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Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited?
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Bittu publication house limited katihar issued 15000 preference shares...
Journal Entries for the Issuance of Preference Shares in the Books of Bittu Publication House Limited:
To record the issuance of preference shares and the receipt of money, the following journal entries need to be made:
1. Initial Receipt of Application Money:
- Preference Share Application A/c Dr. 1,000,000
- Bank A/c Cr. 1,000,000
2. Allotment of Preference Shares:
- Preference Share Application A/c Dr. 1,000,000
- Preference Share Allotment A/c Cr. 1,000,000
3. Receipt of Allotment Money:
- Preference Share Allotment A/c Dr. 1,000,000
- Bank A/c Cr. 1,000,000
4. Final Receipt of Money:
- Preference Share Allotment A/c Dr. 800,000
- Bank A/c Cr. 800,000
Explanation:
1. Initial Receipt of Application Money:
- Preference Share Application A/c is debited to record the receipt of application money. This account represents the amount received from the applicants for the preference shares.
- Bank A/c is credited as the money is received in the company's bank account.
2. Allotment of Preference Shares:
- Preference Share Application A/c is debited to transfer the application money to the allotment account.
- Preference Share Allotment A/c is credited to record the allotment of preference shares to the applicants. This account represents the amount to be paid by the applicants for the allotted shares.
3. Receipt of Allotment Money:
- Preference Share Allotment A/c is debited to transfer the allotment money to the final receipt account.
- Bank A/c is credited as the allotment money is received in the company's bank account.
4. Final Receipt of Money:
- Preference Share Allotment A/c is debited to transfer the final receipt of money.
- Bank A/c is credited to record the receipt of the final installment of money from the applicants.
These journal entries help in maintaining a proper record of the issuance of preference shares and the receipt of money from the applicants. They ensure transparency and accuracy in the financial statements of Bittu Publication House Limited.
To record the issuance of preference shares and the receipt of money, the following journal entries need to be made:
1. Initial Receipt of Application Money:
- Preference Share Application A/c Dr. 1,000,000
- Bank A/c Cr. 1,000,000
2. Allotment of Preference Shares:
- Preference Share Application A/c Dr. 1,000,000
- Preference Share Allotment A/c Cr. 1,000,000
3. Receipt of Allotment Money:
- Preference Share Allotment A/c Dr. 1,000,000
- Bank A/c Cr. 1,000,000
4. Final Receipt of Money:
- Preference Share Allotment A/c Dr. 800,000
- Bank A/c Cr. 800,000
Explanation:
1. Initial Receipt of Application Money:
- Preference Share Application A/c is debited to record the receipt of application money. This account represents the amount received from the applicants for the preference shares.
- Bank A/c is credited as the money is received in the company's bank account.
2. Allotment of Preference Shares:
- Preference Share Application A/c is debited to transfer the application money to the allotment account.
- Preference Share Allotment A/c is credited to record the allotment of preference shares to the applicants. This account represents the amount to be paid by the applicants for the allotted shares.
3. Receipt of Allotment Money:
- Preference Share Allotment A/c is debited to transfer the allotment money to the final receipt account.
- Bank A/c is credited as the allotment money is received in the company's bank account.
4. Final Receipt of Money:
- Preference Share Allotment A/c is debited to transfer the final receipt of money.
- Bank A/c is credited to record the receipt of the final installment of money from the applicants.
These journal entries help in maintaining a proper record of the issuance of preference shares and the receipt of money from the applicants. They ensure transparency and accuracy in the financial statements of Bittu Publication House Limited.
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Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited?
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Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited?.
Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bittu publication house limited katihar issued 15000 preference shares of 100 each payable as follows the applications were received for 10000 preference shares and these were allotted all money due were received journalise these transactions in the books of Bittu publication house limited?.
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