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Question 05 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 05 Chapter 8 of +2- Part
Q-5 - CH-8 - Usha +2 Book 2018 - Solution

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Question 05 Chapter 8 of +2-Part-1

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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 05 Chapter 8 of +2 Part-1: –

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.DebitCredit
a)Bank A/cDr. 8,000 
 To Share Application A/c   8,000
 (Being application money received on 4000shares @ 2 each )    
      
b)10% Pref. Share Application A/cDr. 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/cDr. 16,000 
 To Pref. Share capital A/c   16,000
 (Being allotment money due on 40,000 share @ 4 as per share )    
      
d)Bank A/cDr. 16,000 
 To 10 % Pref. Share cap. A/c   16,000
 (Being allotment money received )    
      
e)10 % Pref. Share final Call A/cDr. 16,000 
 To Pref. Share capital A/c   16,000
 (Being call money on 40,000 share @ 4 as per share )    
      
f)Bank A/cDr. 16,000 
 To 10 % Pref. Share final Call A/c   16,000
 (Being final call received )    
     

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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