[discussion_vu] FIN621 IDEA SOLUTION

IDEA Solution

1)
Cash/Bank 750,000
To share capital 500,000
To share premium 250,000
(Issuance of common shares at premium)

2)
Preliminary expenses 14,000
To share capital 10,000
To share premium 4,000
(Paid to Mr.Ali 1,000 shares of common stock in consideration of initial services)

3)
Cash/Bank 300,000
To share capital(preferred) 300,000
(issued 3,000 shares of preferred stock at par)

4)
Printing machinery 150,000
To share capital 100,000
To share premium 50,000
(issued 10,000 shares of common stock in consideration of printing machinery)

5)
Income summary 30,000
To Dividend 30,000
(Declaration of dividend)
Dividend 30,000
To Cash/Bank 30,000
(Paid dividend in cash)

6)
Income summary 120,000
To retained earnings 120,000
(Earned profit of Rs.120,000)

HERE IS THE SOLUTION OF PART B 

1)
Cash/Bank 750,000
To share capital 500,000
To share premium 250,000
(Issuance of common shares at premium)

2)
Preliminary expenses 14,000
To share capital 10,000
To share premium 4,000
(Paid to Mr.Ali 1,000 shares of common stock in consideration of initial services)

3)
Cash/Bank 300,000
To share capital(preferred) 300,000
(issued 3,000 shares of preferred stock at par)

4)
Printing machinery 150,000
To share capital 100,000
To share premium 50,000
(issued 10,000 shares of common stock in consideration of printing machinery)

5)
Income summary 30,000
To Dividend 30,000
(Declaration of dividend)
Dividend 30,000
To Cash/Bank 30,000
(Paid dividend in cash)

6)
Income summary 120,000
To retained earnings 120,000
(Earned profit of Rs.120,000)

Remember Me In Your Prayers
Best regard's
Muhammad Afaaq
MBA 4^th (Final Semester) Finance Group
0346-5329264
Islamabad

Afaaq_Tariq@yahoo.com

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If not then raise ur standard
That's about me … !

--

Asslam O Alikum

Remember Me In Your Prayers
Best regard's
Muhammad Afaaq
MBA 4^th (Final Semester) Finance Group
0346-5329264
Islamabad

Afaaq_Tariq@yahoo.com

For latest assignments solved quizzes files gdb solve n unsolved past papers Come join us in

 

http://vugoogle.com

 

http://www.alliswell.com.pk/

http://groups.google.com/group/vustudymania


If u like me than raise your hand with me
If not then raise ur standard
That's about me … !

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