Company Account -ISSUE OF SHARES TO VENDORS ( Q. 2.)
Channel: vikash chakraborty
Date: 2017-01-25

Question: 2. X Ltd. purchased furniture of Rs. 10,00,000 from Y Ltd. and paid 20% of the amount by accepting a bill of exchange in favour of Y Ltd. The remaining amount was paid by issuing equity share of Rs.100 each at a premium of 25% to Y Ltd. Showing your working note clearly, pass necessary Journal entries for the above transaction in the books of X Ltd.
[C.B.S.E. 2013]