A Limited Company Offered For Subscription Of 1,00,000 Equity Shares Of Rs 10 Each At A Premium Of Rs 2 Per Share. 2,00,000, 10% Preference Shares Of Rs 10 Each At Par

 Q.6. A limited company offered for subscription of 1,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share. 2,00,000, 10% Preference shares of Rs 10 each at par.

The amount on share was payable as under :

	Equity shares	Preference Shares
On Application	Rs.3 per Share	RS.3 per Share
On Allotement	Rs.5 per Share (including premium)	Rs.4 per Share
On First Call	Rs.4 per Share	Rs.3 per Share

All the shares were fully subscribed, called-up and paid.

Record these transactions in the journal and cash book of the company:

Books of A limited company

Journal

Date	Particulars		L.F.	Amount (Dr.)	Amount (Cr.)
	Bank A/c			6,00,000
	To Equity share Application A/c				3,00,000
	To Preference share Application A/c				3,00,000
	( Money received for Equity share Application and Equity share Application )
	Equity share Application A/c			3,00,000
	Equity share Application A/c			3,00,000
	To Equity share Capital A/c				3,00,000
	To Preference share Capital A/c				3,00,000
	( Equity share Application money transferred to equity share capital A/c and Preference share Application money transferred to Preference share Capital A/c )
	Equity Share Allotment A/c			5,00,000
	10% Preference Share Allotment A/c			8,00,000
	To Equity Share Capital A/c				3,00,000
	To Securities Premium A/c				2,00,000
	To 10% Preference Share Allotment A/c				8,00,000
	(Amount due on allotment)
	Bank A/c			13,00,000
	To Equity Share Allotment A/c				5,00,000
	To 10% Preference Share Allotment A/c				8,00,000
	( All money received )
	Equity Share First and Final Call A/c			4,00,000
	10% Preference Share First and Final Call A/c			6,00,000
	To Equity Share Capital A/c				4,00,000
	To 10% Preference Share Capital A/c				6,00,000
	(Amount on first and final call due)
	Bank A/c			10,00,000
	To Equity Share First and Final Call A/c				4,00,000
	To 10% Preference Share First and Final Call A/c				6,00,000
	( All money duly Received )

Cash Book

Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	Equity Share Application		3,00,000		balance b/d		3,00,000
	10% Preference Share Application		6,00,000
	Equity Share Allotment		5,00,000
	10% Preference Share Allotment		8,00,000
	Equity Share First and Final Call		4,00,000
	10% Preference Share First & Final Call		6,00,000
			32,00,000				32,00,000

Chapter-1 Accounting for Share Capital-II

4 5 6 7 8