Question

A limited company offered for subscription of 1,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share. 2,00,000. 10% Preference shares of Rs 10 each at par.

The amount on share was payable as under :

	Equity Shares	Preference Shares
On Application	Rs 3 per share	Rs 3 per share
On Allotment	Rs 5 per share	Rs 4 per share
	(including a premium)
On First Call	Rs 4 per share	Rs 3 per share

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

Record these transactions in the journal and cash book of the company:

Answer 1

Books of A Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Application A/c		Dr.		3,00,000
	10% Preference Share Application A/c		Dr.		6,00,000
		To Equity Share Capital A/c				3,00,000
		To 10% Preference Share Capital A/c				6,00,000
	(Application money transferred to Equity Share Capital )
	Equity Share Allotment A/c		Dr.		5,00,000
	10% Preference Share Allotment A/c		Dr.		8,00,000
		To Equity Share Capital A/c				3,00,000
		To Securities Premium A/c				2,00,000
		To 10% Preference Share Allotment A/c				8,00,000
	(Amount due on allotment)
	Equity Share First and Final Call A/c		Dr.		4,00,000
	10% Preference Share First and Final Call A/c		Dr.		6,00,000
		To Equity Share Capital A/c				4,00,000
		To 10% Preference Share Capital A/c				6,00,000
	(Amount on First and Final call due)

Cash Book( Bank Column)
Dr.					Cr.
Date	Particulars		J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
	Equity Share Application			3,00,000
	10% Preference Share Application			6,00,000
	Equity Share Allotment			5,00,000
	10% Preference Share Allotment			8,00,000
	Equity Share First and Final Call			4,00,000		Balance c/d		32,00,000
	10% Preference Share First & Final Call			6,00,000
				32,00,000				32,00,000