1.

Rocky Ltd. Purchased assets of Rs.4,50,000 from Bose Ltd. Payment was made by issuing shares of Rs10 each at a premium of Rs.5 each. Pass necessary Journal Entries.

Answer»

Bose ltd A/c. Dr 450000
To SHARE CAPITAL. 300000
To SECURITY Premium. 150000

Working note
450000/15 = 30000
Face value = 30000*10 = 300000
Premium = 30000*5 = 150000



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