The Human Resources team of Rama Ltd. has implemented an Employee Stock Option Plan for eligible employees one year after listing of the Company's share in stock exchange. On April 1, 2022, Options were granted for 20,00

Rama Limited Journal Entries Date Particulars Amount in (Dr) Amount in (Cr) 15th March 2023 to 31st March 2023 Bank A/c (19,000 x ₹ 40) Dr. Employee compensation expense A/c [19,000 x (₹ 130 - ₹ 40)] Dr. To Equity share capital A/c (19,000 x ₹ 10) To Securities premium A/c [19,000 x (₹ 130 - ₹ 10)] (Being allotment to employees of 19,000 equity shares of ₹ 10 each at a premium of ₹ 120 per share in exercise of stock options by employees) Note: Assuming Face value of equity share is ₹ 10 7,60,000 17,10,000 1,90,000 22,80,000 31st March 2023 Profit and Loss A/c Dr. To Employee compensation expense A/c (Being transfer of employee compensation expense to profit and loss account) 17,10,000 17,10,000