Are you looking for the solution to Question number 41 of the Accounting for Share Capital chapter of TS Grewal Book 2023-24 Edition CBSE Board?
Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each and the balance through cheque.
The assets and liabilities consisted of the following:
|Plant and Machinery||₹ 4,00,000|
|Sundry Debtors||₹ 3,00,000|
|Sundry Creditors||₹ 2,00,000|
You are required to pass necessary Journal entries in the company’s books:
[Ans.: Capital Reserve – ₹ 1,00,000.]