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7. Jharkhand Ltd. was registered with a capital of 10,00,000 divided into shares of 10. Company Purchased a machine from Bihar Ltd. for 1,50,000. Jharkhand Ltd. issuedequity shares of 10 each fully paid in payment of claim.Pass Journal Entries in the books of Bihar Ltd.Ans. No of Enuity Shares to be Issued 15,000]​

Answer»

(1) Machinery a/c. Dr ₹1,50,000 To Bihar Ltd. ₹1,50,000(Being machinery purchased) (2) Bihar a/c. Dr ₹1,50,000 To Equity Share Capital a/c. ₹1,50,000(Being the purchase CONSIDERATION satisfied by issuing 15,000 shares @10 PER share issue at par as per Board's Resolution No.... Dated....) EXPLANATION:Workings - No. of shares ISSUED = ₹1,50,000/₹10 = ₹15,000



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