Question

SDA Ltd. invited application for 4,000 equity shares of 10 each at a premium of 2 payable with application. The entire amount is payable along with application. The issue was oversubscribed by 1,000 shares. What will be the amount credited to equity share capital and securities premium reserve account respectively? (a) 40.000; 8,000 (b) 50.000; * 10,000 (c) 40,000: 10.000 (d) 50.000; 8,000​

Answer 1

Answer:

Equity Share capital A/C = ₹40,000

Securities Premium Reserve A/C = ₹8,000

Explanation:

Sr.No PARTICULARS DEBIT CREDIT

1 Bank A/c Dr. 60,000

To share application A/c 60,000

(5000 × 12)

2 Share Application A/C Dr. 60,000

To Share capital A/C 40,000

To Secu. Prem. Res. A/C 8,000

To Bank A/C 12,000

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W.N.

Equity Share capital A/C = 4000 × 10 = 40,000

Security Premium Reserve A/C = 4000 × 2 = 8,000

refunded Amount (BANK) = 1000 × 12 = 12,000

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