Question

A company purchased assets worth ₹ 72,000. It issued fully paid-up
equity shares of ₹ 100 each at 10% discount. Give Journal Entries,​

Answer 1

JOURNAL ENTRIES.

Explanation:

As it is not mentioned in the question that shares have been issued in payment of the asset purchased. So let us assume they have been:

(i) Assets A/c                                                 Dr.  72,000

   Discount on Issue of Shares A/c             Dr.   8,000

                 To Equity Share Capital A/c                             80,000

If it wasn't in the lieu of payment then the cash will be credited to assets and cash will be debited in case of the issue of equity shares.