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Question
Pass journal entries for the following:
X Ltd. purchased Land and Building from R. Sundram for ₹5,00,000 payable in fully paid shares of ₹100 each at a premium of 25%.
Journal Entry
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Solution
| Journal entries in the books of X Ltd. |
||||
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| (i) | Land and Buildings A/c ...Dr. | 5,00,000 | ||
| To R Sundram | 5,00,000 | |||
| (Purchased land and building) | ||||
| R Sundram ...Dr. | 5,00,000 | |||
| To Equity Share Capital A/c | 4,00,000 | |||
| To Securities Premium A/c | 1,00,000 | |||
| (4000 shares of Rs 125 per share) | ||||
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