Practical Problem 02
Practical problem | Q 2 | Page 341
Anand Company Limited issued 1,00,000 Preference shares of ? 10 each payable as –
On On Application ₹ 4
On Allotment ₹ 3
On First call ₹ 2
On Second & Final call ₹1
Company received application for all these share and received all money.
Pass Journal Entries in the books of Anand Company Ltd.
SOLUTION:
Journal Entries in the books of Anand Company Limited | ||||
Date | Particulars | L.F | Debit Amount (₹) | Credit Amount (₹) |
1 | Bank A/c…………………………………………………………………….. Dr. | 4,00,000 | ||
To Preference Share Application A/c | 4,00,000 | |||
( Being application money on 1,00,000 preference shares @ ₹ 4 per share received) | ||||
2 | Preference Share Application A/c………………………………. Dr. | 4,00,000 | ||
To Preference Share Capital A/c | 4,00,000 | |||
( Being application money received on 1,00,000 preference share @ ₹ 4 per share transferred to Preference Share Capital Account) | ||||
3 | Preference Share Allotment A/c ………………………………….Dr | 3,00,000 | ||
To Preference Share Capital A/c | 3,00,000 | |||
( Being allotment money on 1,00,000 preference shares @ ₹ 3 per share due) | ||||
4 | Bank A/c…………………………………………………………………….. Dr. | 3,00,000 | ||
To Preference Share Allotment A/c | 3,00,000 | |||
( Being allotment money on 1,00,000 preference share @ ₹ 3 per share received) | ||||
5 | Preference Share First Call A/c ……………………………………Dr. | 2,00,000 | ||
To Preference Share Capital A/c | 2,00,000 | |||
( Being first call money on 1,00,000 preference shares @ ₹ 2 per share due) | ||||
6 | Bank A/c ……………………………………………………………………..Dr | 2,00,000 | ||
To Preference Share First Call A/c | 2,00,000 | |||
( Being first call money on 1,00,000 preference share @ ₹ 2 per share received) | ||||
7 | Preference Share Second & Final Call A/c……………………. Dr | 1,00,000 | ||
To Preference Share Capital A/c | 1,00,000 | |||
( Being second & final call money on 1,00,000 Preference Shares @ ₹ 1 per share due) | ||||
8 | Bank A/c ……………………………………………………………………Dr. | 1,00,000 | ||
To Preference Share Second & Final Call A/c | 1,00,000 | |||
( Being Second and final call money on 1,00,000 Preference Shares @ ₹ 1 per share received) | ||||
2000000 | 2000000 | |||