Question 25 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 25 Chapter 8 of +2-Part-1 - Solution-min

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 25 Chapter 8 of +2-Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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