Question 08 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 08 Chapter 8 of +2- Part

Question 08 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

8. (Journal Entries/Cash Book) Star Company issued 80,000 12% preference shares of Rs. 100 each payable Rs. 40 on application; Rs. 20 on allotment and Rs. 40 on final call.
Applications were received for 70,000 shares. The amount was duly received. Prepare journal and cash Book.

The solution of Question 08 Chapter 8 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
a) 12% Pref. Share Application A/c Dr.   28,00,000  
  To 12% Pref. Share capital A/c       28,00,000
  (Being 70,000 shares allotted )        
           
b) 12 % Pref. Share Allotment A/c Dr.   14,00,000  
  To 12 % Pref. Share capital A/c       14,00,000
  (Being allotment due )        
           
c) 12% Pref. Share Application A/c Dr.   28,00,000  
  To 12% Pref. Share capital A/c       28,00,000
  (Being final call due )        
         

Cash Book (Bank Cloumn only)
Particulars
Amount Particulars Amount
To 12 % Preference Share capital A/c 28,00,000 By Balance c/d 70,00,000
To Preference Share allotment A/c 14,00,000    
To Preference Share final call A/c 28,00,000    
  70,00,000   70,00,000

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 08 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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