Ownclasses

Y Ltd. purchased furniture costing Rs. 1,35,000 from A. B. Ltd. The payment was made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass necessary Journal entries in the books of Y Ltd. 

Answer

Journal Entries

Particulars

LF

Debit

Credit

 

Furniture a/c                                 Dr

              To A.B Ltd 

(Being furniture purchased from A.B Ltd)

 

 

 

1,35,000

 

 

 

 
 1,35,000

   15,000

 

 

 1,35,000

 

 

 

 

 

 
 150000

 

A.B Ltd a/c                                   Dr

Discount on issue of shares a/c      Dr 

              To Equity share capital a/c 

(Being issue of15000 fully paid equity shares of Rs 10 each at a discount Rs 1 per share.)

 

Working note: Number of equity shares to be issued=135000/9 (Price of a share after 1 Rs discount) = 15000 shares.