Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of Rs. 10 each at a premium of 10% and a bank draft of Rs. 50,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.

Marks-3, CBSE: 2023-24/Zone-5/Set-1/Q-19a*