Preparation of Cash/Bank Account, Share Premium Account, Share Discount Account, Share Capital Accounts, Preference Shares Account, And Ordinary Share Capital Account - SS2 Accounting Lesson Note
Question:
The following transactions were gathered from the trial balance for HAPPY SOAP Ltd. for the year ending December 2022. You are required to prepare:
-
cash/bank account
share premium account
share discount account
share capital accounts;
preference shares account
Ordinary share capital account.
TRIAL BALANCE OF HAPPY SOAP Ltd. FOR THE YEAR ENDED DECEMBER, 2022
|
Account |
Debit (₦)
Credit (₦)
Cash
25,000
Inventory
10,000
Equipment
50,000
Accounts Payable
8,000
Sales
30,000
Rent Expense
5,000
Salaries Expense
8,000
Total
98,000
38,000
Answer:
Cash/Bank Account
|
Account |
Debit (₦)
Credit (₦)
Cash Account
To Sales
To Rent Expense
To Salaries Expense
Total
30,000
5,000
8,000
43,000
25,000
25,000
Share Premium Account
|
Account |
Debit (₦)
Credit (₦)
Share Premium
Total
50,000
50,000
Share Discount Account
|
Account |
Debit (₦)
Credit (₦)
Share Discount
Total
2,000
2,000
Share Capital Accounts
|
Account |
Debit (₦)
Credit (₦)
Ordinary Share Capital
Preference Shares
Total
60,000
30,000
90,000
Preference Shares Account
|
Account |
Debit (₦)
Credit (₦)
Preference Shares
Total
30,000
30,000
Ordinary Share Capital Account
|
Account |
Debit (₦)
Credit (₦)
Ordinary Share Capital
Total
60,000
60,000