What Accounting Entries are passed in case of Oversubscription - Accountancy - Accounting for Share Capital

Question

What Accounting Entries are passed in case of Oversubscription????

Neha Chopra · Accepted Answer

Dear Student,

Following Journal entries are passed in case of over
subscription;

Date
Particulars
LF
Amount (in
Rs)
Amount (in
Rs)

(1)
Bank
A/c
Dr

To Share Application
A/c

(Share Application money
received)

(2)
Share Application
A/c
Dr

To Share Capital
A/c

To Bank A/c
(refunded amount)

To Share Allotment
A/c

To Share First/Final Call
A/c

(Share Application money
transferred to Share Capital A/c on alloted shares & for excess
amount received due to over-subscription either refunded back or
due to pro-rata allotment adjusted on Share allotment & Call
money)

Regards,

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
(1)	Bank A/c	Dr
	To Share Application A/c
	(Share Application money received)

(2)	Share Application A/c	Dr
	To Share Capital A/c
	To Bank A/c (refunded amount)
	To Share Allotment A/c
	To Share First/Final Call A/c
	(Share Application money transferred to Share Capital A/c on alloted shares & for excess amount received due to over-subscription either refunded back or due to pro-rata allotment adjusted on Share allotment & Call money)