
| (Call money received on 49,500 shares; 500 shares in arrears) |
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.22 - 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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