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Question 25 Chapter 8 of +2-Part-1
25. (Shares Issued for Consideration other than Cash) Gurjap Ltd. purchased plant from Santosh for Rs. 3,78,000 payable in fully paid shares of Rs. 10 each pass journal entries when :
Shares are issued at par
Shares are issued at 20% premium.
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| A) | Plant A/c | Dr. | 3,78,000 | ||
| To Santosh A/c | 3,78,000 | ||||
| (Being purchase of plant from Santosh) | |||||
| Case A - Shares are issued at par |
|||||
| B) | Santosh A/c | Dr. | 3,78,000 | ||
| To Share capital A/c | 3,78,000 | ||||
| (Being price of plant purchased paid in shares issues at par ) | |||||
| Case B - Shares are issued at 20% premium. | |||||
| B) | Santosh A/c | Dr. | 3,78,000 | ||
| To Share capital A/c WN-1 | 3,15,000 | ||||
| To Securities Premium A/c WN-1 | 63,000 | ||||
| (Being price of plant paid in shares being issued at 20 % premium) | |||||
Total Value of Share = Face Value + Premium
= 10 + (10 * 20/100)
= 10 + 2
= 12/-
Now, We can calculated the total no. of share to be issued for purchase of plant
No. of Share = Total purchase amount of plant / Total value of Share
= 3,78,000 / 12
= 31,500
So now we can calculate the total amount of Share and Premium
Total Face Value of Share = No. of Shares X Face Value Per share
= 31,500 X 10
= 3,15,000/-
Total amount of Security Premium = No. of Shares X Premium Per share
= 31,500 X 2
= 63,000/-
It all about Question 25 Chapter 8 of +2-Part-1, If you have any problem please comment below.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 25 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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