'Panipat Blankets Limited' are the manufacturers and exporters of blankets. The company decided to distribute $1, 000$ blankets free of cost to five villages of Kashmir which had been damaged by the floods. It also decided to employ $100$ young persons from these villages in their newly established factory at Ludhiana in Punjab. To meet the requirements of funds for its new factory, the company issued $1, 00, 000$ equity shares of $R s 10$ each and $2, 000, 9 %$ debentures of $R s 100$ each to the vendors of machinery purchased for $R s 12, 00, 000$ .
Pass necessary journal entries for the above transactions in the books of the company. Also identify any one value which the company wants to communicate to the society.

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Solution

Values involved in the scenario :
i) Creation of employment opportunities
ii) Working for social welfare.

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Values involved in the scenario :i) Creation of employment opportunitiesii) Working for social welfare.

Values involved in the scenario :
i) Creation of employment opportunities
ii) Working for social welfare.