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Exe Ltd. purchased the assets of the book value ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the purchase consideration, settled at ₹ 3,80,000 be paid by issuing debentures of ₹ 100 each. Pass journal entries if debenture are issued: (a) at par (b) at a discount of 10% and (c) at a premium of 10%. It was agreed that any fraction of debentures be paid in cash. |
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Answer» . issued 5,000, 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the YEAR ended 31st MARCH, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%.HIPE THIS HELPS |
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