Question

Journalize the following transaction: Bought 100 shares in Bharat Limited @ Rs. 15 per share, brokerage paid rs. 30.

Answer 1

Answer:

The journal entry is as follows:

Explanation:

For 100 Shares bought in Bharat Limited at Rs 15 per share

Shares in Bharat Limited  A/c..................Dr    Rs 1,500

         To Bank A/c..............................................Cr   Rs 1,500

Working Note:

Aggregate Amount = Number of shares × Rate per share

                               = 100 shares × 15 per share

                               = Rs 1,500

For Brokerage paid of Rs 30

Brokerage A/c.....................Dr    30

          To Bank A/c...................Cr   30

Answer 2

Answer:

Shares in Bharat Ltd a/c    dr    1500

     To bank A/c                                   1500

Brokerage a/c                      dr     30

  To bank a/c                                         30

Explanation: