Question

1 Illustration 14 (Issue of Saaves to Vendors for Purchases of Assets)
S.R.S.P. Ltd. purchased furniture from S.I.S. Ltd. for 90,000 payable in fully
paid shares of 10 each. What entries will be made in the Books of S.R.S.P. Ltd
shares are issued () at Par (ii) at a Premium of 25% and (iii) at a discount of 10%.
Solution :​

Answer 1

Answer:

first entry for all first parts

Furniture a/c Dr. 90000

To S.I.S LTD 90000

(i) S.I.S Ltd. Dr. 90000

To Share Capital a/c 90000

( 90000/10 = 9000 shares issued )

(ii) S.I.S Ltd Dr. 90000

To Share Capital a/c 72000

To security premium reserve a/c 18000

( 90000/12.5 = 7200 shares issued )

(iii) According to me it is not possible bcz SEBI do not allow companies to issue shares at discount .... my point of view may be wrong ...

hope this would help you