Question

9. Modern Marbles Ltd. was registered with an authorised capital of 10,00,000 divided into 7,500 Equity
Shares of 100 each and 2,500 Preference Shares of 100 each. 1,000 Equity Shares and 500;9% Preference
Shares were offered to public on the following terms-Equity Shares payable 10 on application, 40 on
allotment and the balance in two calls of 25 each. Preference Shares are payable25 on application, 25
on allotment and 50 on first and final call. All the shares were applied for and allotted. Amount due was
duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares
and show how the Share Capital will appear in the Balance Sheet.​

Answer 1

Answer:

Explanation:

                             Journal Entries                                                                  

                                                                                                                                   

   Particulars                                   Amount           Amount                                                                                                                              

Equity share application      10000

    To Equity share capital A/c                 10000

Preference  share application    12500

    To 9 `%` share capital A/c                         12500

Equity share allotment  A/c         40000

   To Equity share capital A/c                       40000

Preference share  Allotment       12500

    To 9% preference share capital                      12500

Equity share capital                           25000

    To equity share capital                                           25000

Preference share capital first & final    25000

    To 9 % preference share capital                                   25000

Equity share capital                               25000

   To   Equity share capital                                             25000