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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Goodluck Ltd. purchased machinery costing ₹10,00,000 from Fair Deals Ltd. The company paid the price by issuing Equity Shares of ₹10 each at a premium of 25%. Pass the necessary Journal entries in the books of Goodluck Ltd.
JOURNAL (Books of Goodluck Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Machinery A/c Dr. | 10,00,000 | |||
| To Fair Deals Ltd. | 10,00,000 | |||
| (Machinery purchased from Fair Deals Ltd.) | ||||
| Fair Deals Ltd. Dr. | 10,00,000 | |||
| To Equity Share Capital A/c | 8,00,000 | |||
| To Securities Premium A/c | 2,00,000 | |||
| (80,000 equity shares of ₹10 each issued at a 25% premium) |
Working Note: Number of shares issued = 10,00,000 ÷ (10 + 2.5) = 80,000 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.41 - 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.
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