UPSC Exam > UPSC Questions > Radha and Shyam are partners of a firm. The f...
Start Learning for Free
Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.?
Most Upvoted Answer
Radha and Shyam are partners of a firm. The firm was converted into Ra...
Calculation of Purchase Price:
- 70% amount in Equity shares = 70% of total amount = 70% x Rs. 5,25,000 = Rs. 3,67,500
- Face value of Equity shares = Rs. 10
- Premium on Equity shares = 10% of face value = 10% x Rs. 10 = Rs. 1
- Issue price of Equity shares = Face value + Premium = Rs. 10 + Rs. 1 = Rs. 11
- Number of Equity shares issued = Amount / Issue price = Rs. 3,67,500 / Rs. 11 = 33,409 shares
Journal Entry:
1. To record the receipt of purchase price:
- Equity Share Capital A/c (70% in Equity shares) Dr. Rs. 3,67,500
- Securities Premium A/c Dr. Rs. 33,409
- Debentures A/c (25% in Debentures) Dr. Rs. 1,31,250
- Cash A/c Dr. Rs. 1,65,000
To Radheshyam Ltd. A/c (Purchase price) Cr. Rs. 6,96,159
Explanation:
- Equity Share Capital A/c and Securities Premium A/c are credited for the amount received in Equity shares.
- Debentures A/c is credited for the amount received in Debentures.
- Cash A/c is credited for the balance amount paid in cash.
- Radheshyam Ltd. A/c is debited for the total purchase price received.
This journal entry records the receipt of the purchase price in the books of the firm after the conversion into Radheshyam Ltd.
- 70% amount in Equity shares = 70% of total amount = 70% x Rs. 5,25,000 = Rs. 3,67,500
- Face value of Equity shares = Rs. 10
- Premium on Equity shares = 10% of face value = 10% x Rs. 10 = Rs. 1
- Issue price of Equity shares = Face value + Premium = Rs. 10 + Rs. 1 = Rs. 11
- Number of Equity shares issued = Amount / Issue price = Rs. 3,67,500 / Rs. 11 = 33,409 shares
Journal Entry:
1. To record the receipt of purchase price:
- Equity Share Capital A/c (70% in Equity shares) Dr. Rs. 3,67,500
- Securities Premium A/c Dr. Rs. 33,409
- Debentures A/c (25% in Debentures) Dr. Rs. 1,31,250
- Cash A/c Dr. Rs. 1,65,000
To Radheshyam Ltd. A/c (Purchase price) Cr. Rs. 6,96,159
Explanation:
- Equity Share Capital A/c and Securities Premium A/c are credited for the amount received in Equity shares.
- Debentures A/c is credited for the amount received in Debentures.
- Cash A/c is credited for the balance amount paid in cash.
- Radheshyam Ltd. A/c is debited for the total purchase price received.
This journal entry records the receipt of the purchase price in the books of the firm after the conversion into Radheshyam Ltd.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.?
Question Description
Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.?.
Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.?.
Solutions for Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? defined & explained in the simplest way possible. Besides giving the explanation of
Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.?, a detailed solution for Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? has been provided alongside types of Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? theory, EduRev gives you an
ample number of questions to practice Radha and Shyam are partners of a firm. The firm was converted into Radheshyam Ltd. The Company agreed to pay 70% amount in Equity shares of Rs. 10 each at 10% premiurn, 25% amount in Debentures of Rs. 100 each and balance amount of Rs. 1,65,000 in Cash. Compute purchase price and write journal entry in the books of the firm for receiving the purchase price.? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup