Vimal Ltd. purchased machinery of ₹ 9,90,000 from Kamal Ltd. The payment to Kamal Ltd was made by issuing equity shares of ₹ 100 each

Vimal Ltd. purchased machinery of ₹ 9,90,000 from Kamal Ltd. The payment to Kamal Ltd was made by issuing equity shares of ₹ 100 each. Pass the necessary Journal entries in the books of Vimal Ltd. for purchase of machinery and the issue of shares when

(i) Shares were issued at par.

(ii) Shares were issued at 25% premium.

[Ans. Face value of shares issued in Case (i) ₹ 9,90,000; Case (ii) ₹ 7,92,000]