9.Kumar Ltd. purchased assets of Rs. 6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs. 100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%.
Books of Kumar Ltd.
Journal
| Date | Particulars | L.F | Amount (Dr.) | Amount (Cr.) | |
| Sundry Asset A/c | 6,30,000 | ||||
| To Bhanu Oil Ltd. A/c | 6,30,000 | ||||
| ( Being Asset purchase from Bhanu Oil Ltd.) | |||||
| Bhanu Oil Ltd. A/c | 6,30,000 | ||||
| To Share capital A/c | 6,30,000 | ||||
| ( Issued share to Bhanu Oil Ltd. of 6,300 shares ) | |||||
Working note
number of shares to be issued
Number of shares to be issued to Bhanu Oil Ltd. = Amount payable/ face value
=6,30,000/100
= Rs. 6,300
(II)
| Date | Particulars | L.F. | Amount (Dr.) | Amount (Cr.) | |
| Sundry Asset A/c | Dr. | 6,30,000 | |||
| To Bhanu Oil Ltd. A/c | 6,30,000 | ||||
| ( Being Asset purchase from Bhanu Oil Ltd.) | |||||
| Bhanu Oil Ltd. A/c | Dr. | 6,30,000 | |||
| To share Capital A/c | 5,25,000 | ||||
| To Securities Premium A/c | 1,05,000 | ||||
| (5,250 share are issued at 20% premium to Bhanu Ltd. in consideration of assets purchased) |