Ownclasses

Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd. 

Answer

Date

Particulars

LF

Debit (Rs)

Credit (Rs)

 

Building a/c                                    Dr

                        To Gupta Ltd a/c

                        To bank a/c

(being building purchased from Gupta Ltd, Rs 1,00,000 paid by cheque and balance by equity share)

 

10,00,000

 

 

 

 

  9,00,000

1,00,000

 

9,00,000

1,00,000

 

 

 

 

10,00,000

Gupta Ltd a/c                                   Dr

Discount on issue of share a/c            Dr

                          To Equity share capital a/c

(Being 100000 shares of Rs 10 each issued at 10% discount)