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X Ltd. purchased furniture of Rs. 10,00,000 from Y Ltd.and paid 20% of the amount by accepting a bill of exchange in favour of Y Led. The remaining amount was paid by issuing equity shares of Rs. 100 each at a premium of 25% to Y Led. Showing your working notes clearly, passnecessary Journal entries for the above transactions in the books of X Ltd.

Answer» <html><body><p></p>Solution :(i) Dr. Furniture A/c and Cr. Y Ltd. By Rs. 10,00,000. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) Dr. Y Ltd. - Rs. 10,00,000, <br/> Cr. Bills Payable A/c - Rs. 2,00,000, Equity Share Capital A/c - Rs. 6,40,000 and Securities <a href="https://interviewquestions.tuteehub.com/tag/premium-2555" style="font-weight:bold;" target="_blank" title="Click to know more about PREMIUM">PREMIUM</a> Reserve A/c - Rs. 1,60,000. <br/> <a href="https://interviewquestions.tuteehub.com/tag/note-1125278" style="font-weight:bold;" target="_blank" title="Click to know more about NOTE">NOTE</a>: No. of Equity Shares to be Issued = (Purchase Price- Payment through Bill of Exchange) `<a href="https://interviewquestions.tuteehub.com/tag/div-432075" style="font-weight:bold;" target="_blank" title="Click to know more about DIV">DIV</a>` Issue Price<br/> = (Rs. 10,00,000 - Rs. 2,00,000)` div` Rs. 125 = 6,400 shares.</body></html>


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