Class XII Boards🔥Q1 & Q2 Issue of Shares | Instalments | Oversubscription | Rejection vs Pro Rata

In this video, we tackle Question 1 & Question 2 from our series on Issue of Share Capital, focusing on the critical concept of Oversubscription. This is a fundamental topic for Class 12 Accountancy Board Exams and serves as the building block for larger 8-mark problems.
We break down the two primary ways companies handle excess applications:
1. Question 1: Rejection of Excess Applications – Learning how to refund application money to unsuccessful applicants and pass the corresponding bank entries.
2. Question 2: Pro-Rata Allotment – Understanding how to adjust excess application money towards allotment and calculating the proportionate allotment for each applicant.
Key Learning Objectives:
• Understanding the concept of Oversubscription.
• The difference between Full Allotment, Rejection, and Pro-Rata.
• How to prepare the Table showing Adjustment of Excess Application Money.
• Drafting Journal Entries for both scenarios (Refund vs. Adjustment).
Whether you are preparing for CBSE, ISC, or State Boards, this step-by-step guide will clarify your doubts about handling excess shares!
Time Stamps
0:00 - Introduction to Oversubscription
1:10 - Q1: Analysis of Rejection & Refund Method
3:45 - Journal Entries for Rejection (Q1)
5:30 - Q2: Understanding Pro-Rata Allotment Logic
8:15 - Preparing the Adjustment Table for Pro-Rata
11:00 - Journal Entries for Pro-Rata Allotment (Q2)
13:30 - Summary & Key Exam Tips

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