Journal Entry for Issuing Equity Shares

To record the issuance of 2,000 equity shares valued at Rs. 10 each to X Ltd., from whom assets worth Rs. 25,000 were acquired, the following journal entry needs to be passed:

1. Assets Acquired
Assets acquired from X Ltd. will be recorded as an increase in the asset account and a corresponding increase in the equity capital. The journal entry for this transaction is as follows:

Date: [Date of the transaction]
Assets A/C Dr. Rs. 25,000
To Equity Share Capital A/C Rs. 20,000
To Securities Premium A/C Rs. 5,000

Explanation:
The journal entry above is based on the assumption that the assets acquired have a fair value of Rs. 25,000. The equity share capital is credited with the nominal value of the shares issued, which is Rs. 20,000 (2,000 shares x Rs. 10 per share). The remaining Rs. 5,000 represents the securities premium, which is the excess of the fair value of the assets acquired over the nominal value of the shares issued.

2. Assets Acquired (Alternative Scenario)
In case the assets acquired do not have a fair value but are acquired for the nominal value of shares issued, the journal entry will be as follows:

Date: [Date of the transaction]
Assets A/C Dr. Rs. 25,000
To Equity Share Capital A/C Rs. 20,000
To Share Application A/C Rs. 5,000

Explanation:
In this scenario, the entire value of Rs. 25,000 is recorded as an increase in the asset account. The equity share capital is credited with the nominal value of the shares issued, which is Rs. 20,000 (2,000 shares x Rs. 10 per share). The remaining Rs. 5,000 is recorded as a liability under the Share Application account, representing the amount due from X Ltd. for the shares issued.

Summary:
In summary, the journal entry for issuing 2,000 equity shares of Rs. 10 each and acquiring assets worth Rs. 25,000 from X Ltd. can be recorded in one of the following ways:

1. If assets have a fair value:
Assets A/C Dr. Rs. 25,000
To Equity Share Capital A/C Rs. 20,000
To Securities Premium A/C Rs. 5,000

2. If assets are acquired for the nominal value of shares:
Assets A/C Dr. Rs. 25,000
To Equity Share Capital A/C Rs. 20,000
To Share Application A/C Rs. 5,000

It is important to note that the above journal entries are based on the assumption that the assets acquired have a fair value or are acquired for the nominal value of the shares issued. The actual journal entry may vary depending on the specific details of the transaction.