Page 131 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Share Premium Account Dr. 250
To Premium on Redemption Account 250
(Being share premium utilised in writing off the premium on
redemption)
Bank Account Dr. 50,250
To Equity Share Capital Account 50,000
To Share Premium Account 250
(Being receipt of amount from the issue of shares for redemption)
Preference Shareholders Account Dr. 50,250
To Bank Account 50,250
(Being payment made to shareholders on redemption)
(iii) 10% Redeemable Preference Share Capital Account Dr. 5,00,000
To Preference Shareholders Account 5,00,000
(Being amount due to shareholders on redemption of preference
shares)
Profit and Loss Account Dr. 5,00,000
To Capital Redemption Reserve A/c 5,00,000
(Being utilisation of profit for the redemption of preference shares)
Preference Shareholders Account Dr. 5,00,000
To Bank Account 5,00,000
(Being payment made to shareholders on redemption of preference
shares)
(iv) 9% Redeemable Preference Share Capital Account Dr. 5,00,000
Premium on Redemption Account Dr. 50,000
To Preference Shareholders Account 5,50,000
(Being amount due to shareholders on redemption of preference
shares)
Bank Account Dr. 4,40,000
To Equity Share Capital Account 4,00,000
To Share Premium Account 40,000
(Being receipt of amount from the issue of shares at premium)
Share Premium Account Dr. 40,000
Profit & Loss Account Dr. 10,000
To Premium on Redemption Account 50,000
(Being the utilisation of share premium and profit in writing off
premium on redemption)
Profit and Loss Account Dr. 1,00,000
To Capital Redemption Reserve Account 1,00,000
(Being utilisation of profit for redemption of preference shares)
Preference Shareholders Account Dr. 5,50,000
To Bank Account 5,50,000
(Being payment made to share holders on redemption of preference
shares)
(v) 7% Redeemable Preference Share Capital Account Dr. 25,00,000
To Preference Shareholders Account 25,00,000
(Being amount payable to preference shareholder on redemption)
Bank Account Dr. 22,50,000
Contd...
Discount on Issue of Shares Account Dr. 2,50,000
To Equity Share Capital Account 25,00,000
(Being receipt of amount from issue of shares at discount)
124 LOVELY PROFESSIONAL UNIVERSITY
Profit and Loss Account Dr. 2,50,000
To Capital Redemption Reserve Account 2,50,000