Question

(II) Issue Ul Shares for Consideration other than Cash
Y Ltd. purchased assets at * 3,80,000 from Ram Traders. It issued equity shares of
each fully paid in satisfaction of their claim. What entries will be made in case such issue is
(a) at par, (b) at a premium of 25% ?
Ans. Securities Premium * 76.0001​

Answer 1

Explanation:

let price of equity share =₹100

$number \: of \: shares \: = \frac{380000}{125} \\ = 3040 \: shares$

security premium= 3040×25 = ₹76000

Answer 2

x ltd purchased assets at 380000 from ram traders it issud