Page 355 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Solution:
Journal Entries in the books of P Ltd.
Dr. Cr.
S. No. Particulars LF.
1. Profit and loss Appropriation a/c Dr. 22,00,000
To Dividend Payable a/c 20,00,000
“ Corporate Tax on Dividend payable a/c 2,00,000
Appropriation of profits
2. Dividend Bank a/c Dr. 20,00,000
To Bank a/c 20,00,000
Transfer of dividend to a separate dividend Bank a/c
3. Dividend Payable a/c Dr. 20,00,000
To Dividend Bank a/c 20,00.000
Dividend from a separate bank a/c
4. Corporate dividend Tax Payable Dr. 2,00,000
To Bank a/c 2,00,000
Payment of corporate dividend tax
5. Profit and Loss a/c Dr. 50,00,000
To Bonus Issue a/c 50,00,000
Bonus declared
6. Bonus Issue a/c Dr. 50,00,000
To equity share capital a/c 50,00,000
Bonus shares issued
7. Bank a/c Dr. 70,00,000
To Equity Share Application & Allotment a/c 70,00,000
Right shares issued @ 14 per share
8. Equity share Application & Allotment a/c Dr. 70,00,000
To Equity share capital a/c 50,00,000
“ Securities Premium a/c 20,00,000
Balance Transferred
9. 12% Debentures a/c Dr. 1,20,00,000
Premium on Redemption a/c Dr. 4,80,000
To Debenture holders a/c 1,24,80,000
Amount payable to debenture holders
10. Debenture holders a/c Dr. 1,24,80,000
To Bank a/c 1,24,80,000
Paid off
11. Securities Premium a/c Dr. 4,80,000
To Premium of Redemption of debentures a/c 480,000
Balance Transferred

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