question_answer

Vinod Limited issued 2,000 Equity Shares of Rs.100 each as fully paid-up in consideration of the purchase of Plant and Machinery worth Rs.2,00,000. What entry will be recorded in company's Journal?

A) Plant and Machinery A/c Dr. and Share Capital A/c Cr. with 2,00,000.

B) Vendor's A/c Dr. and Plant and Machinery A/c Cr. with 2,00,000

C) Vendor's A/c Dr. and Share Capital A/c Cr. With 1,50,000

D) Vendor's A/c Dr. and Share Capital A/c Cr. With 2,00,000