Question

Q2. Rudra Ltd. purchases a building for ₹650000from Sun Enterprises. It pays ₹300000 in cash andissues fully paid equity shares of '₹10' each at par forthe balance amount. It also issues 50000 fully paid-up shares to the promoters. Pass necessary journal entries.​

Answer 1

Explanation:

Date Particulars Amount (Dr.) Amount (Cr.)

1. Building A/c Dr. 650000

To Share Capital A/c Cr. 350000

To Bank A/c Cr. 300000

(Being money paid and shares issued to the vendor for payment of assets purchased)

2. Goodwill A/c Dr. 500000

To Share Capital A/c Cr. 5