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Goodluck Ltd purchased machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%. Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd. |
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Answer» mount of MACHINERY = 10,00,000Price of SHARES = 10Premium = 25%To Find:Journal entriesSolution:Number of shares = 10,00,000 ( 10 + 2.5) ( 25% premium)= 10,00,000/12.5= 80,0001. Machinery A/c Dr. 10,00,000To FAIR DEALS A/c 10,00,000( Being machinery purchased)2. Fair Deals Ltd. A/c Dr. 10,00,000To Equity Share CAPITAL 8,00,000To Securities Premium 2,00,000( Being 80,000 shares issued @ 10 at 25% premium) |
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