Whale Watching

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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/cCr. Trust a/c(Money deposit into bank)| | 7000000| 7000000| | Dr. Application a/cCr Paid up Capital a/cCr. 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 value,...
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