Question:
Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of rupee10 each at a premium of 10% and a bank draft of rupee50,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.
Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of rupee10 each at a premium of 10% and a bank draft of rupee50,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.
Show Hint
Ensure to account for both the face value of shares and the premium separately in the journal entry when issuing shares.
Updated On: Jan 13, 2026
Show Solution
Verified By Collegedunia
Solution and Explanation
The journal entry for purchase consideration: 
Was this answer helpful?
0
1
Top CBSE CLASS XII Accountancy Questions
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet:
- On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures will be:
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- On the dissolution of a partnership firm, there were debtors of ₹34,000. Debtors of ₹1,000 became bad, and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?
- If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to:
View More Questions
Top CBSE CLASS XII Accounting for Share Capital Questions
- X Ltd. issued 10,000 equity shares of Rs 10 each at a premium of Rs 2 per share. Amount payable: Rs 4 on application, Rs 5 on allotment (including premium), and Rs 3 on first & final call. All shares were subscribed and money received. Pass journal entries.
- The amount of share capital to be shown under the heading ‘Shareholder’s Funds’ will be:
- Total number of shares into which the authorised share capital of the company is divided is:
- Total amount of ‘Subscribed and fully paid-up’ capital will be:
- ‘Subscribed but not fully paid-up’ capital will be:
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions