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Question
Sundram Ltd. Purchased Furniture for Rs 3,00,000 from Ravindram Ltd. Rs 1,00,000 were paid by drawing a Promissory Note in favour of Ravindram Ltd. The balance was paid by issue of
Equity Shares of Rs 10 each at a premium of 25%.
Pass necessary Journal entries in the book of Sundram Ltd.
Solution
|
Books of Sundram Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Furniture A/c To Ravindram A/c (Furniture purchased )
Ravindram A/c To Bills payable A/c (Amount paid by drawing a Promissory Note)
Ravindram Ltd. To Equity share capital A/c To Securities Premium (Issue of Equity share of Rs 10 each at a premium of 25%) |
Dr.
Dr.
Dr.
|
|
3,00,000
1,00,000
2,00,000 |
3,00,000
1,00,000
1,60,000 40,000 |
Notes
Calculation of number of Equity Shares to be issued
`"No of Equity Shares"="Purchase Consideration"/"Issue Price"`
Issue price = Face Value + Premium
= 10 + 2.5
= Rs 12.5
∴ No.of Equity Shares=`(2,00,000)/12.5xx16,000`Shares
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