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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Quality Stationers Ltd. is registered with an authorised capital of ₹20,00,000 divided into 1,00,000 equity shares of ₹20 each. 50,000 Equity Shares were issued for subscription at par, the issue price being payable along with application. It received application money of ₹4,40,000. Pass the necessary Journal entries and show Share Capital in the Balance Sheet.
Shares subscribed = 4,40,000 ÷ 20 = 22,000 shares.
JOURNAL (Books of Quality Stationers Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 4,40,000 | |||
| To Share Application A/c | 4,40,000 | |||
| (Application money received for 22,000 shares @ ₹20 per share) | ||||
| Share Application A/c Dr. | 4,40,000 | |||
| To Share Capital A/c | 4,40,000 | |||
| (Application money transferred to Share Capital) |
BALANCE SHEET OF QUALITY STATIONERS LTD. (Extract)
| Particulars | Note No. | ₹ |
|---|---|---|
| Shareholders’ Funds: Share Capital | 1 | 4,40,000 |
NOTES TO ACCOUNTS
| Particulars | ₹ |
|---|---|
| 1. Share Capital | |
| Authorised Share Capital: 1,00,000 Equity Shares of ₹20 each | 20,00,000 |
| Issued Share Capital: 50,000 Equity Shares of ₹20 each | 10,00,000 |
| Subscribed and Fully Paid-up: 22,000 Equity Shares of ₹20 each | 4,40,000 |
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.30 - 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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