what was the answer
Answers
journal entries
1)plant and machinery A/c Dr 8,00,000
To mogan & co ltd A/c 7,20,000
To cash A/c A/c 80,000
(being purchased plant and machinery and paid in consideration of equity shares )
same entry for all 3 cases
when shares issued at par
2 Mogan & co ltd A/c Dr 720000
To equity share capital A/c 7,20,000
(being 72000 equity shares of 10 rs each issued at par )
when shares issues at premium
2) Mogan & co ltd A/c Dr 720000
To securities premium A/c 120000
To Equity share capital A/c 600000
(being 60000 equity shares of 10 rs each issued at premium at 20% )
working note :
calculation for shares issued at premium
no of shares issued = amount payable / issue price
=720000/12
=60000
securities premium = 600000*12
=120,000
equity share = 60000*10
=6,00,000
when shares issued at discount
2) Mogan & co ltd A/c Dr 720000
discount on issue of share A/c Dr 180000
To Equity share capital A/c 540000
(being 90000 equity shares of 10 rs each issued at discount at 20% )
working note :
calculation for shares issued at discount
no of shares issued = amount payable / issue price
=720000/8
=90000
securities premium = 90000*2
=180,000
equity share = 90000*6
=5,40,000
Hope its useful ..!!