Question

(Q25) The X Ltd took over a machine of Rs3 50 000 from Z Ltd. Rs 50000 were paid in cash and remaining amount were paid in consideration of equity shares of Rs 10 each issued at 20% Premium. Give journal entries in the books of the X Ltd​

Answer 1

Answer:

Machinery A/C Dr 3,50,000

To Cash A/C 50,000

To Equity Share Capital A/C 2,50,000

To Securities Premium A/C 50,000