Question

bought debentures of Tata Motors for rupees 20000 and paid rupees 1% payment is made by cheque. write journal entry for this question

Answer 1

Answer:

Explanation:

Well good question, always remember one thing ,In accounting while writing entries they are 2 prospectives

Buyer prospective (books of buyer)

Seller prospective (books of sellers)

Buyer prospective

Shares(company) a/c. dr

To BANK a/c

Brokerage a/c. dr

To BANK a/c

(Here you can also debit p&l a/c)

Seller prospective

remember one thing here 2 parties involved one is broker and one is company,

Company

Bank a/c Dr

To SHARE CAPITAL a/c

Broker

Bank a/c Dr

To sales a/c