The following balances were shown in the Balance Sheet of Geeta Ltd. as at 31 st March, 2019: Particulars Amount (₹ in lakh) 500 lakh Equity Shares of ₹10 each fully paid up 5,000 50 lakh, 8% Preference Shares of ₹10 eac

Journal Entries in the books of Geeta Ltd. (Rs. in lakh) S. No. Particulars Dr. Cr. 1. Bank a/c Dr. 2500 To Investment a/c 2200 To Statement of Profit and Loss 300 (Being investment sold for the purpose of buy-back of equity shares) 2. Equity share capital a/c Dr. 1000 Securities premium a/c (premium payable on buyback) Dr. 3500 To equity share buy-back a/c 4500 (being the amount due on buy back of equity shares) 3. General reserve a/c Dr. 1000 To Capital redemption reserve a/c 1000 (Being due to buy back of shares, creation of capital redemption reserve) 4. Equity share buy-back a/c Dr. 4500 To bank a/c 4500 (being payment made for buy back of equity shares) 5. 12% Debenture a/c Dr. 180 To Own debenture a/c 150 To Capital reserve a/c (Profit on cancellation) 30 (being own debentures cancelled at profit) Alternatively, for entry no. 3 following entry may be passed: Particulars Dr. Cr. Securities premium a/c Dr. 500 Surplus a/c Dr. 500 To Capital redemption reserve a/c 1000 (Being securities premium and surplus a/c utilised for creation of CRR a/c)