Question

A limited company offered for subscription of 1,00,000 equity shares of Rs.10 each at a premium of Rs.2 per share. 2,00,000. 10% Preference shares of Rs.10 each at par. The amount on share was payable as under :

The amount on share was payable as nunder

	Equity shares	preference shares
On Application	Rs.3 per share	Rs.per share
On alloment	Rs.5 per share (including a premium)	Rs. per share
On First call	Rs. per share	Rs. per share

All the shares were fully subscribed,called -up and paid.

Record these transactions in the journal and cash book of the company.

Answer 1

Note: Entries related to money received are directly taken in cash book. The entries for equity shares and preference shares can be made separately also.