Question

Q. 11. A Company purchased Assets of the book value of \( ? 12,00,000 \) and Liabifities of \( ? 2,20,000 \) of another Company for a pirchase consideration of \( ?, 40,000 \). The purchase consideration was discharged by the issue of debentures of ? 500 èach at a discount of \( 6 \% \) Pass journal entries in the books of purchasing company. It was decided to write off the entire amount of discount on issue of debentures. Ans. Capital Reserve ? 40,000 ; Debentures issued : 2,000 Debentures of ?500 each Discount on Issue of Debentures \( ? 60,000 \); Out of this amount \( ? 40,000 \) will be written off

          Q. 11. A Company purchased Assets of the book value of \( ? 12,00,000 \) and Liabifities of \( ? 2,20,000 \) of another Company for a pirchase consideration of \( ?, 40,000 \). The purchase consideration was discharged by the issue of debentures of ? 500 èach at a discount of \( 6 \% \) Pass journal entries in the books of purchasing company. It was decided to write off the entire amount of discount on issue of debentures.

Ans. Capital Reserve ? 40,000 ; Debentures issued : 2,000 Debentures of ?500 each Discount on Issue of Debentures \( ? 60,000 \); Out of this amount \( ? 40,000 \) will be written off

Q. 11. A Company purchased Assets of the book value of ? 12,00,000 and Liabifities of ? 2,20,000 of another Company for a pirchase consideration of ?, 40,000. The purchase consideration was discharged by the issue of debentures of ? 500 èach at a discount of 6 % Pass journal entries in the books of purchasing company. It was decided to write off the entire amount of discount on issue of debentures.

Ans. Capital Reserve ? 40,000 ; Debentures issued : 2,000 Debentures of ?500 each Discount on Issue of Debentures ? 60,000; Out of this amount ? 40,000 will be written off

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