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Question
Anand Company Limited issued 1,00,000 Preference shares of ? 10 each payable as - On
On Application ₹ 4
On Allotment ₹ 3
On First call ₹ 2
On Second and Final call ₹ 1
Company received application for all these share and received all money.
Pass Journal Entries in the books of Anand Company Ltd.
Solution
| Journal Entries in the books of Anand Company Limited | ||||
| Date | Particulars | L.F | Debit Amount (₹) | Credit Amount (₹) |
| 1 | Bank A/c ...Dr. | 4,00,000 | ||
| To Preference Share Application A/c | 4,00,000 | |||
| (Being application money on 1,00,000 preference shares @ ₹ 4 per share received) | ||||
| 2 | Preference Share Application A/c ...Dr. | 4,00,000 | ||
| To Preference Share Capital A/c | 4,00,000 | |||
| (Being application money received on 1,00,000 preference share @ ₹ 4 per share transferred to Preference Share Capital Account) | ||||
| 3 | Preference Share Allotment A/c ...Dr. | 3,00,000 | ||
| To Preference Share Capital A/c | 3,00,000 | |||
| (Being allotment money on 1,00,000 preference shares @ ₹ 3 per share due) | ||||
| 4 | Bank A/c ...Dr. | 3,00,000 | ||
| To Preference Share Allotment A/c | 3,00,000 | |||
| (Being allotment money on 1,00,000 preference share @ ₹ 3 per share received) | ||||
| 5 | Preference Share First Call A/c ...Dr. | 2,00,000 | ||
| To Preference Share Capital A/c | 2,00,000 | |||
| (Being first call money on 1,00,000 preference shares @ ₹ 2 per share due) | ||||
| 6 | Bank A/c ...Dr. | 2,00,000 | ||
| To Preference Share First Call A/c | 2,00,000 | |||
| (Being first call money on 1,00,000 preference share @ ₹ 2 per share received) | ||||
| 7 | Preference Share Second & Final Call A/c ...Dr. | 1,00,000 | ||
| To Preference Share Capital A/c | 1,00,000 | |||
| (Being second & final call money on 1,00,000 Preference Shares @ ₹ 1 per share due) | ||||
| 8 | Bank A/c ...Dr. | 1,00,000 | ||
| To Preference Share Second & Final Call A/c | 1,00,000 | |||
| (Being Second and final call money on 1,00,000 Preference Shares @ ₹ 1 per share received) | ||||
| 20,00,000 | 20,00,000 | |||
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