question_answer

Comprehensive Ltd was formed on 1st April, 2017 with an authorised capital of Rs. 40,00,000 divided into equity shares of Rs. 10 each.

(i) The company issued 10,000 shares to its promoters as the remuneration of the services rendered by them at par.

(ii) Company also issued shares at 10% premium to Mr. Rajesh for the purchase of assets of Rs. 3,30,000 from him.

Pass the journal entries for purchase of assets and shares issued to promoters and Mr. Rajesh.

Answer:

                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
(i)	Incorporation Expense A/c \[\left( 10,000\times 10 \right)\]	Dr		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Being shares issued to promoters)
(ii)	Sundry Assets A/c	Dr		3,30,000
	To Mr. Rajesh				3,30,000
	(Being assets purchased from Mr. Rajesh)
	Mr. Rajesh \[\left( 30,000\times 11 \right)\]	Dr		3,30,000
	To Share Capital A/c				3,00,000
	To Securities Premium Reserve A/c				30,000
	(Being shares issued to Mr. Rajesh)

Number of shares issued \[=\frac{3,30,000}{10+1}=30,000\] Shares