Commerce Exam  >  Commerce Questions  >  ABC purchased an asserts from sohan Rs 570000... Start Learning for Free
ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %?
Most Upvoted Answer
ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30...
Community Answer
ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30...
Journal Entries for ABC Ltd Company
1. Issuance of Shares at Par Value
- Equity Share Capital A/c Dr 570,000
- To Sohan A/c 570,000
- (Being assets purchased from Sohan paid by issuing equity shares at par value)
2. Issuance of Shares at Premium
- Equity Share Capital A/c Dr 456,000
- Securities Premium A/c Dr 114,000
- To Sohan A/c 570,000
- (Being assets purchased from Sohan paid by issuing equity shares at a premium of 20%)

Explanation:
When shares are issued at par value, the journal entry involves debiting the Equity Share Capital account for the total value of shares issued and crediting the seller's account. In this case, the entry would be made for the full amount of Rs 570,000.
When shares are issued at a premium, the journal entry includes debiting the Equity Share Capital account for the par value of shares (Rs 570,000) and debiting the Securities Premium account for the premium amount (20% of Rs 570,000 = Rs 114,000). The total amount debited would still be Rs 570,000, but the premium amount is separately accounted for in the Securities Premium account.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %?
Question Description
ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %?.
Solutions for ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? defined & explained in the simplest way possible. Besides giving the explanation of ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %?, a detailed solution for ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? has been provided alongside types of ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? theory, EduRev gives you an ample number of questions to practice ABC purchased an asserts from sohan Rs 570000 and liabilities of Rs 30000.The purchase consideration was payable is fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd companyAssuming that such shares are issued at par and such shares are issued at premimum of 20 %? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev