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Question -

Bansal Heavy machine Ltd purchased machine worth Rs 3,20,000 from Handa Trader. Payment was made as Rs 50,000 cash and remaining amount by issue of equity share of the face value of Rs 100 each fully paid at an issue price of Rs 90 each.
Give journal entries to record the above transaction.



Answer -

Book of Bansal Heavy Machine Ltd

 

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Machinery A/c

Dr.

 

3,20,000

 

 

 

To Cash A/c

 

 

50,000

 

 

To Handa Traders

 

 

2,70,000

 

(Machine purchased from Handa Traders paid Rs 50,000 in

cash immediately)

 

 

 

 

 

 

 

 

 

Handa Trader

Dr.

 

2,79,000

 

 

Discount on Issue of Shares A/c

Dr.

 

30,000

 

 

 

To Share Capital A/c

 

 

3,00,000

 

(3,000 share issued at Rs 90 face value of Rs 100 each to

Handa Traders in consideration of amount due to him for

machinery purchased)

 

 

 

 

 

 

 

 

 
Working Notes:-
1. Number of share issued

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