Page 325 - VIRANSH COACHING CLASSES

5. Equity Share First Call A/c .................................Dr. 1,80,000
To Equity share capital A/c 1,80,000
(Being Equity share first call money on 60000 shares
@ ` 3 due)
6. Bank A/c .............................................................Dr. 1,80,000
To Equity Share First call A/c 1,80,000
(Being Equity share first call money on 60,000 equity
shares @ ` 3 received)
7. Equity share Second & Final call A/c ................Dr. 1,20,000
To Equity Share Capital A/c 1,20,000
(Being final call money on 60,000 equity shares @ `
2 per share due
8. Bank A/c .............................................................Dr. 1,20,000
To Equity share Second & Final call A/c 1,20,000
(Being Final Call money on 60,000 equity shares @ `
2 per share received)

2. Honesty Ltd, Issued 20000 Preference shares of ` 10 each payable
` 4 on Application
` 2 on Allotment
` 4 on 1st and Final call.
Shares were fully subscribed and all amount were received.
Pass necessary Journal Entries in the Books of Honesty Ltd.
Solution :
Journal Entries in the Books of Honesty Ltd.
Date Particulars L.F. Debit ` Credit `

1. Bank A/c .............................................................Dr. 80,000
To Preference Share Application A/c 80,000
(Being application money on 20,000 Preference shares
@ ` 4 per share received)
2. Preference Share Application A/c .......................Dr. 80,000
To Preference Share Capital A/c 80,000
(Being application money on 20,000 Preference shares
@ ` 4 per share transferred to preference share capital
account)
3. Preference Share Allotment A/c ..........................Dr. 40,000
To Preference Share Capital A/c 40,000
(Being allotment money on 20,000 Preference shares
@ ` 2 per share due)
4. Bank A/c .............................................................Dr. 40,000
To Preference Share Allotment A/c 40,000
(Being Allotment money on 20,000 Preference shares
@ ` 2 per share received)

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