Question 07 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 07 Chapter 8 of +2-Part-1

7. (Both Classes of Shares/Cash Book) Y Ltd. was formed with an authorised capital of Rs. 40,00,000 divided into 3,00,000 equity shares of Rs. 10 each and 10,000 Preference shares of Rs. 100 each. Both classes of shares were issued to the public in full and they are to be paid as follows:

	Equity shares	Preference shares
Application	20 percent	25 percent
Allotment	30 percent	25 percent
First call	50 precent	25 percent
Second call		25 percent

All the calls were made and in due course the money were received in full. Give the necessary journal entries and prepare Cash Book.

The solution of Question 07 Chapter 8 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		6,00,000
	To Equity Share Application A/c				6,00,000
	(Being application money of 3,00,000 equity share transferred to Share cap. A/c)
b)	Preference Share Application A/c	Dr.		2,50,000
	To Preference Share capital A/c				2,50,000
	(Being application money 10,000 preference share transferred to Share cap. A/c)
c)	Equity Share Allotment A/c	Dr.		9,00,000
	To Equity Share capital A/c				9,00,000
	(Being allotment money due on 3,00,000 share @ Rs. 3 purchase)
d)	Preference Share allotment A/c	Dr.		2,50,000
	To Preference Share capital A/c				2,50,000
	(Being allotment money due on 10,000 preference share @ 25 as per shares )
e)	Equity share first & final Call A/c	Dr.		15,00,000
	To Equity Share capital A/c				15,00,000
	(Being call money due on 3,00,000 equity share @ 5 each )
f)	Preference Share first call A/c	Dr.		2,50,000
	To Preference Share capital A/c				2,50,000
	(Being first call money received on 10,000 share @ 4 as per shares )
g)	Preference Share second & final Call A/c	Dr.		2,50,000
	To Preference Share capital A/c				2,50,000
	(Being final call money due on 10,000 preference share @ 25 as per shares )

Cash Book (Bank Cloumn only)
Particulars	Amount	Particulars	Amount
To Equity Share Application A/c	6,00,000	By Balance c/d	40,00,000
To Preference Share capital A/c	2,50,000
To Equity Share Allotment A/c	9,00,000
To Preference Share allotment A/c	2,50,000
To Equity share first & final Call A/c	15,00,000
To Preference Share first call A/c	2,50,000
To Preference Share second & final Call A/c	2,50,000
	40,00,000		40,00,000

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

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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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