Company A issues 500 shares of Rs.10 each in exchange for land worth Rs.5,000. What journal entry does the company record?
1
Land Account Dr. Rs.5,000
To Share Capital Account Rs.5,000
To Share Capital Account Rs.5,000
2
Land Account Dr. Rs.5,000
To Share Capital Account Rs.4,000
To Securities Premium Account Rs.1,000
To Share Capital Account Rs.4,000
To Securities Premium Account Rs.1,000
3
Share Capital Account Dr. Rs.5,000
To Bank Account Rs.5,000
To Bank Account Rs.5,000
4
Bank Account Dr. Rs.5,000
To Share Capital Account Rs.5,000
To Share Capital Account Rs.5,000