Question 8 Chapter 8 of Class 12 Part – 2 – 2024
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 8 Chapter 8 of Class 12 Part – 2 – 2024: –
Day 169 Solution of Questions 7 and 8 Share Capital Chapter 8 Accounts class 12
| Journal |
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| 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 may on 70,000 12%Pref. Share due) | |||||
| c) | 12% Pref. Share Final Call 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) |
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| 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 | ||