Adventure Trading Co. Ltd issued 15,000 equity shares of Rs.10 each at a

premium of Rs.2 per share payable as follows:

On Application Rs.3 per share

On Allotment Rs.5 per share (Including premium)

Balance on first and final call

The issue was fully subscribed. All money was duly received.

The company purchased a machine from Sagar Trading Co. for Rs.2,50,000. As

per the agreement Rs.50,000 was paid in cash and the balance by issue of

Equity shares of Rs.10 each at par.

The company also purchased Air Condition Plant from Asian Trading Company

for Rs.4,00,000 and issued Equity shares of Rs.10 each at a discount of 10%.

Pass journal entries in the books of Adventure Trading Co. Ltd