Question

Bata company issued 40,000 12% preference shares of rs.100 each at par,payable rs.40 on application, rs.50 on allotment and balance on final call.
Applications for 40,000 shares were received.
Required:Journal entries and Balance sheet.​

Answer 1

Answer:

1. Bank A/c Dr. To Share Application A/c. 16,00,000

2. Share Application A/c. Dr. To Share Capital Ac

16,00,000

3. Share Allotment A/c. Dr. To Share Cap A/c.

20,00,000

4.Bank To Share allotment 20,00,000

5. Share Call To Share Capital 4,00,000

6. Bank to Share Call 4,00,000