Question

Disha Ltd. purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows:
(i) By issuing 10,000 equity shares of Rs. 10 each at a premium of 10%.
(ii) Balance by accepting a bill of exchange of Rs. 50,000 payable after one month.
Pass necessary journal entries in the book of Disha Ltd. for the purchase of machinery and making payment to Nisha Ltd. 3

Answer 1

Answer:

Machinery account. dr. 160000

To Nisha ltd. 160000

Nisha ltd. dr. 160000

To equity share capital 100000

To security premium reserve. 10000

To bills payable. 50000