Issue of shares in consideration of purchase of plant and machinery result into :-
(A) Inflow of cash
(B) Outflow of cash
(C) Neither inflow nor outflow of cash
(D) None of these
1 Answers
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The machinery of ₹ 35,500 is purchased on 1st July 2018 and on the same day ₹ 4,500 are spent on the installation of the Machinery.
Cost of Machinery = Purchase Price + Installation Charges = 35,500 + 4,500 = ₹ 40,000 Depreciation for 9 months = 40,000 × \(\frac{7}{100}\times\frac{9}{12}\) = ₹ 2,100
2 Answers 2 views
Newton Ltd. purchased a Machinery from B for ₹ 5,76,000. to be paid by the issue of 9% Debentures of ₹ 100 each at 4% discount . Journalise the tr
Correct Answer - 6,000 Debentures of ₹ 100 each .
2 Answers 1 views
Reliance Ltd. Purchased machinery costing ₹ 1,35,000. It was agreed that the purchase consideration be paid by issuing 9% Debentures of ₹ 100 each
Correct Answer - Number of Debentures Issued -(i) 1,350; (ii) 1,500.
2 Answers 1 views
Bright Ltd. Took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of star Ltd. For an agreed purchase consideration of ₹ 6,00,000 payab
Correct Answer - Entry in all Cases: Dr Sundry Assets A/c- ₹ 6,60,000 and Goodwill A/c - ₹ 20,000; Cr . Sundry Liabilities A/c - ₹ 80,000 and star Ltd....
2 Answers 1 views
Goodluck Ltd. purchased machinery costing Rs. 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of Rs. 10 each at a
Correct Answer - 80,000 Equity Shares to be issued.
2 Answers 1 views
Bharat Lamp Ltd. Issued 30,000 fully paid-up shares of Rs. 100 each for purchase of the following assets and liabilities from Sharma & Co: `{:("Plant"
Correct Answer - Goodwill-Rs. 4,00,000.
2 Answers 1 views
Sandesh Ltd. took over the assets of Rs. 7,00,000 and liabilities of Rs. 2,00,000 from Sanchar Ltd. For a purchase consideration of Rs. 4,59,500 . Rs.
Correct Answer - Capital Reserve-Rs 40,500.
2 Answers 1 views
(i) Machinery purchase on credit will be recorded in ___________ subsidiary book.
(i) Journal Proper (ii) Sales Return (iii) Journal Proper (iv) Debit (v) Pay-in-slip (vi) Cross Account Payee
2 Answers 1 views
Pardhiv bought two types of shares A and B worth Rs.5000 each. If he bought 25 type A shares and 20 type B shares, then the difference between their f
Correct Answer - Rs.50
2 Answers 1 views
Welprint Ltd has given the following information : `{:(,,"₹"),(,"Machinery as on 1st April, 2018", "50,000"),(,"Machinery as on 31st March, 2019","60,
Correct Answer - Cash Used in Investing Activities = ₹ 22,000
2 Answers 1 views