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

Question 13 Chapter 8 of +2- Part

Question 13 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 13 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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