Question

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 and Final call ₹ 1

Company received application for all these share and received all money.

Pass Journal Entries in the books of Anand Company Ltd.

Answer 1

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)
			20,00,000	20,00,000