Journal entry for "bought 150 shares in X.ltd @Rs.25 per share
To create a journal entry for buying 150 shares in X.ltd at Rs. 25 per share, you need to consider the double-entry bookkeeping system. This system requires at least two accounts to be affected by the transaction - one account is debited, and another is credited.
Here's an example of a journal entry for this transaction:
Date: [Date of the transaction]
Account Title: [Share Investment or Stock Investment]
Debit: [150 shares x Rs. 25 per share = total amount invested]
Credit: [Cash or Bank Account]
Let me break it down further for easier understanding:
1. Identify the accounts involved:
- Share Investment or Stock Investment (Debit)
- Cash or Bank Account (Credit)
2. Determine the amounts:
- Number of shares: 150 shares
- Price per share: Rs. 25
- Total amount invested: 150 shares x Rs. 25 per share = Rs. 3,750 (this is the amount to be debited)
3. Record the journal entry:
- Debit: Share Investment or Stock Investment (Rs. 3,750)
- Credit: Cash or Bank Account (Rs. 3,750)
Remember to include the appropriate date for the transaction.
This journal entry records the purchase of 150 shares in X.ltd at a price of Rs. 25 per share. It reflects the decrease in cash (debit) and the increase in the investment in shares (credit).