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

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 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 sharesPreference Shares
On ApplicationRs.3 per ShareRS.3 per Share
On AllotementRs.5 per Share
(including premium)		Rs.4 per Share
On First CallRs.4 per ShareRs.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

DateParticularsL.F.
Amount
(Dr.)
Amount
(Cr.)
Bank A/c6,00,000
   To Equity share Application A/c3,00,000
  To Preference share Application A/c3,00,000
( Money received for Equity share
Application and Equity share Application )
Equity share Application A/c3,00,000
Equity share Application A/c3,00,000
   To Equity share Capital A/c3,00,000
   To Preference share Capital A/c3,00,000
( 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/c5,00,000
10% Preference Share Allotment A/c8,00,000
   To Equity Share Capital A/c3,00,000
   To Securities Premium A/c2,00,000
   To 10% Preference Share Allotment A/c8,00,000
(Amount due on allotment)
Bank A/c13,00,000
   To Equity Share Allotment A/c5,00,000
   To 10% Preference Share Allotment A/c8,00,000
( All money received )
Equity Share First and Final Call A/c4,00,000
10% Preference Share First and Final Call A/c6,00,000
   To Equity Share Capital A/c4,00,000
   To 10% Preference Share Capital A/c6,00,000
(Amount on first and final call due)
Bank A/c10,00,000
   To Equity Share First and Final Call A/c4,00,000
   To 10% Preference Share First and Final Call A/c6,00,000
( All money duly Received )

Cash Book

DateParticulars J.F.AmountDateParticulars J.F.Amount
 Equity Share Application3,00,000balance b/d3,00,000
10% Preference Share Application6,00,000
Equity Share Allotment5,00,000
10% Preference Share Allotment8,00,000
Equity Share First and Final Call4,00,000
10% Preference Share First & Final Call6,00,000
  32,00,000 32,00,000

Chapter-1 Accounting for Share Capital-II



Location: India

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