Question

'Amrit Dhara Ltd.' issued 800 Equity Shares of ₹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of ₹ 1,00,000.
Pass entries in company's Journal.

Answer 1

Books of Amrit Dhara Limited Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	Plant & Machinery A/c	Dr.		1,00,000
	To Vendor A/c				1,00,000
	(Machinery purchased)
	Vendor A/c	Dr.		1,00,000
	To Equity Share Capital A/c (800 $\times$ 100)				80,000
	To Securities Premium A/c (800 $\times$ 25)				20,000
	(Shares issued to vendor at a premium of ₹ 25 per share)