Pass journal entries for the following X Ltd purchased Land and Building from R. Sundram for ₹ 5,00,000 payable in fully paid shares of ₹ 100 each at a premium of 25%

Pass journal entries for the following:

(i) X Ltd. purchased Land and Building from R. Sundram for ₹ 5,00,000 payable in fully paid shares of ₹ 100 each at a premium of 25%.

(ii) Y Ltd. decided to issue 2,000 shares of ₹ 100 each to the Unit Trust of India as underwriting commission.

[Ans. (i) 4,000 shares of ₹ 100 each issued at ₹ 25 per share premium.