Question

Rajan Ltd . purchased assets from Geeta & Co . for ₹ 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of ₹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.

Answer 1

Books of Rajan Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Assets A/c	Dr.		5,00,000
	To Geeta & Co.				5,00,000
	(Assets purchased from Geeta & Co.)
	Geeta & Co.	Dr.		1,00,000
	To Bank A/c				1,00,000
	(Payment made to Geeta & Co.)
	Geeta & Co.	Dr.		4,00,000
	To Equity Share Capital A/c				3,20,000
	To Securities Premium A/c				80,000
	(32,000 equity shares of Rs 10 issued at 25% premium)

Working Note-