(Issue of Shares for Purchase of Business).
Rajan Ltd. purchased a running business from Vikas Ltd. For a sum of Rs. 2,50,000 payable as Rs. 2,20,000 in fully paid equity shares of Rs. 10 each and balance by a bank draft. The assets and liabilities consisted of the following:
Plant and Machinery Rs. 90,000, Building Rs. 90,000, Sundry Debtors Rs. 30,000, Stock Rs. 50,000, Cash Rs. 20,000, Sundry Creditors Rs. 20,000.
Journalise the above transactions.
