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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise
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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of...
Journal Entry for Purchase of Assets from Rohan and Co.
The journal entry for the purchase of assets from Rohan and Co. by Rohit LTD. can be recorded as follows:
Step 1: Recording the Purchase of Assets
Step 2: Recording Payment through Bank Draft
Step 3: Recording Issue of Equity Shares
Explanation:
The first step involves recording the purchase of assets from Rohan and Co. by debiting the assets account and crediting Rohan and Co. account with the same amount of Rs. 350,000.
The second step involves recording the payment made through bank draft by debiting Rohan and Co. account and crediting the bank account for the amount of Rs. 75,000.
The third step involves recording the issue of equity shares to pay the balance due to Rohan and Co. by debiting the Rohan and Co. account and crediting the equity share capital account and securities premium account. The equity shares are issued at a premium of 10%, which means the face value of each share is Rs. 10, and the premium is Rs. 1 per share. Therefore, the total amount received by issuing equity shares is Rs. 275,000, out of which Rs. 245,000 is credited to the equity share capital account, and Rs. 30,000 is credited to the securities premium account.
The journal entry for the purchase of assets from Rohan and Co. by Rohit LTD. can be recorded as follows:
Step 1: Recording the Purchase of Assets
- Debit: Assets Account (e.g. Machinery, Land, Building, etc.) - Rs. 350,000
- Credit: Rohan and Co. Account - Rs. 350,000
Step 2: Recording Payment through Bank Draft
- Debit: Rohan and Co. Account - Rs. 75,000
- Credit: Bank Account - Rs. 75,000
Step 3: Recording Issue of Equity Shares
- Debit: Rohan and Co. Account - Rs. 275,000
- Credit: Equity Share Capital Account - Rs. 245,000
- Credit: Securities Premium Account - Rs. 30,000
Explanation:
The first step involves recording the purchase of assets from Rohan and Co. by debiting the assets account and crediting Rohan and Co. account with the same amount of Rs. 350,000.
The second step involves recording the payment made through bank draft by debiting Rohan and Co. account and crediting the bank account for the amount of Rs. 75,000.
The third step involves recording the issue of equity shares to pay the balance due to Rohan and Co. by debiting the Rohan and Co. account and crediting the equity share capital account and securities premium account. The equity shares are issued at a premium of 10%, which means the face value of each share is Rs. 10, and the premium is Rs. 1 per share. Therefore, the total amount received by issuing equity shares is Rs. 275,000, out of which Rs. 245,000 is credited to the equity share capital account, and Rs. 30,000 is credited to the securities premium account.
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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of...
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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise
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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise for Class 12 2025 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise covers all topics & solutions for Class 12 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise .
Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise for Class 12 2025 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise covers all topics & solutions for Class 12 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise .
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Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise , a detailed solution for Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise has been provided alongside types of Rohit LTD. purchased asstes from rohan and co. for rs.350000. A sum of RS.75000 was paid by the means of bank draft and for the balance due Rohit LTD. issued equity shares of RS 10 each at a premium of 10%.joirnalise theory, EduRev gives you an
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