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
Comments