Corporate Accounting - Maharshi Dayanand University, Rohtak

20 dEiuh ys[kkadu
tc iwokZfèkdkj ,oa lkekU;] nksuksa va'k fuxZfer fd, tkrs gSa
(When both Preference and Equity Shares are Issued)
tc ,d dEiuh iwokZfèkdj ,oa lkekU; nksuksa izdkj ds va'k fuxZfer djrh gS rc nks va'k iwath [kkrs iwokZfèkdkj va'k iwath
[kkrk ,oa lkekU; va'k iwath [kkrk [kksys tkrs gSaA blh izdkj va'k izkFkZuk [kkrk] va'k vkcaVu [kkrk ,oa ;kpuk [kkrs Hkh
nksuksa izdkj ds va'kksa ds fy, vyx&vyx [kksys tkrs gSA izR;sd fLFkfr esa iwokZfèkdkj (Preference) vkSj lkekU; (Equity)
'kCn fy[kuk vko';d gSA
Illustration 4.
A Company was floated with an authorised capital consisting of 20,000 9% Preference Shares of Rs. 100 each,
payable Rs. 25 per share on application, Rs. 25 per share on allotment and Rs. 50 per share on first and final call; and
3,00,000, Equity Shares of Rs. 10 each, payable Rs. 2.50 per share on application, Rs. 2.50 per share on allotment
and Rs. 5 per share on the first and final call. Applications were received for the whole of the Preference and Equity
Shares. All the money due on the shares was paid. Make the necessary entries and the Balance Sheet of the Company.
Solution.
JOURNAL ENTRIES
Bank Account Dr. 5,00,000
To Preference Share Application Account 5,00,000
(Being Preference Share Application money received on
20,000 shares @ Rs. 25 per share)
Bank Account Dr. 7,50,000
To Equity Share Application Account 7,00,000
(Being Equity Share Application money received on
3,00,000 Share @ Rs. 2.50 per share)
Preference Share Application Account Dr. 5,00,000
To Preference Share Capital Account 5,00,000
(Being Preference Share Application money transferred to
Capital Account)
Equity Share Application Account Dr. 7,50,000
To Equity Share Capital Account 7,50,000
(Being Equity Share Application money transferred to Capital Account)
Preference Share Allotment Account Dr. 5,00,000
To Preference Share Capital Account 5,00,000
(Being Preference Share allotment money due on 20,000
shares @ Rs. 25 per share as per the resolution of Board or Directors)
Equity Share Allotment Account Dr. 7,50,000
To Equity Share Capital Account 7,50,000