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Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company?
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Akshara ltd .was incorporated with share capital of ,2 crore in shares...
**Journal Entries**
1. Initial Incorporation:
- Land and Building Account (Asset) - Debit: 50,00,000
- Share Capital Account (Equity) - Credit: 50,00,000
2. Issuance of Shares in Exchange for Land and Building:
- Land and Building Account (Asset) - Debit: 50,00,000
- Share Capital Account (Equity) - Credit: 50,00,000
3. Issuance of Shares for Cash:
- Cash/Bank Account (Asset) - Debit: Amount received for shares issued
- Share Capital Account (Equity) - Credit: Amount received for shares issued
4. Subscription of Public Shares:
- Share Capital Account (Equity) - Debit: Amount received for shares subscribed by the public
- Share Application Account (Liability) - Credit: Amount received for shares subscribed by the public
**Balance Sheet**
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of three main components: assets, liabilities, and equity. Here is the balance sheet for Akshara Ltd.:
**Akshara Ltd.**
Balance Sheet as of [Date]
**Assets**
- Land and Building: [Value]
- Cash/Bank: [Value]
- Other Assets: [Value]
**Liabilities**
- Share Application: [Value]
- Other Liabilities: [Value]
**Equity**
- Share Capital: [Value]
**Explanation**
1. Initial Incorporation:
- Akshara Ltd. is incorporated with a share capital of 2 crore divided into shares of 100 each. This means the company has 2,00,00,000 shares in total.
2. Issuance of Shares in Exchange for Land and Building:
- The company purchases land and building for 50,00,000. Instead of paying cash, the company issues fully paid shares of the company to the seller. This transaction increases the value of the land and building asset by 50,00,000 and increases the share capital by the same amount.
3. Issuance of Shares for Cash:
- The company issues half of the remaining shares for cash. This transaction increases the company's cash/bank account and share capital account by the amount received for the shares issued.
4. Subscription of Public Shares:
- The public subscribes to the remaining shares by paying cash. This transaction increases the share capital account and creates a liability in the form of a share application account, representing the amount received for the shares subscribed by the public.
The balance sheet reflects the financial position of Akshara Ltd. at a specific point in time. It shows the company's assets, liabilities, and equity. The assets include land and building, cash/bank, and other assets owned by the company. The liabilities include the share application account and other liabilities owed by the company. The equity section represents the share capital contributed by the shareholders.
1. Initial Incorporation:
- Land and Building Account (Asset) - Debit: 50,00,000
- Share Capital Account (Equity) - Credit: 50,00,000
2. Issuance of Shares in Exchange for Land and Building:
- Land and Building Account (Asset) - Debit: 50,00,000
- Share Capital Account (Equity) - Credit: 50,00,000
3. Issuance of Shares for Cash:
- Cash/Bank Account (Asset) - Debit: Amount received for shares issued
- Share Capital Account (Equity) - Credit: Amount received for shares issued
4. Subscription of Public Shares:
- Share Capital Account (Equity) - Debit: Amount received for shares subscribed by the public
- Share Application Account (Liability) - Credit: Amount received for shares subscribed by the public
**Balance Sheet**
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of three main components: assets, liabilities, and equity. Here is the balance sheet for Akshara Ltd.:
**Akshara Ltd.**
Balance Sheet as of [Date]
**Assets**
- Land and Building: [Value]
- Cash/Bank: [Value]
- Other Assets: [Value]
**Liabilities**
- Share Application: [Value]
- Other Liabilities: [Value]
**Equity**
- Share Capital: [Value]
**Explanation**
1. Initial Incorporation:
- Akshara Ltd. is incorporated with a share capital of 2 crore divided into shares of 100 each. This means the company has 2,00,00,000 shares in total.
2. Issuance of Shares in Exchange for Land and Building:
- The company purchases land and building for 50,00,000. Instead of paying cash, the company issues fully paid shares of the company to the seller. This transaction increases the value of the land and building asset by 50,00,000 and increases the share capital by the same amount.
3. Issuance of Shares for Cash:
- The company issues half of the remaining shares for cash. This transaction increases the company's cash/bank account and share capital account by the amount received for the shares issued.
4. Subscription of Public Shares:
- The public subscribes to the remaining shares by paying cash. This transaction increases the share capital account and creates a liability in the form of a share application account, representing the amount received for the shares subscribed by the public.
The balance sheet reflects the financial position of Akshara Ltd. at a specific point in time. It shows the company's assets, liabilities, and equity. The assets include land and building, cash/bank, and other assets owned by the company. The liabilities include the share application account and other liabilities owed by the company. The equity section represents the share capital contributed by the shareholders.
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Akshara ltd .was incorporated with share capital of ,2 crore in shares...
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Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company?
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Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company?.
Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Akshara ltd .was incorporated with share capital of ,2 crore in shares of 100 each .the company purchase land and building for 50,00,000 payable in fully paid share of company .half of remaining share were issued for cash and were taken up by the public and fully paid for.pass journal entries and also show balance sheet of company?.
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