Question

Zex Ltd. purchases a plant and machinery of Rs. 10,00,000 from Suraj Enterprises. It pays Rs. 2,00,000 through cheque and issues fully paid up equity shares of Rs. 20 each for the balance amount. You are required to pass the necessary journal entries in the books of zex Ltd.

Answer 1

Books of Zex Ltd.

JOURNAL

$\begin{array}{ccccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Dr (Rs)}& \text{Cr. (Rs)}& \\ & \text{Plant and Machinery A/c Dr.}& & & 10,00,000& & \\ & \text{To Suraj Ltd A/c}& & & & 10,00,000& \\ & \text{Suraj Ltd. A/c Dr.}& & & 10,00,000& & \\ & \text{To Share Capital A/c}& & & & 8,00,000& \\ & \text{To Bank A/c}& & & & 2,00,000& \end{array}$