OVERSUBSCRIPTION OF SHARES.ACCOUNTING FOR SHARE CAPITAL.CLASS 12 TH ACCOUNTANCY.
OVERSUBSCRIPTION OF SHARES.ACCOUNTING FOR SHARE CAPITAL.CLASS 12TH ACCOUNTANCY.
IN THIS VIDEO YOU WILL LEARN TO DO THE TREATMENT OF OVERSUBSCRIPTION OF SHARES OF "ACCOUNTING FOR SHARE CAPITAL". KINDLY WATCH ALL THE VIDEOS IN A PROPER ORDER TO GET BETTER CLARITY. KINDLY SHARE THE VIDEO WITH YOUR FRIENDS ALSO. THANKS REGARDS.
IN THIS VIDEO YOU WILL LEARN TO DO THE TREATMENT OF OVERSUBSCRIPTION OF SHARES OF "ACCOUNTING FOR SHARE CAPITAL". KINDLY WATCH ALL THE VIDEOS IN A PROPER ORDER TO GET BETTER CLARITY. KINDLY SHARE THE VIDEO WITH YOUR FRIENDS ALSO. THANKS REGARDS.
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LearningTranscript
00:00So today's topic is oversubscription of shares.
00:05The issue of shares is said to be oversubscribed when the number of shares applied are more
00:11than the number of shares issued for subscription.
00:14Suppose a company is issuing 50,000 shares or applications, they get 70,000.
00:21So this situation is known as the oversubscription of shares.
00:25In this case, a company has three alternatives in front of it.
00:29Number one, they can reject the access applications and refund their money.
00:35And number two, they can do the partial or proportionate allotment known as the pro-rata
00:40allotment.
00:41They can allot the shares proportionately.
00:44Suppose you are giving 5 shares to the person who applied for 7 shares.
00:48That is, in the ratio of 7 is to 5, you are issuing the shares.
00:54And number three, combination of both 1 and 2 alternatives.