Question

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 Allotment	Rs 5 per share	Rs 4 per share
	(including a premium)
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:

 

Answer 1

Books of A Ltd.

Journal

Date	Particulars	L.F	Debirt Amount Rs	Credit Amount Rs
	Dr Equity Share Application A/c 10% Preference Share Application A/c To Equity Share Capital A/c To 10% Preference Share Capital A/c (Application money transferred to Equity Share Capital )		3,00,000   6,00,000	3,00,000   6,00,000
	Equity Share Allotment A/c 10% Preference Share Allotment A/c To Equity Share Capital A/c To Securities Premium A/c To 10% Preference Share Allotment A/c (Amount due on allotment)		5,00,000     8,00,000	3,00,000   2,00,000 8,00,000
	Equity Share First and Final Call A/c 10% Preference Share First and Final Call A/c To Equity Share Capital A/c To 10% Preference Share Capital A/c (Amount on first and final call due)		4,00,000 6,00,000	4,00,000   6,00,000

Cash Book( Bank Column)

 

Date	Particulars	J.F	Amount Rs	Date	Particulars	J.F	Amount Rs
	Equity Share Application		3,00,000		Balance c/d		32,00,000
	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