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13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions?
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13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It iss...
Journal Entries for Haneesh Ltd.
To record the transaction of purchasing land by issuing equity shares, two main journal entries are required:
1. Recording the Purchase of Land
- Date: [Insert Date]
- Account: Land Account
- Debit: Rs. 40,000
- Account: Equity Share Capital Account
- Credit: Rs. 40,000
*Explanation:* This entry reflects the acquisition of land. The Land account is debited to show the increase in assets, while the Equity Share Capital account is credited as it represents the equity shares issued in exchange for the land.
2. Issuing Equity Shares
- Date: [Insert Date]
- Account: Equity Share Capital Account
- Debit: Rs. 40,000
- Account: Dhaya Bros. (Liability) Account
- Credit: Rs. 40,000
*Explanation:* This entry captures the issuance of equity shares. The Equity Share Capital account is debited to record the increase in equity capital, while the Dhaya Bros. account is credited to show the settlement of their claim through shares.
Summary of the Transaction
- Land Purchased: Rs. 40,000
- Shares Issued: 4,000 shares of Rs. 10 each
- Total Capital Raised: Rs. 40,000
*The issuance of equity shares instead of cash helps conserve cash resources for Haneesh Ltd., while also providing Dhaya Bros. with ownership in the company.*
In conclusion, these journal entries effectively document the transaction, ensuring accurate financial reporting for Haneesh Ltd. and maintaining transparency in the capital structure.
To record the transaction of purchasing land by issuing equity shares, two main journal entries are required:
1. Recording the Purchase of Land
- Date: [Insert Date]
- Account: Land Account
- Debit: Rs. 40,000
- Account: Equity Share Capital Account
- Credit: Rs. 40,000
*Explanation:* This entry reflects the acquisition of land. The Land account is debited to show the increase in assets, while the Equity Share Capital account is credited as it represents the equity shares issued in exchange for the land.
2. Issuing Equity Shares
- Date: [Insert Date]
- Account: Equity Share Capital Account
- Debit: Rs. 40,000
- Account: Dhaya Bros. (Liability) Account
- Credit: Rs. 40,000
*Explanation:* This entry captures the issuance of equity shares. The Equity Share Capital account is debited to record the increase in equity capital, while the Dhaya Bros. account is credited to show the settlement of their claim through shares.
Summary of the Transaction
- Land Purchased: Rs. 40,000
- Shares Issued: 4,000 shares of Rs. 10 each
- Total Capital Raised: Rs. 40,000
*The issuance of equity shares instead of cash helps conserve cash resources for Haneesh Ltd., while also providing Dhaya Bros. with ownership in the company.*
In conclusion, these journal entries effectively document the transaction, ensuring accurate financial reporting for Haneesh Ltd. and maintaining transparency in the capital structure.
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13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions?
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13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions?.
13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 13. Haneesh Ltd. Purchased land for Rs. 40,000 from Dhaya Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions?.
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