Accountancy, asked by abhishek364930, 9 months ago

Bharat Limited purchased plant and machinery for 20,00,000 rupees from Delhi

machines limited by paying 5,00,000 Rupees by cheque and balance by issue of 11%

debentures of rupees 100 each at a premium of 20%. Pass necessary entry in the books

of Bharat Ltd. for the above transactions. Pass necessary entries in the books of Bharat

Limited for the above transatransaction​

Answers

Answered by Anonymous
0

A journal entry is a business transaction record in the firm's accounting books.

The correct journal entries are -

  • Plant & machinery A/c  Dr  20,00,000

To Delhi Machine Ltd. A/c  20,00,000

( Being the plant and machinery purchased)

  • Delhi Machine Ltd A/c  Dr  5,00,000

To Bank A/c  5,00,000

( Being 5,00,000 given by cheque)

  • Delhi Machine Ltd A/c  Dr  15,00,000

To 11% Debenture A/c           12,50,000    

To Securities premium A/c    2,50,000

( Being remaining payment made by issue of debentures)

Calculation -

Number of Debenture = Purchase Price/ Issue price

= 15,00,000 / [100 + 20]

= 15,00,000/120

= 12,500

Number of Debenture = 12,500

Debentures @ 11% = = 12,500 × 100 = 12,50,000

Securities premium @ 20% = 12,500 × 20 = 2,50,000

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