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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs3000...
Lodu tum aap walo ne app download krva lia aur mujh se hi answer puch rhe ho
Community Answer
ABC purchased an asserts from sohan Rs 570000 and loabilitiesof Rs3000...
Journal Entries for Issuing Fully Paid Equity Shares at Par
1. Issue of Fully Paid Equity Shares
- Debit: Share Capital Account (Number of shares * Par value per share)
- Credit: Equity Share Application Account (Number of shares * Par value per share)
- Credit: Share Allotment Account (Number of shares * Par value per share)
2. Adjustment for Purchase Consideration
- Debit: Goodwill Account (Purchase consideration - Liabilities)
- Credit: Equity Share Application Account (Purchase consideration - Liabilities)
3. Adjustment for Liabilities
- Debit: Liabilities Account (Liabilities)
- Credit: Equity Share Application Account (Liabilities)
4. Transfer of Application and Allotment Money to Share Capital Account
- Debit: Equity Share Application Account (Number of shares * Par value per share)
- Debit: Share Allotment Account (Number of shares * Par value per share)
- Credit: Share Capital Account (Number of shares * Par value per share)
Journal Entries for Issuing Fully Paid Equity Shares at a Premium of 20%
1. Issue of Fully Paid Equity Shares
- Debit: Share Capital Account (Number of shares * Par value per share)
- Debit: Share Premium Account (Number of shares * Premium per share)
- Credit: Equity Share Application Account (Number of shares * Par value per share + Premium per share)
2. Adjustment for Purchase Consideration
- Debit: Goodwill Account (Purchase consideration - Liabilities)
- Credit: Equity Share Application Account (Purchase consideration - Liabilities)
3. Adjustment for Liabilities
- Debit: Liabilities Account (Liabilities)
- Credit: Equity Share Application Account (Liabilities)
4. Transfer of Application and Allotment Money to Share Capital Account
- Debit: Equity Share Application Account (Number of shares * Par value per share + Premium per share)
- Debit: Share Allotment Account (Number of shares * Par value per share)
- Credit: Share Capital Account (Number of shares * Par value per share)
- Credit: Share Premium Account (Number of shares * Premium per share)
Explanation:
- In the first scenario, where the fully paid equity shares are issued at par, the journal entries involve the transfer of the purchase consideration and liabilities to the equity share application account. The application and allotment money is then transferred to the share capital account.
- In the second scenario, where the fully paid equity shares are issued at a premium of 20%, an additional entry is made to debit the share premium account. The premium amount is added to the application and allotment money transferred to the share capital account.
- The adjustment for purchase consideration is made by debiting the goodwill account and crediting the equity share application account. This ensures that the purchase consideration is properly accounted for.
- The adjustment for liabilities is made by debiting the liabilities account and crediting the equity share application account. This ensures that the liabilities are properly accounted for.
- The transfer of application and allotment money to the share capital account is
1. Issue of Fully Paid Equity Shares
- Debit: Share Capital Account (Number of shares * Par value per share)
- Credit: Equity Share Application Account (Number of shares * Par value per share)
- Credit: Share Allotment Account (Number of shares * Par value per share)
2. Adjustment for Purchase Consideration
- Debit: Goodwill Account (Purchase consideration - Liabilities)
- Credit: Equity Share Application Account (Purchase consideration - Liabilities)
3. Adjustment for Liabilities
- Debit: Liabilities Account (Liabilities)
- Credit: Equity Share Application Account (Liabilities)
4. Transfer of Application and Allotment Money to Share Capital Account
- Debit: Equity Share Application Account (Number of shares * Par value per share)
- Debit: Share Allotment Account (Number of shares * Par value per share)
- Credit: Share Capital Account (Number of shares * Par value per share)
Journal Entries for Issuing Fully Paid Equity Shares at a Premium of 20%
1. Issue of Fully Paid Equity Shares
- Debit: Share Capital Account (Number of shares * Par value per share)
- Debit: Share Premium Account (Number of shares * Premium per share)
- Credit: Equity Share Application Account (Number of shares * Par value per share + Premium per share)
2. Adjustment for Purchase Consideration
- Debit: Goodwill Account (Purchase consideration - Liabilities)
- Credit: Equity Share Application Account (Purchase consideration - Liabilities)
3. Adjustment for Liabilities
- Debit: Liabilities Account (Liabilities)
- Credit: Equity Share Application Account (Liabilities)
4. Transfer of Application and Allotment Money to Share Capital Account
- Debit: Equity Share Application Account (Number of shares * Par value per share + Premium per share)
- Debit: Share Allotment Account (Number of shares * Par value per share)
- Credit: Share Capital Account (Number of shares * Par value per share)
- Credit: Share Premium Account (Number of shares * Premium per share)
Explanation:
- In the first scenario, where the fully paid equity shares are issued at par, the journal entries involve the transfer of the purchase consideration and liabilities to the equity share application account. The application and allotment money is then transferred to the share capital account.
- In the second scenario, where the fully paid equity shares are issued at a premium of 20%, an additional entry is made to debit the share premium account. The premium amount is added to the application and allotment money transferred to the share capital account.
- The adjustment for purchase consideration is made by debiting the goodwill account and crediting the equity share application account. This ensures that the purchase consideration is properly accounted for.
- The adjustment for liabilities is made by debiting the liabilities account and crediting the equity share application account. This ensures that the liabilities are properly accounted for.
- The transfer of application and allotment money to the share capital account is
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
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
ABC purchased an asserts from sohan Rs 570000 and loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming that such shares are issued at par and such shares are issued at premimum of 20%?.
ABC purchased an asserts from sohan Rs 570000 and loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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 loabilitiesof Rs30000.The purchase consideration was payable in fully paid equity share of Rs 10 each.Show the journal entries book of ABC ltd assuming 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
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup