Question

2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired. Pass Journal entry.

Answer 1

Attached is the book of accounts

Answer 2

Given:

Equity shares = 2000

Share value = 10

Asset value = 25,000

To Find:

The journal entries

Solution:

The correct journal entries are -

1. Assets A/c Dr

To ABC Ltd. A/c

( Being assets bought from ABC Ltd)

2. X Ltd. A/c 25,000

To Share Capital A/c 20,000

To Securities Premium A/c 5,000

( Being 2000 shares of 10 each issued to ABC Ltd.)