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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A-One Product Ltd. is registered with an authorised capital of ₹10,00,000 divided into 50,000 Equity Shares of ₹20 each. It issued 25,000 Equity Shares for subscription at a premium of ₹2 per share, the issue price being payable along with application. It received ₹5,17,000 towards application money. Prepare the Balance Sheet showing Share Capital.
Issue price = ₹20 + ₹2 = ₹22. Number of shares subscribed = 5,17,000 ÷ 22 = 23,500 shares (an undersubscription against the 25,000 offered).
BALANCE SHEET OF A-ONE PRODUCT LTD. (Extract)
| Particulars | Note No. | ₹ |
|---|---|---|
| Shareholders’ Funds: Share Capital | 1 | 4,70,000 |
| Reserves and Surplus | 2 | 47,000 |
| Total | 5,17,000 |
NOTES TO ACCOUNTS
| Particulars | ₹ |
|---|---|
| 1. Share Capital | |
| Authorised Share Capital: 50,000 Equity Shares of ₹20 each | 10,00,000 |
| Issued Share Capital: 25,000 Equity Shares of ₹20 each | 5,00,000 |
| Subscribed and Fully Paid-up: 23,500 Equity Shares of ₹20 each | 4,70,000 |
| 2. Reserves and Surplus | |
| Securities Premium Reserve (23,500 × ₹2) | 47,000 |
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.28 - 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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