Accountancy is a necessity, Auditing is a luxury'  Comment, giving reasons for your opinion.

 

Tushar Ltd. Provides you the following information:

1. Issued capital: 200000 Equity shares of Rs. 10 each

20000, 10% Pref. Shares of Rs 100 each (issued two months back for the purpose of buy-back) 

2. Reserve and Surplus:

Capital Reserve: Rs 1000000

Securities Premium : Rs. 1800000

Revenue Reserve: Rs 3000000

Profit and loss A/c: 4000000

3. Resolution passed to buy back of shares : 25% of equity shares @ Rs 50 per share

You are required to pass the journal entries to record the above transactions assuming that the company achieved the target of buy back.