K Ltd. took over the assets of Rs. 15,00,000 and liabilities of Rs. 5,00,000 of P Ltd. for a purchase consideration of Rs. 13,68,500. Rs. 25,500 were paid by issuing a promissory note in favour of P Ltd. payable after two months and the balance was paid by issue of equity shares of Rs. 100 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of K Ltd.

Explanation

Note: Number of equity shares to be issued =(Purchase consideration-Payment through Promissory Note)+Issue price
=Rs. (13,68,500-25,500)/Rs. 125=10,744 shares