A Building was purchased for Rs9 00 000 and payment was made in Rs 100 shares at 20 premium Securiti...........

General Accounting Principles Accounting for Shares

A Building was purchased for Rs9,00,000 and payment was made in Rs 100 shares at 20% premium. Securities Premium Reserve A/c will be ……………….

Debited by Rs 1,50,000

Credited by Rs 1,50,000

Debited by Rs 1,80,000

Credited by Rs 1,80,000

purchase consideration= Rs. 9,00,000

shares@100+20% premium= 120per share

face value=9,00,000/120=7,500shares

security premium reserve=Rs.9,00,000-Rs.7,50,000=Rs.1,50,000

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