0444 Assignment No 1 Solution 2022-Autumn AiOU-Q 5 Ans-Advance Accounting
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.
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.
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LearningTranscript
00:00bismillahirrahmanirrahim assalamualaikum dear students and viewers welcome to my
00:03youtube channel digiland advice this video covers the solution of question
00:07number five of assignment number one of the subject advanced accounting and has
00:14subject code triple four zero triple four and that is related to the attempt
00:192022 and it is the part of the examination AIOU system so let's start
00:25the question then we will go to the requirements and finally we will see the
00:30solution of this question so the fortune corporation was found was formed with an
00:37authorized capital as follows for 20,000 shares 10% preference shares of rupees
00:43hundred each this is a part value under thousand ordinary shares of rupees
00:48hundred each part value 5000 different shares of rupees 10 each this is also a
00:56part value required so I am going to be little bit highlight this one by
01:03bolding it what is necessary general interest to record the positive
01:09transactions issued 3,000 share 10% preferential that part and cash received
01:17issued 10,000 ordinary shares of rupees hundred each at rupees 110 means more
01:22than part value it means 10% premium all amounts received in cash no bank
01:27account is involved acquired equipment costing rupees 210,000 and issued
01:33210% preference shares of rupees hundred it is clear from the debt if it will be
01:39issued on against hundred rupees the amount should be two hundred thousand
01:44but it is 210,000 it means it has been also issued on premium equal to
01:5110% premium land values of rupees 225 acquired and 25 under 10% preference
01:59shares were issued and get its consideration consideration means its
02:02value or price cost issued 2,000 deferred shares of rupees 10 each to
02:08promote promoters in recognition of services vendors buy them so here is the
02:15solution part one so I am going to return a bank account utilize a place
02:19cash count 300,000 as 3,000 shares has been launched for at par at par so at
02:30par means at hundred rupees so we will get cash in rupees 300,000 to preference
02:36shares you can write here 10% rupees 300,000 part 2 cash count again check
02:47this one issue 10,000 or new shares at 110 rupees more than its part value so
02:56its value is 100 1100,000 or 1.5 million to share capital is going to be 1
03:05million and the share premium account is is 100,000 above this part value amount
03:11part 3 equipment account we have purchased and guess issuing the
03:15preference shares again of 10% 210,000 so to share preference capital account
03:21210,000 and to premium preference share capital account is equal to 10,000 above
03:28the this amount so part 4 value of the land rupees 225 and guess 2,500
03:33shares of 10% so if we will issue this if we will issue the preference share
03:4710% preference share at par value so it will be 20 250,000 but it is less than
03:53250,000 by 25,000 it means that we have purchased the land at and discount price
04:01so what is the discount it means it is then it is 10% discount how I am going
04:08to determine this issue price is 225,000 divided by number of shares equal to
04:13rupees 90 as compared with the part value which is rupees 100 so it is less
04:19than 100 100 minus 90 is equal to 10 but 10 and 10 divided by 100 it means 10%
04:27discount so our generality will be land account is equal to 125,000 discount
04:33preference shares account and 25,000 to preference and share capital account is
04:40equal to 250,000 part 5 promoters services account to defer share capital
04:47please write here defer share capital 200,000 so granted 2,000 earning shares
04:59of rupees 100 each to promoter for their services because and the part value of
05:04the defer share is also 100 sorry it is 10 so let me correct this so 2,000 so it
05:22means it is 20,000 so the solution is finished here I hope you will find this
05:34useful for you if you have any question or query regarding the solution you
05:40please ask me in the comment section or if you find if you want to add something
05:45more from your side to improve the solution please come up with your
05:49suggestion in comment section and last request is that if you found any kind of
05:55calculation mistake please must be mentioned comment section in order to
06:01make it more beneficial for the viewers thanks for watching assalamu alaikum