# Practical Problem 02

#### 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