Question

Disha Ltd. purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows:
By issuing 10,000 equity shares of Rs.10 each at a premium of 10%.
By issuing 200, 9% debentures of Rs.100 each at a discount of 10%.
Balance by accepting a bill of exchange of Rs.50,000 payable after one month.
Pass necessary journal entries in the books of Disha Ltd for the purchase of machinery and making payment to Nisha Ltd.​

Answer 1

Answer:

cost of machinery = 1,10,000 + 18,000 + 50,000 = 1,78,000

machinery.. .... dr. 1,78,000

to nisha Ltd... 1,78,000

nisha Ltd. 1,78,000

discount on deb 2000

to equity share capital 1,00,000

to security premium reserve 10,000

to 9% debenture 20,000

to bills payable 50,000