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

Question 07 Chapter 8 of +2- Part

Question 07 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 - Question 07 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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