No. 5(b): Preparation of journal entries to record the issuance of the remaining ordinary shares and preference shares and the redemption of some of the debentures:
2. The remaining balance of preference shares = Authorized preference share capital – Issued preference share capital, i.e. 100,000 – 83,000 = 17,000 shares. There is no premium on the preference shares as they were
issued at their par value of $1.
Below are the journal entries to record the transactions of Aries Limited that took place on 1st April, 2011.
The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.