Pass necessary journal entries for the following transactions in the books of Rajan Ltd.
Rajan Ltd. purchased machinery of Rs 7,20,000 from Kundan Ltd. The payment was made to Kundan Ltd. by issue of equity shares of Rs 100 each at 10% discount.


Working Note:
Calculation of Number of Shares to be issued:
No of Shares = Purchase price of machinery / Issue Price
= 7,20,000/ 90 = 8000 shares