Question

purchase land for the new project. The value of land is Rs 5000000. The
company issued equity shares to the landowner for Rs 3000000 and for balance amount
paid by cash. Prepare journal for issue of shares.

Answer 1

Answer:

land AC Dr 5000000

to landowner AC 5000000

landowner Dr 5000000

to share capital AC 3000000

to cash AC 2000000