Question 13 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 13 Chapter 8 of +2-Part-1

13. (Issue Share at Par/Premium) X Y Z Co. Ltd. issued 1,00,000 equity shares of 10 at a premium of 2 per share and 10,000 10 % preference shares of 100 each payable as follows :

	Equity shares	Preference share
On application	2	20
On allotment	5(including premium )	30
On first call	3	30
On second  call	2	20

All the shares offered were subscribed for by the public and cash duly received.
Pass necessary journal entries to record the above issue of shares.

The solution of Question 13 Chapter 8 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		4,00,000
	To Equity Share Application A/c				2,00,000
	To Preference Share Application A/c				2,00,000
	(Being receipt of application money of 1,00,000 shares @ 2 per share & 10,00 preference shares @ 20 )
b)	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share capital A/c				2,00,000
	(Being the transfer of app. Amount to Share cap. A/c)
c)	Preference Share Application A/c	Dr.		2,00,000
	To 10%Preference Share capital A/c				2,00,000
	(Being the transfer of app. Amount to Share cap. A/c )
d)	Equity Share Allotment A/c	Dr.		5,00,000
	To Equity Share capital A/c				3,00,000
	To Securities Premium A/c				2,00,000
	(Being allotment money due on 1,00,000 equity share @ Rs. 5 including Rs. 2 per share premium )
e)	Preference Share allotment A/c	Dr.		3,00,000
	Discount on issue of preference shares	Dr.		50,000
	To 10 % Preference Share capital A/c				3,50,000
	(Being allotment money due on 10,000 preference share @ 25 as per shares )
f)	Bank A/c	Dr.		8,00,000
	To Equity Share Allotment A/c				5,00,000
	To Preference Share Allotment A/c				3,00,000
	(Being allotment money received )
g)	Equity share first Call A/c	Dr.		3,00,000
	To Equity Share capital A/c				3,00,000
	(Being first call money due on 1,00,000 share @ Rs. 3 per share )
h)	Preference share first Call A/c	Dr.		2,50,000
	To 10% Preference Share capital A/c				2,50,000
	(Being first call money due on 1,00,000 share @ Rs. 25 per share )
i)	Bank A/c	Dr.		5,50,000
	To Equity Share First Call A/c				3,00,000
	To Preference Share First Call A/c				2,50,000
	(Being the receipt of first call Amount )
j)	Equity share final Call A/c	Dr.		2,00,000
	To Equity Share capital A/c				2,00,000
	(Being final call money due on 1,00,000 share @ Rs. 3 per share )

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

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