question_answer

A company purchased a building for Rs. 3,60,000 and issued as payment equity shares at 20% premium. Journal entry will be:

A)

Building A/c                 Dr.	4,00,000
To Share Capital A/c		3,20,000
To Securities Premium Reserve A/c		80,000

 

B)

Share Capital A/c           Dr.	4,00,000
To Building A/c		3,60,000
To Securities Premium Reserve A/c		40,000

 

C)

Building A/c                 Dr.	3,60,000
To Share Capital A/c		3,00,000
To Securities Premium Reserve A/c		60,000

 

D)

Building A/c                 Dr.	3,60,000
To Share Capital A/c		60,000
To Securities Premium Reserve A/c		3,00,000