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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Home Products Ltd. is registered with an authorised capital of ₹10,00,000 divided into 1,00,000 equity shares of ₹10 each. It issued 70,000 Equity Shares for subscription at a premium of ₹2 per share, payable ₹3 on application, ₹5 on allotment, and the balance on first and final call. It received subscriptions for 62,500 shares. Pass the necessary Journal entries.
Minimum subscription (90% of 70,000 shares issued) = 63,000 shares. Since only 62,500 shares were subscribed, the minimum subscription requirement was not met, and the application money must be refunded in full.
JOURNAL (Books of Home Products Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (62,500 × ₹3) Dr. | 1,87,500 | |||
| To Share Application A/c | 1,87,500 | |||
| (Application money received) | ||||
| Share Application A/c Dr. | 1,87,500 | |||
| To Bank A/c | 1,87,500 | |||
| (Application money refunded, as the subscription of 62,500 shares fell short of the 63,000-share minimum subscription requirement) |
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.29 - 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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