Question 5 Chapter 8 of Class 12 Part – 2 - 2024

Question 5 Chapter 8 of Class 12 Part – 2 - 2024

5. (Issue of Pref. Shares) EX company invited applications for 4,000 10% preference shares of Rs. 10 each. It demanded 20% of face value on application and 50% of balance on allotment and the remaining on final call. Applications were received for equal number of shares. Pass journal entries.

The solution of Question 5 Chapter 8 of Class 12 Part – 2 - 2024: -

We are providing a solution of Question 5 Chapter 8 of Class 12 Part – 2 - 2024 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 4 to 6 Chapter no. 8 class 12 of Usha publication. To check the direct solution of question no. 5 from the flowing video by using time stamps of the video.

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2. Check out the Solution of Question 5 Chapter 8 of Class 12 Part – 2 - 2024 in Article Format:-

Face value of share = 10
Application Money = 20 % of Rs. 10 = Rs. 2
Allotment Money = 50 % of Rs. 8 = Rs. 4
Balance of 40% = Rs. 4

Journal

Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		8,000
	To Share Application A/c				8,000
	(Being application money received on 4000shares @ 2 each )
b)	10% Pref. Share Application A/c	Dr.		8,000
	To Pref. Share capital A/c				8,000
	(Being application money transferred to Share cap. A/c)
c)	10 % Pref. Share Allotment A/c	Dr.		16,000
	To Pref. Share capital A/c				16,000
	(Being allotment money due on 4,000 shares @ 4 as per share )
d)	Bank A/c	Dr.		16,000
	To 10 % Pref. Share cap. A/c				16,000
	(Being allotment money received )
e)	10 % Pref. Share final Call A/c	Dr.		16,000
	To Pref. Share capital A/c				16,000
	(Being call money on 4,000 shares @ 4 as per share )
f)	Bank A/c	Dr.		16,000
	To 10 % Pref. Share final Call A/c				16,000
	(Being final call received )