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प्रश्न
Quality Stationers Ltd. registered with 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, issue price being payable along with application. It received application money of ₹ 4,40,000.
You are required to pass the necessary Journal entries and show share capital in the Balance Sheet of the company.
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उत्तर
| Journal Entries in the Books of Quality Stationers Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Bank A/c Dr. | 4,40,000 | ||
| To Shares Application A/c | 4,40,000 | |||
| (Application money received) | ||||
| 2. | Shares Application A/c Dr. | 4,40,000 | ||
| To Bank A/c | 4,40,000 | |||
| (Application money refunded due to non-receipt of minimum subscription) | ||||
| Balance Sheet | ||
|---|---|---|
| Particulars | Note No. | ₹ |
| EQUITY AND LIABILITIES | ||
| Shareholders' Funds | ||
| Share Capital | 1 | Nil |
| Notes to Accounts | |
|---|---|
| Particulars | ₹ |
| Note 1: Share Capital | |
| Authorised Capital: | |
| 1,00,000 Equity Shares of ₹ 20 each | 20,00,000 |
| Issued Capital: | |
| 50,000 Equity Shares of ₹ 20 each | 10,00,000 |
| Subscribed Capital: | Nil |
Working note:
Shares issued: 50,000 shares
Issue price: ₹ 20 per share, payable fully on application
Application money received:
₹ 4,40,000
Number of shares applied for:
`(4,40,000)/20 = 22,000` shares
Minimum subscription required:
50,000 × 90% = 45,000 shares
Since:
22,000 < 45,000
the company has not received the minimum subscription. Therefore, the entire application money is refunded.
