Question

Give journal entries for the following
transactions
(whether asset, liability , Capital,
expenses or revenue) and the
rule applicable.

1) Ajit Started buisness by investing
cash rs 50,00,000 He bought
RS 4,00,000 and
furniture of Rs. 5,00,000
goods old​

Answer 1

On 1.1.20 X Ltd. purchased fixed assets worth 2,50,000 for a consideration of * 2,30,000 payable by the

issue of 20,000 fully paid equity shares of 10 each at a premium of 15%. After 6 months X Ltd. sold the

above fixed assets for * 3,20,000.