Question

A company made a rights issue of 200,000 shares at ₹10 per share with a premium of  20%. What should be the journal entry for this transaction?

A Bank A/c Dr ₹24 lakhs To Equity Share Capital A/c ₹24 lakhs
B Bank A/c Dr ₹24 lakhs To Equity Share Capital A/c ₹16 lakhs To Securities Premium A/c ₹8 lakhs
C Bank A/c Dr ₹24 lakhs To Equity Share Capital A/c ₹20 lakhs To Securities Premium A/c ₹4 lakhs
D Bank A/c Dr ₹20 lakhs To Equity Share Capital A/c ₹16 lakhs To Securities Premium A/c ₹4 lakhs
E Bank A/c Dr ₹20 lakhs Securities Premium Dr A/c ₹4 lakhs To Equity Share Capital A/c ₹24 lakhs
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