1.

Alankrit Ltd. purchased machinery of ₹ 10,00,000 from Grand Iron Works Ltd. and paid as follows:(a) Issued 50,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.(b) Gave an acceptance of ₹ 3,00,000 payable after 3 months; and(c) Balance by issuing post-dated cheque of two months of ₹ 1,00,000.Pass the Journal entries in the books of Alankrit Ltd. and Grand Iron Works Ltd.

Answer» Alankrit Ltd. purchased machinery of ₹ 10,00,000 from Grand Iron Works Ltd. and paid as follows:

(a) Issued 50,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.

(b) Gave an acceptance of ₹ 3,00,000 payable after 3 months; and

(c) Balance by issuing post-dated cheque of two months of ₹ 1,00,000.

Pass the Journal entries in the books of Alankrit Ltd. and Grand Iron Works Ltd.


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