Question

‘Parimal Company Ltd.’ issued 1,00,000 preference shares of ₹ 20 each payable as ...

On application	₹ 8
On allotment	₹ 6
On first call	₹ 4
On final call	₹ 2

Company received application for all these shares and received all the money.

Pass journal entries in the books of Parimal Company Ltd.

Answer 1

Journal Entries in the books of Parimal Company Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c ...Dr.		8,00,000	-
	To Preference Share Application A/c		-	8,00,000
	(Being application money on 1,00,000 preference shares @ ₹ 8 per share received)
2.	Preference Share Application A/c ...Dr.		8,00,000	-
	To Preference Share Capital A/c		-	8,00,000
	(Being application money received on 1,00,000 preference share @ ₹ 8 per share transferred to Preference Share Capital Account)
3.	Preference Share Allotment A/c ...Dr.		6,00,000	-
	To Preference Share Capital A/c		-	6,00,000
	(Being allotment money on 1,00,000 preference shares @ ₹ 6 per share due)
4.	Bank A/c ...Dr.		6,00,000	-
	To Preference Share Allotment A/c		-	6,00,000
	(Being allotment money on 1,00,000 preference share @ ₹ 6 per share received)
5.	Preference Share First Call A/c ...Dr.		4,00,000	-
	To Preference Share Capital A/c		-	4,00,000
	(Being first call money on 1,00,000 preference shares @ ₹ 4 per share due)
6.	Bank A/c ...Dr.		4,00,000	-
	To Preference Share First Call A/c		-	4,00,000
	(Being first call money on 1,00,000 preference share @ ₹ 4 per share received)
7.	Preference Share Final Call A/c ...Dr.		2,00,000	-
	To Preference Share Capital A/c		-	2,00,000
	(Being final call money on 1,00,000 Preference Shares @ ₹ 2 per share due)
8.	Bank A/c ...Dr.		2,00,000	-
	To Preference Share Final Call A/c		-	2,00,000
	(Being final call money on 1,00,000 Preference Shares @ ₹ 2 per share received)
			40,00,000	40,00,000