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

Question 05 Chapter 8 of +2-Part-1

Table of Contents

The solution of Question 05 Chapter 8 of +2 Part-1: –

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

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

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.	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 40,000 share @ 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 40,000 share @ 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 )