Anand Company Limited issued 1,00,000 Preference share of 10 each payable as On. On Application 4 On Allotment 3 On First Call 2 On Second & Final Call 1 Company received application for all these shares and received all money. Pass Journal Entries in the books of Anand Company Ltd


 


Anand Company Limited issued 1,00,000 Preference share of 10 each payable as On  

On Application 4 


On Allotment 3 


On First Call 2 


On Second & Final Call 1 


Company received application for all these shares and received all money. 
 
Pass Journal Entries in the books of Anand Company Ltd. 
 

Solution: 

Journal Entry  
In the Books of Anand Co. Ltd. 

Date 

Particulars 

J.F 

Debit  

Credit 

1. 

Bank A/c Dr. 

  To Preference Share Application A/c 

[Being received application money @ ₹4 share] 

 

4,00,000 

 

4,00,000 

2. 

Preference Share Application A/C Dr. 

To Preference Share Capital A/c 

[Being application money transferred to share capital account] 

 

4,00,000 

 

4,00,000 

3. 

Preference Share Allotment A/c Dr. 

To Preference Share Capital A/c 

[Being allotment money due] 

 

3,00,000 

 

3,00,000 

4. 

Bank A/c Dr. 

To Preference Share Allotment A/c 

[Being allotment money received] 

 

3,00,000 

 

3,00,000 




5. 

Preference Share First Call A/c Dr. 

To Preference Share Capital A/c 

[Being First call money due] 

 

2,00,000 

 

2,00,000 

6. 

Bank A/c Dr. 

To Preference Share Capital A/c 

[Being First call money received] 

 

2,00,000 

 

2,00,000 

7. 

Preference Share Second & Final Call A/c Dr. 

To Preference Share Capital A/c 

[Being Second & Final Call money due] 

 

1,00,000 

 

1,00,000 

8. 

Bank A/c Dr. 

To Preference Share Second & Final Call A/c 

[Being Second & Final Call money received]  

 

1,00,000 

 

1,00,000 




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