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Question
X.Ltd. purchased a Machinery from Y for an agreed purchase consideration of Rs 4,40,000 to be satisfied by the issue of 12% debentures of Rs 100 each at a premium of Rs 10 per debenture. Journalise the transactions.
Solution
Books of X. Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
|
Machinery A/c |
Dr. |
|
4,40,000 |
|
||
|
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To Y |
|
|
4,40,000 |
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|
|
(Machinery purchased from Y) |
|
|
|
|||
|
|
Y |
Dr. |
|
4,40,000 |
|
||
|
|
To 12% Debentures A/c |
|
|
4,00,000 |
|||
|
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To Securities Premium A/c |
|
|
40,000 |
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|
|
(Allotted 4,000 debentures of Rs 100 each at a premium of Rs 10 per debenture in consideration of Machinery purchased) |
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|
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