Whale Watching
HOLMES INSTITUTE
HA2032 CORPORATE ACCOUNTING
Lecture: Janine Coyle
Assignment 1
Submitted by binod dhital brb2091
Journal Entries of Merilah Company Ltd.
Date | Particulars | J.F. | Debit | Credit | 2011Aug 31 | Dr. Trust a/c (14000000@50C) Cr. Application a/c(Being share application amount received on 14000000 shares @ 50c each) | | 7000000 | 7000000 | Aug 31 | Dr. Bank a/c Cr. Trust a/c (Money deposit into bank) | | 7000000 | 7000000 | | Dr. Application a/c Cr Paid up Capital a/c Cr. Allotment a/c(calls in advance) (Being share allotment amount transferred to the related account) | | 7000000 | 50000002000000 | | Dr Allotment a/c(1000,000@40c)Cr Paid up Capital a/c (Being share allotment amount due on 10000000 shares @$0.40 each) | | 4000000 | 4000000 | | Dr. Bank a/cDr. Call in advance a/cCr. Allotment a/c | | 20000002000000 | 4000000 | 2011Nov 30 | Dr. Call a/c(10000000@10c)Cr Paid up capital a/c(call money received) | | 1000000 | 1000000 | 2012Jan 15 | Dr. Bank a/c (10000000-2000000@10c)Cr. Call a/c | | 800000 | 800000 | 2012Jan 15 | Dr. Paid up capital a/c(2000000@$1)Cr. Call a/cCr. Paid up capital a/c forfeited(Application-Allotment) | | 2000000 | 2000001800000 | 2012March 1 | Dr. Interim dividend a/cCr. Interim dividend payable a/c(interim dividend paid) | | 490000 | 490000 | 2012March 31 | Dr. Interim dividend payable a/cCr. Bank a/c( Being interim dividend 5%amount declared to the remaining share holders) | | 490000 | 490000 |
Difference between ordinary share and preference share
1. The dividend on ordinary share is uncertain and variable (high when the company does well or poor). Preference share holders get a fixed dividend.
2. Each ordinary share usually carries a vote. Preference share do not usually carry a vote unless dividend fall into arrears.
3. In the event of winding up, preference share are usually repayable at par
HA2032 CORPORATE ACCOUNTING
Lecture: Janine Coyle
Assignment 1
Submitted by binod dhital brb2091
Journal Entries of Merilah Company Ltd.
Date | Particulars | J.F. | Debit | Credit | 2011Aug 31 | Dr. Trust a/c (14000000@50C) Cr. Application a/c(Being share application amount received on 14000000 shares @ 50c each) | | 7000000 | 7000000 | Aug 31 | Dr. Bank a/c Cr. Trust a/c (Money deposit into bank) | | 7000000 | 7000000 | | Dr. Application a/c Cr Paid up Capital a/c Cr. Allotment a/c(calls in advance) (Being share allotment amount transferred to the related account) | | 7000000 | 50000002000000 | | Dr Allotment a/c(1000,000@40c)Cr Paid up Capital a/c (Being share allotment amount due on 10000000 shares @$0.40 each) | | 4000000 | 4000000 | | Dr. Bank a/cDr. Call in advance a/cCr. Allotment a/c | | 20000002000000 | 4000000 | 2011Nov 30 | Dr. Call a/c(10000000@10c)Cr Paid up capital a/c(call money received) | | 1000000 | 1000000 | 2012Jan 15 | Dr. Bank a/c (10000000-2000000@10c)Cr. Call a/c | | 800000 | 800000 | 2012Jan 15 | Dr. Paid up capital a/c(2000000@$1)Cr. Call a/cCr. Paid up capital a/c forfeited(Application-Allotment) | | 2000000 | 2000001800000 | 2012March 1 | Dr. Interim dividend a/cCr. Interim dividend payable a/c(interim dividend paid) | | 490000 | 490000 | 2012March 31 | Dr. Interim dividend payable a/cCr. Bank a/c( Being interim dividend 5%amount declared to the remaining share holders) | | 490000 | 490000 |
Difference between ordinary share and preference share
1. The dividend on ordinary share is uncertain and variable (high when the company does well or poor). Preference share holders get a fixed dividend.
2. Each ordinary share usually carries a vote. Preference share do not usually carry a vote unless dividend fall into arrears.
3. In the event of winding up, preference share are usually repayable at par