Page No 8.115:
Question 31:
Z Ltd . purchased
furniture costing ` 2,20,000 from C.D Ltd.
The payment was to be made by issue of 9% Preference Shares of ` 100
each ata premium of ` 10 per
share . Pass necessary Journal entries in the books of Z Ltd.
Answer:
|
Books of Z Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
Assets
A/c |
Dr. |
|
2,20,000 |
|
|
|
To C.D Ltd. |
|
|
2,20,000 |
|
|
|
(Assets
purchased from C.D Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
C.D
Ltd. |
Dr. |
|
2,20,000 |
|
|
|
To 9% Preference Share
Capital |
|
|
2,00,000 |
|
|
|
To Securities Premium
A/c |
|
|
20,000 |
|
|
|
(2,000
9% Preference Shares of ` 100 each issued at 10%
premium to C.D Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Number of shares issued=2,20,000/100+10=2,000
shares
Page No 8.115:
Question 32:
Goodluck
Ltd purchased machinery costing ` 10,00,000 from Fair Deals Ltd. The company paid the
price by issue of Equity Shares of ` 10 each at a premium of
25%.
Pass necessary Journal entries for the above transactions in the books of
Goodluck Ltd.
Answer:
|
Books Goodluck Ltd. Journal |
||||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
||
|
|
|
|
|
|
||
|
|
Machinery
A/c |
Dr. |
|
10,00,000 |
|
|
|
|
To Fail Deals Ltd. |
|
|
10,00,000 |
||
|
|
(Machinery
purchased from Fair Deals Ltd.) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Fair
Deals Ltd. |
Dr. |
|
10,00,000 |
|
|
|
|
To Equity Share Capital
A/c |
|
|
8,00,000 |
||
|
|
To Securities Premium
A/c |
|
|
2,00,000 |
||
|
|
(80,000
equity shares of ` 10
each issued at 25% premium) |
|
|
|
||
|
|
|
|
|
|
||
Working Note:
Number
of shares issued=10,00,000/10+2.5=80,000 shares
Page No 8.115:
Question 33:
Jain
Ltd purchased machinery costing ` 10,00,000
from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50%
, the company issued Equity Shares of ` 100 each
at a premium of 25% . Pass necessary Journal entries in
the books of Jain Ltd . for the above transaction.
Answer:
|
Books of Jain Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
Machinery
A/c |
Dr. |
|
10,00,000 |
|
|
|
To Ayer Ltd. |
|
|
10,00,000 |
|
|
|
(Machinery
purchased from Ayer Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ayer
Ltd. |
Dr. |
|
5,00,000 |
|
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
|
(Payment
made to Ayer Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ayer
Ltd. |
Dr. |
|
5,00,000 |
|
|
|
To Equity Share Capital
A/c |
|
|
4,00,000 |
|
|
|
To Securities Premium
A/c |
|
|
1,00,000 |
|
|
|
(4,000
equity shares of ` 100
each issued at 25% premium) |
|
|
|
|
|
|
|
|
|
|
|
Working Note-
Amount paid through bank draft =10,00,000×50/100=5,00,000
Number
of shares issued = 5,00,000/100+25 =4,000 shares
Page No 8.115:
Question 34:
Sona Ltd.
purchased machinery costing ` 17,00,000
from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance
amount issued Equity Shares of ` 100 each
at a premium of 25% . Pass necessary Journal entries for the above transactions
in the books of Sona Ltd .Show your working notes clearly.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
17,00,000 |
|
|
|
To Mona Ltd. |
|
|
|
17,00,000 |
|
|
(Machinery purchased on credit from
Sona Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mona Ltd. |
Dr. |
|
3,40,000 |
|
|
|
To Bank A/c |
|
|
|
3,40,000 |
|
|
(20% amount paid through cheque) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mona Ltd. (17,00,000 – 3,40,000) |
Dr. |
|
13,60,000 |
|
|
|
To Equity Share Capital* |
|
|
|
10,88,000 |
|
|
To Securities Premium A/c* |
|
|
|
2,72,000 |
|
|
(Issued 10,880 shares of ` 100 each to Mona Ltd. at 25% Premium) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes: *
Number of shares =
purchase consideration/face value of share+premium=13,60,000/100+25=10,880
shares
Amount of shares capital
issued=10,880×100=10,88,000
Amount of securities premium on shares
issued=10,88,000×25/100=2,72,000
Page No 8.115:
Question 35:
Bharat
Lamp Ltd. issued 30,000 fully paid-up shares of ` 100 each for purchase of the following assets and
liabilities from Sharma & Co:
|
Plant |
` 7,00,000 |
Stock-in-Trade |
` 9,00,000 |
|
Land and Building |
` 12,00,000 |
Sundry Creditors |
` 2,00,000 |
You are required to pass necessary Journal entries.
Answer:
|
Books of Bharat Lamp Limited |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
|
|
Goodwill
A/c |
Dr. |
|
4,00,000 |
|
|
|
Plant
A/c |
Dr. |
|
7,00,000 |
|
|
|
Stock-in-Trade
A/c |
Dr. |
|
9,00,000 |
|
|
|
Land
and Building |
Dr. |
|
12,00,000 |
|
|
|
To Sundry Creditors A/c |
|
|
2,00,000 |
|
|
|
To Sharma & Co |
|
|
30,00,000 |
|
|
|
(Asset
purchased and liabilities accepted from Sharma & Co) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sharma
& Co |
Dr. |
|
30,00,000 |
|
|
|
To Share Capital A/c |
|
|
30,00,000 |
|
|
|
(30,000
shares of ` 100 each issued to Sharma
& Co.) |
|
|
|
|
|
|
|
|
|
|
|