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A limited company purchased a machinery worth rs. 115000 from indian traders. payment was made as to rs. 10000 by a crosses cheque and remaining amount by issue of equity shares of the face value of rs. 10 each fully paid at an issue price of rs. 10.50 each. make entries in company's journal?
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A limited company purchased a machinery worth rs. 115000 from indian t...
Journal Entries for the Limited Company:

1. Purchase of Machinery:
- Machinery A/c Dr 115000
- To Indian Traders A/c 115000
Explanation:
The company purchased machinery worth Rs. 115000 from Indian Traders. To record this transaction, we debit Machinery Account and credit Indian Traders Account.

2. Payment by Crossed Cheque:
- Indian Traders A/c 10000
- Bank A/c 10000
Explanation:
Payment of Rs. 10000 was made by a crossed cheque. To record this payment, we debit Indian Traders Account and credit Bank Account.

3. Payment by Issue of Equity Shares:
- Indian Traders A/c 105000
- Equity Share Capital A/c 10500
- Securities Premium A/c 94500
Explanation:
The remaining amount of Rs. 105000 was paid by issuing equity shares of face value of Rs. 10 each at an issue price of Rs. 10.50 each. To record this transaction, we debit Indian Traders Account, credit Equity Share Capital Account, and credit Securities Premium Account. The difference between the issue price and face value of shares is transferred to the Securities Premium Account.
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A limited company purchased a machinery worth rs. 115000 from indian traders. payment was made as to rs. 10000 by a crosses cheque and remaining amount by issue of equity shares of the face value of rs. 10 each fully paid at an issue price of rs. 10.50 each. make entries in company's journal?
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A limited company purchased a machinery worth rs. 115000 from indian traders. payment was made as to rs. 10000 by a crosses cheque and remaining amount by issue of equity shares of the face value of rs. 10 each fully paid at an issue price of rs. 10.50 each. make entries in company's journal? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A limited company purchased a machinery worth rs. 115000 from indian traders. payment was made as to rs. 10000 by a crosses cheque and remaining amount by issue of equity shares of the face value of rs. 10 each fully paid at an issue price of rs. 10.50 each. make entries in company's journal? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A limited company purchased a machinery worth rs. 115000 from indian traders. payment was made as to rs. 10000 by a crosses cheque and remaining amount by issue of equity shares of the face value of rs. 10 each fully paid at an issue price of rs. 10.50 each. make entries in company's journal?.
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