Home Products Ltd. is registered with authorised capital of ₹ 10,00,000 divided into 1,00,000 Equity Shares of ₹ 10 each
Home Products Ltd. is registered with authorised capital of ₹ 10,00,000 divided into 1,00,000 Equity Shares of ₹ 10 each. it issued 70,000 Equity Shares for subscription at premium of ₹ 2 per share, payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. It received subscription for 62,500 shares.
You are required to pass the necessary Journal entries.
[Hint: Minimum subscription is not received.]
Anurag Pathak Changed status to publish September 1, 2023
Solution:-
Note: As the minimum subscription of 70000 × 90% = 63,000 shares is not received. Thus, all application money is to be returned to the subscribers.
Anurag Pathak Changed status to publish September 1, 2023
