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.
The solution of Question 25 Chapter 8 of +2 Part-1: –
| 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. | 6,64,000 | ||
| 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) | |||||
Working notes of Question 25 Chapter 8 of +2-Part-1:
WN – 1 – Calculation of Amount of Shares and premium when 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.
You can also Check out the solved question of other Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
