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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Light Lamps Ltd. issued 50,000 shares of ₹10 each as fully paid-up to the promoters for their services in setting up the company. It also issued 2,000 shares of ₹10 each, credited as fully paid-up, to the underwriters of shares for their services. Journalise these transactions.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Incorporation Expenses A/c Dr. | 5,00,000 | |||
| To Share Capital A/c (50,000 × ₹10) | 5,00,000 | |||
| (Shares issued to promoters for their services) | ||||
| Underwriting Commission A/c Dr. | 20,000 | |||
| To Underwriters’ A/c | 20,000 | |||
| (Underwriting commission due) | ||||
| Underwriters’ A/c Dr. | 20,000 | |||
| To Share Capital A/c (2,000 × ₹10) | 20,000 | |||
| (Shares issued to underwriters in settlement of their commission) |
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.49 - 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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