Question

A limited company offered for subscription 10,000 Equity Shares of Rs 10 each at a premium of Rs 2 per share and 5,000, 10% Preference Shares of Rs 10 each at par.

The amount on equity shares was payable as thus:

On Application Rs 3 per share

On Allotment Rs 5 per share (including a premium)

On First Call Rs 4 per share

The amount of preference shares was payable as follows:

On Application Rs 3 per share

On Allotment Rs 4 per share

On First Call Rs 3 per share

All the shares were fully subscribed, called-up and paid.

Record these transactions in the cash book of the company.

Answer 1

$\text{Dr.}\text{CASH BOOK (Bank Column)}\text{Cr.}$

$\begin{array}{cccc}\text{Particulars}& \text{Rs.}& \text{Particulars}& \text{Rs.}\\ \text{Equity Share Application A/c}& 30,000& \text{Balance c/d}& 1,70,000\\ \text{10 \% Preference Share Application A/c}& 15,000& & \\ \text{Equity Share Allotment A/c}& 50,000& & \\ \text{10 \% Preference Share Allotment A/c}& 20,000& & \\ \text{Equity Share First and Final Call A/c}& 40,000& & \\ \text{10 \% Preference Share First and Final CallA/c}& 15,000& & \\ & \overline{\underset{–}{\underset{–}{1,70,000}}}& & \overline{\underset{–}{\underset{–}{1,70,000}}}\end{array}$