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'Panipat Blankets Limited' Are the Manufacturers and Exporters of Blankets. Pass Necessary Journal Entries for the Above Transactions in the Books of the Company. Also, Identify Anyone Value Which the Company Wants to Communicate to the Society. - CBSE (Arts) Class 12 - Accountancy

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Question

'Panipat Blankets Limited' are the manufacturers and exporters of blankets. The company decided to distribute 1,000 blankets free of cost to five villages of Kashmir which had been damaged by the floods. It also decided to employ 100 young persons from these villages in their newly established factory at Ludhiana in Punjab To meet the requirements of funds for its new factory, the company issued 1,00,000 equity shares of  Rs 10 each and 2,000, 9% debentures of Rs 100 each to the vendors of machinery purchased for Rs 12,00,000.

Pass necessary journal entries for the above transactions in the books of the company. Also, identify anyone value which the company wants to communicate to the society.

Solution

Journal
In the books of Panipat Blankets Ltd
Date Particulars L.F.

Dr.

Rs

Cr.

Rs

 

Machinery A/c   Dr.

    To Vendor

(Being purchased machinery)

 

12,00,000

 

 

 

12,00,000

 

 

Vendor A/c    Dr.

    To Equity Share Capital A/c

    To 9% Debentures A/c

(Being issued 1,00,000 equity shares and 2,000
debentures to the vendor)

 

12,00,000

 

 

 

 

 

10,00,000

2,00,000

 

 

Values involved in the above scenario

(1) Improvement in employment opportunities

(2) Social welfare

  Is there an error in this question or solution?

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Solution 'Panipat Blankets Limited' Are the Manufacturers and Exporters of Blankets. Pass Necessary Journal Entries for the Above Transactions in the Books of the Company. Also, Identify Anyone Value Which the Company Wants to Communicate to the Society. Concept: Concept of Financial Statements.
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