Page 83 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

`
Particulars
`
Date

August 1
Capital Account
Dr.

67,500
Premium on Redemption Account

8% Redeemable Preference Shares Dr. L.F. 13,50,000 14,17,500
To Preference Shareholders

Account
(Being amount due to preference
shareholders on redemption)
Bank Account Dr. 6,60,000
Accounting for Companies-I To Equity Share Capital Account 6,00,000
To Share Premium Account 60,000
(Being receipt of amount from the
issue of new shares)
Notes Share Premium Account Dr. 67,500
To Premium on Redemption 67,500
Account
(Being utilisation of share premium
in writing off the premium on
redemption of preference shares)
General Reserve Account Dr. 7,50,000
To Capital Redemption Reserve 7,50,000
Account
(Being utilisation of general reserve
for the redemption of preference
shares)
Bank Account Dr. 4,80,000
To Bonds of ICICI Account 4,35,000
To Profit and Loss Account 45,000
(Being the proceeds of sale of
investments and profit transferred to
P & L Account.)
Preference Shareholders Account Dr. 14,17,500
To Bank Account 14,17,500
(Being payment made to
shareholders on redemption of
preference shares)
Capital Redemption Reserve Dr. 7,50,000
Account
Share Premium Account Dr. 52,500
General Reserve Account Dr. 3,97,500
To Bonus to Shareholders 12,00,000
Account
(Being utilisation of Capital
Redemption Reserve Share Premium
and General Reserve for declaration
of bonus)
Bonus to Shareholders Account Dr. 12,00,000
To Equity Share Capital Account 12,00,000
(Being issue of one bonus share to
every three of shares)

Balance Sheet of Kavita Limited as on 1st April, 2006

Liabilities ` Assets `
Share Capital: Fixed Assets:
Authorised 60,00,000 Land and Buildings 25,00,000
Issued and Subscribed: Plant and Machinery 20,00,000
4,80,000 equity shares of ` 10 each fully Furniture and Fittings 11,70,000
paid up (of the above 60,000 equity 48,00,000
shares are issues as fully paid up bonus
shares)
Reserve & Surplus: Current Assets:
Loans and Advances:
Capital Reserve 37,500 Stock 15,00,000
Contd...
General Reserve 13,44,000 Debtors 16,59,000
Profit and Loss Account (11,61,000 + 12,06,000 Cash in hand 53,000
45,000)
76 LOVELY PROFESSIONAL UNIVERSITY
Current Liabilities and Provisions: Cash at bank 2,500
Sundry Creditors 10,00,000 Unexpired
Provision for Taxation 5,00,000 Insurance 3,000
88,87,500 88,87,500