Raj and Co purchased a machinery from Rupaiya 196000 and issues equity share of rupees 100 at rupee 98 each fully paid up in full payment. calculate number equity shares issued and pass necessary Journal entries in the book of Raj and co.
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Answer:
(i) Machinery a/c. Dr ₹1,96,000
To Rupaiya Ltd a/c. ₹1,96,000
(Being machinery purchased)
(ii) Rupaiya Lrd a/c. Dr ₹1,96,000
Discount on issue of shares a/c Dr. ₹4,000
To Equity Share Capital a/c ₹2,00,000
(Being purchase consideration satisfied by issuing 2,000 equity shares @100 each at a discount of 2% as per boards resolution no... Dated.. )
Explanation:
No of shares = ₹1,96,000/₹98 = 2,000 shares.
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