1.

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.

Answer» 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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