Question: X Co. Ltd. has its share capital divided into equity shares of 10 each. On 1.4.20X1 it granted 20,000 employees' stock option at * 50

X Co. Ltd. has its share capital divided into

X Co. Ltd. has its share capital divided into equity shares of 10 each. On 1.4.20X1 it granted 20,000 employees' stock option at * 50 per share when the market price was 120 per share. Fair value per option was 70. The options were to be exercised between 15th March, 20X2 and 31 st March, 20X2. The employees exercised their options for 16,000 shares only and the remaining options lapsed. The company closes its books on 31st March every year. Show Journal entries (with narration) as would appear in the books of the company up to 31st March, 20x2

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