Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Z Ltd. purchased furniture costing ₹2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹100 each at a premium of ₹10 per share. Pass the necessary Journal entries in the books of Z Ltd.
JOURNAL (Books of Z Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Furniture A/c Dr. | 2,20,000 | |||
| To C.D Ltd. | 2,20,000 | |||
| (Furniture purchased from C.D Ltd.) | ||||
| C.D Ltd. Dr. | 2,20,000 | |||
| To 9% Preference Share Capital A/c (2,000 × ₹100) | 2,00,000 | |||
| To Securities Premium A/c (2,000 × ₹10) | 20,000 | |||
| (2,000 9% Preference Shares of ₹100 each issued at a ₹10 premium to C.D Ltd.) |
Working Note: Number of shares issued = 2,20,000 ÷ (100 + 10) = 2,000 shares.
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 "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.40 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.40 - Share Capital" instantly.