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Pass journal entries for the following: Y Ltd. decided to issue 2,000 shares of ₹100 each to the Unit Trust of India as Underwriting Commission. - Accounts

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Question

Pass journal entries for the following:

Y Ltd. decided to issue 2,000 shares of ₹100 each to the Unit Trust of India as Underwriting Commission.

Journal Entry
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Solution

Journal entries
In the books of Y Ltd.
Date Particulars L.F. Debit (₹) Credit (₹)
(ii) Underwriting Commission A/c     ...Dr.   2,00,000  
          To Unit Trust of India's A/c     2,00,000
(Underwriting Commission incurred)      
Unit Trust of India's A/c     ...Dr.   2,00,000  
          To Equity Share Capital A/c     2,00,000
(2000 shares issued to underwriter)      
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Chapter 6: Company Accounts - Issue of Shares - PRACTICAL QUESTIONS [Page 6.154]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
PRACTICAL QUESTIONS | Q 9. (ii) | Page 6.154
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