The Balance Sheet of XYZ Ltd. as at 31st March, 2023 inter alia includes the following information: ₹ 1,00,000, 8% Preference Shares of 100 each, 70…

In the Books of XYZ Ltd Journal Entries Particulars ₹ 8% Preference Share Final Call A/c Dr. 30,00,000 To 8% Preference Share Capital A/c 30,00,000 (For final call made on preference shares @30 each to make them fully paid up) Bank A/c Dr. 30,00,000 To 8% Preference Share Final Call A/c 30,00,000 (For receipt of final call money on preference shares) Bank A/c Dr. 20,00,000 To Equity Share Application A/c 20,00,000 (For receipt of application money on 1,00,000 equity shares @20 per share) Equity Share Application A/c Dr. 20,00,000 To Equity Share Capital A/c 20,00,000 (For capitalisation of application money received) Equity Share Allotment A/c Dr. 35,00,000 To Equity Share Capital A/c 25,00,000 To Securities Premium A/c 10,00,000 (For allotment money due on 1,00,000 equity shares @35 per share including a premium of 10per share) Bank A/c Dr. 35,00,000 To Equity Share Allotment A/c 35,00,000 (For receipt of allotment money on equity shares) General Reserve A/c Dr. 55,00,000 To Capital Redemption Reserve A/c 55,00,000 (For transfer of CRR the amount not covered by the proceeds of fresh issue of equity shares i.e., 1,00,00,000 - 20,00,000 - 25,00,000) 8% Preference Share Capital A/c Dr. 1,00,00,000 Premium on Redemption of Preference Shares A/c Dr. 5,00,000 To Preference Shareholders A/c 1,05,00,000 (For amount payable to preference shareholders on redemption at 5% premium) Preference Shareholders A/c Dr. 1,05,00,000 To Bank A/c 1,05,00,000 (For amount paid to preference shareholders) General Reserve A/c Dr. 5,00,000 To Premium on Redemption A/c 5,00,000 (For writing off premium on redemption of preference shares) Note: On the redemption of redeemable preference shares out of accumulated divisible profits, it will be necessary to transfer to the Capital Redemption Reserve Account an amount equal to the amount repaid on the redemption of preference shares on account of face value less proceeds of a fresh issue of shares made for the purpose of redemption.