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Question
Rajan Ltd . purchased assets from Geeta & Co . for ₹ 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of ₹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.
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Solution
Books of Rajan Limited
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Assets A/c |
Dr. |
|
5,00,000 |
|
|
|
To Geeta & Co. |
|
|
5,00,000 |
|
|
|
(Assets purchased from Geeta & Co.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Geeta & Co. |
Dr. |
|
1,00,000 |
|
|
|
To Bank A/c |
|
|
1,00,000 |
|
|
|
(Payment made to Geeta & Co.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Geeta & Co. |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
3,20,000 |
|
|
|
To Securities Premium A/c |
|
|
80,000 |
|
|
|
(32,000 equity shares of Rs 10 issued at 25% premium) |
|
|
|
|
Working Note-
Number of shares issued =`400000/(10 + 2.5) = 32000 "shares"`
