0444 Assignment No 1 Solution 2022-Autumn AiOU-Q 5 Ans-Advance Accounting
Q No 5
The Fortune Corporation was formed with an authorized capital as follows:
20,000, 10% preference shares of Rs. 100 each
100,000 ordinary shares of Rs. 100 each
5000 deferred shares of Rs. 10 each.
Required: Pass the necessary journal entries to record the following transactions:
i. Issued 3000 10% preference shares at par and cash received.
ii. Issued 10,000 ordinary shares of Rs. 100 each at Rs. 110. All amounts received in cash.
iii. Acquired Equipment costing Rs. 210,000 and issued 2000 10% preference shares of Rs. 100 each.
iv. Land valued Rs. 225,000 acquired and 2500, 10% preference shares were issued against its consideration.
v. Issued 2000 deferred shares of Rs. 10 each to promoters in recognition of services rendered by them.
