Question

Over-subscription of Shares
15. CMC Ltd. invited application for issuing 1,00,000 equity shares of 10 each at a premium
of 3 per share. The whole amount was payable on application. The issue was over-sth
scribed by 30,000 shares and allotment was made on pro-rata basis. Pass Journal entries​

Answer 1

Answer:

1)Bank dr. 1690000

To equity share application. 1690000

2)Equity share application. Dr. 1690000

To equity share capital. 1000000

To securities premium. 300000

To bank. 390000

Answer 2

Explanation:

Bank a/c (130000×13) dr

To Equity share application a/c

Equity share application a/c (100000×13)

To Equity share capital a/c (100000×10)

To Securities Premium a/c (100000×3)

Equity share application a/c (30000×13)

To Bank a/c