Question

53. On 1.1.20 X Ltd. purchased fixed assets worth 2,50,000 for a consideration of * 2,30,000 payable by the
issue of 20,000 fully paid equity shares of 10 each at a premium of 15%. After 6 months X Ltd. sold the
above fixed assets for * 3,20,000.
Show the Journal entries and prepare the Reserve Account, if any.
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Answer 1

1.1.20 X Ltd. purchased fixed assets worth 2,50,000 for a consideration of * 2,30,000 payable by the

issue of 20,000 fully paid equity shares of 10 each at a premium of 15%. After 6 months X Ltd. sold the

above fixed assets for * 3,20,000.