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