Question 9 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 9 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 9 Min Read December 20, 2020

Question No.9 - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 9 Chapter 8 of +2-A

Table of Contents

The solution of Question 9 Chapter 8 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

9. Modern marbles ltd. was registered with an authorized capital of Rs 10,00,000 divided into 7500 equity shares of Rs 100 each 2500 preference shares of 10 each .1000 equity shares and 500; 9% preference shares were offered to the public on the following terms-equity shares payable Rs 10 on the application, Rs 40 on the allotment and the balance in two calls of Rs 25 each. Preference shares are payables Rs 25 on the application, Rs 25 on the allotment and Rs 50 on first and final call. All the shares were applied for and allotted amount due to was duly received.
Prepare cash book and pass necessary journal entries to record the above issue of shares and show how the share capital will appear in the balance sheet.

The solution of Question 9 Chapter 8 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		75,000
	To equity share application A/c				75,000
	(Being the application money received )
	Equity Share application A/c	Dr		75,000
	To Equity share capital A/c				75,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		3,00,000
	To Share capital A/c				3,00,000
	(Being the allotment money due )
	Bank A/c			3,00,000
	To Share allotment A/c				3,00,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr		1,87,500
	To Share capital A/c				1,87,500
	(Being the first call money due )
	Bank A/c	Dr		1,87,500
	To Share first call A/c				1,87,500
	(Being first call money received )
	Share second and final call A/c	Dr		1,87,500
	To Share capital A/c				1,87,500
	(Being the second and final call money due )
	Bank A/c	Dr		1,87,500
	To Share second and final A/c				1,87,500
	(Being second and final money received )
	Cash A/c	Dr		62,500
	To 9%preference share application A/c				62,500
	(Being the application money received )
	9%preference Share application A/c			62,500
	To 9%preference Share capital A/c				62,500
	(Being application money transferred to 9%preference share capital )
	9%preference Share allotment A/c	Dr		62,500
	To 9%preferenceShare capital A/c				62,500
	(Being the allotment money due )
	Cash A/c	Dr		62,500
	To 9%preference Share allotment A/c				62,500
	(Being application money transferred to equity share capital )
	9%prefrence Share first and final call A/c	Dr		1,25,000
	To 9%preferenceShare capital A/c				1,25,000
	(Being the first and final call money due )
	Cash A/c	Dr		1,25,000
	To Share first and final call A/c				1,25,000
	(Being first and final call money received )

Dr.	Cash Book						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
	To equity share application a/c		75,000
	To equity share allotment a/c		3,00,000
	To equity share first and final call a/c		1,87,500
	To equity share second and final call a/c		1,87,500
	To preference share application a/c		62,500
	To preferences allotment a/c		62,500
	To preference share first and final call a/c		1,25,000
					By Balance C/d		10,00,000
			10,00,000				10,00,000