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(Private placement of shares) Chiyo Ltd. has an authorised capital of $2,50,000 shares of $100 each. The company has adready issued 1,00,00 shares to

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(Private placement of shares) Chiyo Ltd. has an authorised capital of $2,50,000 shares of $100 each. The company has adready issued 1,00,00 shares to the public by way of issuing prospects. Due to diversification of activities company is an urgent need of more funds. However, due to depression in the stock market the Directors of the company instead of going for public issue approached some selected group of persons to apply for 1,00,000 equity shares at 10% premium through private placement. The shares were fully subscribed and paid. Pass necessary entries for the issue of shares through private placement.

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