Question

to provide employment to the youth and to develop the naxal affected backward areas of chattisgarh, X Ltd decided to set up a power plant. for raising the fund the company decided to issue 750000 equity share of Rs 10 each at a premium of 50% .The whole amount was payable on application. application for 2000000 were received.
application for 50000 were rejected and shares were alloted to the remaining.

pass journal entries.

Answer 1

To provide employment to the youth and to develop the naxal affected backward areas of chattisgarh, X Ltd decided to set up a power plant. for raising the fund