Rajan Ltd Purchased assets from Geeta & Co. for 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft
Rajan Ltd Purchased assets from Geeta & Co. for 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued Equity Shares of ₹ 10 each at a premium of 25%.
Journalise the above transactions in the books of the company.
[Ans.: 32,000 Equity Shares to be issued.]
Anurag Pathak Changed status to publish September 3, 2023
Solution:-
Alternatively (2) and (3) entries can also be combined as
| Particulars | Dr. | Cr. |
| Geeta & Co. A/c Dr. To Bank A/c To Equity Share Capital A/c To Securities Premium A/c |
5,00,000 | 1,00,000 3,20,000 80,000 |
Anurag Pathak Changed status to publish March 17, 2024
Yes, Alternatively, (2) and (3) entries can also be combined like yours.
Assets A/C dr 500000
To Geeta and company A/C 500000
Geeta and company A/c Dr 500000
To share capital 320000
To bank A/C 100000
To SPR 80000