Question

Kiran Textiles Ltd. issued 50,000 Equity Shares of 10 each at a premium
of 34 per share and 2,000, 6% Preference Shares of 100 each at par payable as
follows:
Equity Shares
Pref. Shares
₹
₹
On Application
3.50
30
On Allotment
6.50 (including premium) 20
On First Call
2
25
On Final Call
2
25
All these shares were fully subscribed, called-up and paid. Record these
transactions in journal and cash book.​

Answer 1

Explanation:

equity share application a/c dr 175000

6% p shares application a/c dr dr 60000

to e share capital a/c 175000

to 6%ps application a/c 60000

es alootment a/c dr 325000

ps allot dr 40000

to eshare capital 125000

to spr 200000

to 6% ps capital 40000

eq share 1 st call a/c dr 100000

6% ps 1st call a/c dr 50000

to share capital 100000

to6% pref.share capital 50000

eq share final call a/c dr 100000

6% pref. share final call a/c dr 50000

to share capital 100000

to pref. share capital 50000

cash book(bank coloumn)

to equity share appplication 175000 by bal c/d 900000

to 6% pref. share appli. 60000

to es allot 325000

to 6% ps allot 40000

ti es 1st call 100000

to 6% ps 1st call 50000

to es final call 100000

to 6% ps final calll 50000

total 900000 900000