Question 13 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 13 Chapter 8 of +2-Part-1

13. (Issue Share at Par/Premium) X Y Z Co. Ltd. issued 1,00,000 equity shares of 10 at a premium of 2 per share and 10,000 10 % preference shares of 100 each payable as follows :

	Equity shares	Preference share
On application	2	20
On allotment	5(including premium )	30
On first call	3	30
On second  call	2	20

All the shares offered were subscribed for by the public and cash duly received.
Pass necessary journal entries to record the above issue of shares.

The solution of Question 13 Chapter 8 of +2 Part-1: -

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Journal

Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		4,00,000
	To Equity Share Application A/c				2,00,000
	To 10% Preference Share Application A/c				2,00,000
	(Being receipt of application money of 1,00,000 shares @ 2 per share & 10,000 preference shares @ 20 per share )
b)	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share capital A/c				2,00,000
	(Being transfer of application money to equity share Capital A/c)
c)	10% Preference Share Application A/c	Dr.		2,00,000
	To 10% Preference Share capital A/c				2,00,000
	(Being transfer of application money to Preference share Capital A/c)
d)	Equity Share Allotment A/c	Dr.		5,00,000
	To Equity Share capital A/c				3,00,000
	To Securities Premium A/c				2,00,000
	(Being allotment money due on 1,00,000 equity share @ Rs. 5 per share including Rs. 2 per share premium )
e)	10% Preference Share Allotment A/c	Dr.		3,00,000
	To 10% Preference Share Capital A/c				3,00,000
	(Being allotment money due on 10,000 preference share @ ₹ 30 as per share)
f)	Bank A/c	Dr.		8,00,000
	To Equity Share Allotment A/c				5,00,000
	To Preference Share Allotment A/c				3,00,000
	(Being allotment money received )
g)	Equity share first Call A/c	Dr.		3,00,000
	To Equity Share capital A/c				3,00,000
	(Being first call money due on 1,00,000 share @ Rs. 3 per share )
h)	Preference share first Call A/c	Dr.		3,00,000
	To 10% Preference Share capital A/c				3,00,000
	(Being first call money due on 1,00,000 shares @ Rs. 25 per share )
i)	Bank A/c	Dr.		6,00,000
	To Equity Share First Call A/c				3,00,000
	To Preference Share First Call A/c				3,00,000
	(Being the receipt of first call Amount )
j)	Equity share final Call A/c	Dr.		2,00,000
	To Equity Share capital A/c				2,00,000
	(Being final call money due on 1,00,000 share @ Rs. 3 per share )
k)	10% Preference Share Final Call A/c	Dr.		2,00,000
	To 10% Preference Share Capital A/c				2,00,000
	(Being Final call money made on 10,000 Preference share @ Rs. 20 per share)
l)	Bank A/c	Dr.		4,00,000
	To Equity Share First Call A/c				2,00,000
	To Preference Share First Call A/c				2,00,000
	(Being the receipt of Final call Amount on Equity Share & 10% Preference Share)