Question 31 Chapter 8 of +2-A
Table of Contents
31. Goodluck ltd. Purchased machinery costing Rs 10,00,000 from fair deals ltd. The company paid the price by the issue of Equity shares of Rs 10 each at a premium of 25%.
Pass necessary journal entries for the above transaction in the books of Goodluck Ltd.
The solution of Question 31 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Plant and Machinery A/c | Dr. | 10,00,000 | |||
| To Fair deals ltd. A/c | 10,00,000 | ||||
| (Being asset purchased from fairs deal limited ) | |||||
| To Z ltd. A/c | Dr. | 10,00,000 | |||
| To Equity share capital A/c | 8,00,000 | ||||
| To Security premium reserve A/c | 2,00,000 | ||||
| (Being Equity shares issued at par with security premium reserve ) | |||||
(working note )
Calculation of shares issued
(Issued at premium of 20% )=
| Rs 10,00,000 |
| Rs 12.5 |
= 80,000 shares
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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