Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Sona Ltd. purchased machinery costing ₹17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque, and for the balance, issued Equity Shares of ₹100 each at a premium of 25%. Pass the necessary Journal entries, showing your working notes clearly.
JOURNAL (Books of Sona Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Machinery A/c Dr. | 17,00,000 | |||
| To Mona Ltd. | 17,00,000 | |||
| (Machinery purchased on credit from Mona Ltd.) | ||||
| Mona Ltd. Dr. | 3,40,000 | |||
| To Bank A/c | 3,40,000 | |||
| (20% of the amount paid by cheque) | ||||
| Mona Ltd. (17,00,000 – 3,40,000) Dr. | 13,60,000 | |||
| To Equity Share Capital A/c | 10,88,000 | |||
| To Securities Premium A/c | 2,72,000 | |||
| (10,880 shares of ₹100 each issued to Mona Ltd. at a 25% premium) |
Working Notes: Number of shares = balance purchase consideration ÷ (face value + premium) = 13,60,000 ÷ (100 + 25) = 10,880 shares. Share Capital = 10,880 × 100 = ₹10,88,000. Securities Premium = 10,88,000 × 25/100 = ₹2,72,000.
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.43 - 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.43 - Share Capital" instantly.