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Sagot :
Certainly! Below is a detailed solution showing the accounting treatment of the issue of shares for Kiran Textiles Ltd.
### Journal Entries:
1. On Application:
For Equity Shares Application Received:
```
Bank A/c Dr. ₹1,75,000
To Equity Share Application A/c ₹1,75,000
(Being application money received on 50,000 equity shares at ₹3.50 each)
```
For Preference Shares Application Received:
```
Bank A/c Dr. ₹60,000
To Preference Share Application A/c ₹60,000
(Being application money received on 2,000 preference shares at ₹30 each)
```
Transfer of Application money to Share Capital:
```
Equity Share Application A/c Dr. ₹1,75,000
To Equity Share Capital A/c ₹1,75,000
(Being transfer of equity share application money to equity share capital)
```
```
Preference Share Application A/c Dr. ₹60,000
To Preference Share Capital A/c ₹60,000
(Being transfer of preference share application money to preference share capital)
```
2. On Allotment:
For Equity Shares Allotment Due:
```
Equity Share Allotment A/c Dr. ₹3,25,000
To Equity Share Capital A/c ₹2,50,000
To Securities Premium A/c ₹75,000
(Being allotment money due on 50,000 equity shares including premium of ₹2 each)
```
For Preference Shares Allotment Due:
```
Preference Share Allotment A/c Dr. ₹40,000
To Preference Share Capital A/c ₹40,000
(Being allotment money due on 2,000 preference shares at ₹20 each)
```
Receipt of Allotment Money:
```
Bank A/c Dr. ₹3,25,000
To Equity Share Allotment A/c ₹3,25,000
(Being allotment money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹40,000
To Preference Share Allotment A/c ₹40,000
(Being allotment money received on 2,000 preference shares)
```
3. On First Call:
For Equity Shares First Call Due:
```
Equity Share First Call A/c Dr. ₹1,00,000
To Equity Share Capital A/c ₹1,00,000
(Being first call money due on 50,000 equity shares at ₹2 each)
```
For Preference Shares First Call Due:
```
Preference Share First Call A/c Dr. ₹50,000
To Preference Share Capital A/c ₹50,000
(Being first call money due on 2,000 preference shares at ₹25 each)
```
Receipt of First Call Money:
```
Bank A/c Dr. ₹1,00,000
To Equity Share First Call A/c ₹1,00,000
(Being first call money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹50,000
To Preference Share First Call A/c ₹50,000
(Being first call money received on 2,000 preference shares)
```
4. On Final Call:
For Equity Shares Final Call Due:
```
Equity Share Final Call A/c Dr. ₹1,00,000
To Equity Share Capital A/c ₹1,00,000
(Being final call money due on 50,000 equity shares at ₹2 each)
```
For Preference Shares Final Call Due:
```
Preference Share Final Call A/c Dr. ₹50,000
To Preference Share Capital A/c ₹50,000
(Being final call money due on 2,000 preference shares at ₹25 each)
```
Receipt of Final Call Money:
```
Bank A/c Dr. ₹1,00,000
To Equity Share Final Call A/c ₹1,00,000
(Being final call money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹50,000
To Preference Share Final Call A/c ₹50,000
(Being final call money received on 2,000 preference shares)
```
### Cash Book Entries:
The cash book will reflect all the deposits made into the bank on application, allotment, first call and final call stages.
1. Receipts on Application:
```
To Equity Share Application A/c ₹1,75,000
To Preference Share Application A/c ₹60,000
```
2. Receipts on Allotment:
```
To Equity Share Allotment A/c ₹3,25,000
To Preference Share Allotment A/c ₹40,000
```
3. Receipts on First Call:
```
To Equity Share First Call A/c ₹1,00,000
To Preference Share First Call A/c ₹50,000
```
4. Receipts on Final Call:
```
To Equity Share Final Call A/c ₹1,00,000
To Preference Share Final Call A/c ₹50,000
```
By following these entries, the company can accurately account for the issue and realization of funds from the equity and preference shares issued.
### Journal Entries:
1. On Application:
For Equity Shares Application Received:
```
Bank A/c Dr. ₹1,75,000
To Equity Share Application A/c ₹1,75,000
(Being application money received on 50,000 equity shares at ₹3.50 each)
```
For Preference Shares Application Received:
```
Bank A/c Dr. ₹60,000
To Preference Share Application A/c ₹60,000
(Being application money received on 2,000 preference shares at ₹30 each)
```
Transfer of Application money to Share Capital:
```
Equity Share Application A/c Dr. ₹1,75,000
To Equity Share Capital A/c ₹1,75,000
(Being transfer of equity share application money to equity share capital)
```
```
Preference Share Application A/c Dr. ₹60,000
To Preference Share Capital A/c ₹60,000
(Being transfer of preference share application money to preference share capital)
```
2. On Allotment:
For Equity Shares Allotment Due:
```
Equity Share Allotment A/c Dr. ₹3,25,000
To Equity Share Capital A/c ₹2,50,000
To Securities Premium A/c ₹75,000
(Being allotment money due on 50,000 equity shares including premium of ₹2 each)
```
For Preference Shares Allotment Due:
```
Preference Share Allotment A/c Dr. ₹40,000
To Preference Share Capital A/c ₹40,000
(Being allotment money due on 2,000 preference shares at ₹20 each)
```
Receipt of Allotment Money:
```
Bank A/c Dr. ₹3,25,000
To Equity Share Allotment A/c ₹3,25,000
(Being allotment money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹40,000
To Preference Share Allotment A/c ₹40,000
(Being allotment money received on 2,000 preference shares)
```
3. On First Call:
For Equity Shares First Call Due:
```
Equity Share First Call A/c Dr. ₹1,00,000
To Equity Share Capital A/c ₹1,00,000
(Being first call money due on 50,000 equity shares at ₹2 each)
```
For Preference Shares First Call Due:
```
Preference Share First Call A/c Dr. ₹50,000
To Preference Share Capital A/c ₹50,000
(Being first call money due on 2,000 preference shares at ₹25 each)
```
Receipt of First Call Money:
```
Bank A/c Dr. ₹1,00,000
To Equity Share First Call A/c ₹1,00,000
(Being first call money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹50,000
To Preference Share First Call A/c ₹50,000
(Being first call money received on 2,000 preference shares)
```
4. On Final Call:
For Equity Shares Final Call Due:
```
Equity Share Final Call A/c Dr. ₹1,00,000
To Equity Share Capital A/c ₹1,00,000
(Being final call money due on 50,000 equity shares at ₹2 each)
```
For Preference Shares Final Call Due:
```
Preference Share Final Call A/c Dr. ₹50,000
To Preference Share Capital A/c ₹50,000
(Being final call money due on 2,000 preference shares at ₹25 each)
```
Receipt of Final Call Money:
```
Bank A/c Dr. ₹1,00,000
To Equity Share Final Call A/c ₹1,00,000
(Being final call money received on 50,000 equity shares)
```
```
Bank A/c Dr. ₹50,000
To Preference Share Final Call A/c ₹50,000
(Being final call money received on 2,000 preference shares)
```
### Cash Book Entries:
The cash book will reflect all the deposits made into the bank on application, allotment, first call and final call stages.
1. Receipts on Application:
```
To Equity Share Application A/c ₹1,75,000
To Preference Share Application A/c ₹60,000
```
2. Receipts on Allotment:
```
To Equity Share Allotment A/c ₹3,25,000
To Preference Share Allotment A/c ₹40,000
```
3. Receipts on First Call:
```
To Equity Share First Call A/c ₹1,00,000
To Preference Share First Call A/c ₹50,000
```
4. Receipts on Final Call:
```
To Equity Share Final Call A/c ₹1,00,000
To Preference Share Final Call A/c ₹50,000
```
By following these entries, the company can accurately account for the issue and realization of funds from the equity and preference shares issued.
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