Preference Shares

(Issue of Two Classes of Shares). DSC Power Ltd. Offered to public on 1st April, 2019, 1,00,000 Equity Shares and 50,000 Preference Shares of Rs. 10 each payable as under: {:(,"Equity Shares (Rs.)","Preference Shares (Rs.)"),("On application"," 3"," 3"),("On allotment (1 st May)"," 3"," 4"),("On first and final call (1 st September)", " 4"," 3"):} Subscription was received for 1,20,000 Equity Shares and 45,000 Preference Shares. Applications for Preference Shares were accepted in full. Out of applications for Equity Shares, applications for 10,000 shares were rejected, applications for 85,000 shares accepted in full and 15,000 shares were allotted to the remaining applicants. All amounts were received except the amount due on call on 1,000 Equity Shares and 500 Preference Shares. Pass entries in the Cash Book and Journal.

From the following information calculate Cash Flow from Financing Activites. (i) Equity Shares were issued at a premium of 20 % (ii) 12% Preference Shares were redeemed at par (iii) 14 % Debentures were issued at a (iv) Interim dividend paid on Equity Shares ₹1,50,000 (v ) Interest paid on 14% Debentures ₹ 35,000. (vi) Underwriting Commission on Equity Shares ₹20,000. (vii) Dividend paid on Preference Shares 60,000.

Following is the extract of Balance Sheet as at 31st March, 2019 of a company: Additional Information: 1. Interim dividend on Equity Shares at the end of current year was paid @ 15%. 2. Dividend on Preference Shares was 3. Preference Shares were redeemed at a premium of 5% on 31st March, 2019. 4. New shares and debentures were issued on the last date of current year. Determine Cash Flow from Financing Activities.

Modern Marbles Ltd. was registered with an authorised capital of Rs. 10,00,000 divided into 7,500 Equity Shares of Rs. 100 each and 2,500 Preference Shares of Rs. 100 each. 1,000 Equity Shares and 500,9% Preference Shares were offered to public on the following terms-Equity Shares payable Rs. 10 on application, Rs. 10 on allotment and the balance in two calls of Rs. 25 each. Preference Shares are payable Rs. 25 on application, Rs. 25 on allotment and Rs. 50 on first and final call. All the shares were applied for and allotted. Amount due was duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares and show how the Share Capital will appear in the Balance Sheet.

A limited company offered for subscription 10,000 Equity Shares of Rs 10 each at a premium of Rs 2 per share and 5,000, 10% Preference Shares of Rs 10 each at par. The amount on equity shares was payable as thus : {:("On Application","Rs 3 per share"),("On Allotment","Rs 5 per share ( including a premium)"),("On Fist Call","Rs 4 per share"):} The amount of preference shares was payable as follows : {:("On Application","Rs 3 per share"),("On Allotment","Rs 4 per share"),("On Fist Call","Rs 3 per share"):} All the shares were fully subscribed, called-up and paid. Record these transactions in the journal and cash book of the company.

Z Ltd. purchased furniture costing Rs. 2,20,000 from C.D. Ltd. The payment was to be made by issue of 9% Preference Shares of Rs. 100 each at a premium of Rs. 10 per share. Pass necessary Journal entries in the books of Z Ltd.

Z Ltd. purchased furniture costing Rs. 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of Rs. 100 each at a premium of Rs. 10 per share. Pass necessary Journal entries in the books of Z Ltd.