Question

12. Pass necessary journal entries for the following transactions in the books of Gopal Ltd

() Purchased fumiture tor Rs 2,50,000 trom Mis Furniture Mart. The payment to Ms Furniture Mart was made by issuing equity shares of Rs 10 each at a premium of 25%.

(i)Purchased a running business from Aman Ltd fora sum of Rs 15.00.000. The pavment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft.

The assets and liabilities consisted of the following plant Rs 3.50,000: stock Rs 4,50,000 land and building Rs 6,00,000; sundry creditors Rs 1,00,000.​

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF GOPAL LTD.

Explanation:

Shares have been allotted for the payment purpose in both entries in the books of Gopal Ltd.

NOTE:

1) In entry (i) premium of 25% of Rs.10 is 2.5, thus making the per-share value (12.5).

2) The difference in the debit and credit will be adjusted by Goodwill A/c.

REFER TO THE IMAGE FOR THE ANSWER.

Answer 2

Explanation:

ACCOUNTING FOR SHARE CAPITAL. .