Question

Bansal Heavy machine Ltd purchased machine worth Rs 3,20,000 from Handa Trader. Payment was made as Rs 50,000 cash and remaining amount by issue of equity share of the face value of Rs 100 each fully paid at an issue price of Rs 90 each. Give journal entries to record the above transaction.

Answer 1

Answer:

Machinery A/C Dr 3,20,000

Disc on issue of share A/C 30,000

To Bank A/C 50,000

To Equity Share Capital A/C 3,00,000

Explanation: