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X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions.
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Journal Entries for Purchase of Machinery by X Ltd.
Issuing 10% Debentures of Rs.100 each at a discount of 20%
- 10% Debenture Account Dr. Rs.2,50,000
- Discount on Issue of Debentures Account Dr. Rs.50,000
- To Y Ltd. Account Cr. Rs.3,00,000
Explanation: X Ltd. issued 10% debentures of Rs.100 each to Y Ltd. for Rs.3,00,000, out of which a discount of 20% was allowed. Hence, the debentures were issued at a price of Rs.80 each. The amount of the debentures issued was Rs.2,50,000 (i.e. 3,00,000/1.2). The discount on the issue of debentures was Rs.50,000 (i.e. 3,00,000 - 2,50,000).
Issuing Equity Shares of Rs.10 Each at a Premium of 25%
- Machinery Account Dr. Rs.2,50,000
- Share Capital Account (Equity) Dr. Rs.1,25,000
- Securities Premium Account Dr. Rs.62,500
- To Y Ltd. Account Cr. Rs.4,37,500
Explanation: X Ltd. paid Rs.2,50,000 to Y Ltd. for the purchase of machinery by issuing equity shares of Rs.10 each at a premium of 25%. Hence, the total amount of equity shares issued was Rs.3,12,500 (i.e. 2,50,000 + 62,500). The amount of share capital (equity) was Rs.1,25,000 (i.e. 12,500 shares of Rs.10 each). The amount of securities premium was Rs.62,500 (i.e. 25% of Rs.2,50,000). The remaining amount of Rs.1,87,500 (i.e. 4,37,500 - 2,50,000) was paid to Y Ltd. for the purchase of machinery.
In summary, X Ltd. purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. The journal entries for these transactions are given above.
Issuing 10% Debentures of Rs.100 each at a discount of 20%
- 10% Debenture Account Dr. Rs.2,50,000
- Discount on Issue of Debentures Account Dr. Rs.50,000
- To Y Ltd. Account Cr. Rs.3,00,000
Explanation: X Ltd. issued 10% debentures of Rs.100 each to Y Ltd. for Rs.3,00,000, out of which a discount of 20% was allowed. Hence, the debentures were issued at a price of Rs.80 each. The amount of the debentures issued was Rs.2,50,000 (i.e. 3,00,000/1.2). The discount on the issue of debentures was Rs.50,000 (i.e. 3,00,000 - 2,50,000).
Issuing Equity Shares of Rs.10 Each at a Premium of 25%
- Machinery Account Dr. Rs.2,50,000
- Share Capital Account (Equity) Dr. Rs.1,25,000
- Securities Premium Account Dr. Rs.62,500
- To Y Ltd. Account Cr. Rs.4,37,500
Explanation: X Ltd. paid Rs.2,50,000 to Y Ltd. for the purchase of machinery by issuing equity shares of Rs.10 each at a premium of 25%. Hence, the total amount of equity shares issued was Rs.3,12,500 (i.e. 2,50,000 + 62,500). The amount of share capital (equity) was Rs.1,25,000 (i.e. 12,500 shares of Rs.10 each). The amount of securities premium was Rs.62,500 (i.e. 25% of Rs.2,50,000). The remaining amount of Rs.1,87,500 (i.e. 4,37,500 - 2,50,000) was paid to Y Ltd. for the purchase of machinery.
In summary, X Ltd. purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. The journal entries for these transactions are given above.
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X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions.
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X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions..
X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions..
Solutions for X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. in English & in Hindi are available as part of our courses for Class 12.
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X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions., a detailed solution for X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. has been provided alongside types of X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. theory, EduRev gives you an
ample number of questions to practice X Ltd., purchased machinery for Rs.5,00,000 from Y Ltd. Half of the amount was paid by issuing 10% Debentures of Rs.100 each at a discount of 20%. The balance was paid by issue of Equity Shares of Rs.10 Each at a Premium of 25%. Pass necessary Journal entries in the books of X Ltd., for these transactions. tests, examples and also practice Class 12 tests.
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