Question

Jain Ltd. purchased a machine of 6,00,000 from Kamal. 50% of the payment was made by cheque and for the
remaining the company issued equity shares of 10 each at a premium of 20%.
Give necessary Journal entries in the books of Jain Ltd. for the above transactions. (Raj. Board, 2014)
[Ans. Payment by Cheque 3,00,000, Issue of Shares 2,50,000, Securities Premium 50,000]
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Answer 1

Answer:

please check the attachment

Answer 2

Answer:

machineA/C _Dr 600000

To kamal A/C 600000

kamal A/C _ Dr 300000

To bank A/C 300000

kamal A/C _ Dr 300000

To equity share capital A/C 250000

To securities premium A/C 50000