Page 225 - MA-12

9.14 Double Entry Book Keeping (Section A)—ISC XII

Solution: Ell Kay Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Machinery A/c ...Dr. 11,50,000
To Excel Ltd. 11,50,000
(Being the machinery purchased from Excel Ltd.)
Excel Ltd. ...Dr. 11,50,000
To 15% Preference Share Capital A/c 10,00,000
To Securities Premium Reserve A/c 1,00,000
To Bank A/c 50,000
(Being the amount due to Excel Ltd. settled)
Bank A/c ...Dr. 45,00,000
To Equity Shares Application A/c 25,00,000
To Preference Shares Application A/c 20,00,000
(Being the application money received for 5,00,000 Equity Shares @ ` 5
per Equity Share and 40,000, 10% Preference Shares @ ` 50 per
Preference Share)
Equity Shares Application A/c ...Dr. 25,00,000
To Equity Share Capital A/c 10,00,000
To Equity Shares Allotment A/c 15,00,000
(Being the Equity Shares allotted on pro rata to all applicants and
excess amount transferred to Equity Shares Allotment A/c)
Preference Shares Application A/c ...Dr. 20,00,000
To 10% Preference Share Capital A/c 12,50,000
To Bank A/c 7,50,000
(Being 25,000, 10% Preference Shares allotted to applicants of 25,000
Preference Shares and balance refunded)
Equity Shares Allotment A/c ...Dr. 16,00,000
To Equity Share Capital A/c 6,00,000
To Securities Premium Reserve A/c 10,00,000
(Being the allotment money due on 2,00,000 Equity Shares)
Preference Shares Allotment A/c ...Dr. 7,50,000
To 10% Preference Share Capital A/c 7,50,000
(Being the allotment money due on 25,000, 10% Preference Shares)
Bank A/c (WN 1) ...Dr. 99,500
Calls-in-Arrears A/c (WN 1) ...Dr. 500
To Equity Shares Allotment A/c 1,00,000
(Being the allotment money received after adjustment of advance
and balance in arrears)
Bank A/c ...Dr. 7,60,000
To Preference Shares Allotment A/c 7,50,000
To Calls-in-Advance A/c (500 × ` 20) 10,000
(Being the due amount received against preference shares allotment)
Equity Shares First and Final Call A/c ...Dr. 4,00,000
To Equity Share Capital A/c 4,00,000
(Being the first and final call due on 2,00,000 Equity Shares @ ` 2 each)