Question 32 Chapter 8 of +2-A
Table of Contents
32. Jain ltd purchased machinery costing Rs 10,00,000 from ayer ltd. 50% of the payment was made by cheque and for the remaining 50%, the company issued Equity shares of Rs 100 each at a premium of 25%.
Pass necessary journal entries for the above transaction in the books of Jain Ltd for the above transactions.
The solution of Question 32 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Plant and Machinery A/c | Dr. | 10,00,000 | |||
| To Ayer ltd. A/c | 10,00,000 | ||||
| (Being asset purchased from Ayer limited ) | |||||
| Z ltd. A/c | Dr. | 10,00,000 | |||
| To Equity share capital A/c | 4,00,000 | ||||
| To Security premium reserve A/c | 1,00,000 | ||||
| To Bank A/c | 5,00,000 | ||||
| (Being Equity shares issued at par with security premium reserve ) | |||||
(working note )
Calculation of shares issued
(Issued at a premium of 20% )=
| Rs 5,00,000 |
| Rs 125 |
= 4,000 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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