Related InterviewSolutions

• XYZ Ltd. Acquired a business and agreed to pay purchase consideration of ₹ 2,00,000. The assets taken over are ₹ 5,50,000 and liabilities assumed are ₹ 4,00,000 What is the amount that will be debited to Goodwill Account or credited to Capital Reserve Account and why?
• Wellbeing Ltd. Took over assets of ₹ 9,80,000 and liabilities of ₹ 40,000 of HDR Ltd. At an agreed value of ₹ 9,00,000. Wellbeing Ltd. Paid to HDR Ltd. Bu issue of 9% Debentures of 100 each at a premium of 20% . Pass necessary Journal entries to record the above transaction in the books of Wellbeing Ltd.
• Exe Ltd. Purchased assets of the books value ₹ 4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros. It was agreed thet the purchaase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each. It was agreed that any fraction of debentures be paid in cash.
• R Ltd. Purchased the assets of S Ltd. For ₹ 5,00,000. It also agreed to take over the liabilities of S Ltd. Amounted to ₹ 2,00,000 for a purchase consideration of ₹ 2,80,000. The payment of S Ltd. Was made by issue of 9% Debentures of ₹ 100 each at par. Pass necessary Journal entries in the books of R Ltd.
• Green Ltd. Purchased the assets of Strong Ltd. For ₹ 40,00,000 and took over liabilities of ₹ 7,00,000 at an agreed value of ₹ 32,40,000. Payment was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd.
• Define Redeemable Debentures.
• Define Non-convertible Debentures.
• Deepak Ltd. Purchaed furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furnishar Mart by accepting a Bill of Exchange and for the balance the company issued 9% Journal entries in the books of Deepak Ltd.
• Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.
• Kitply Ltd. Issued ₹2,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the rapayment at the end of 4 years. Kitplu Ltd. has a balance of ₹ 5,00,000 in Securities Premium Reserve. Pass the Journal entries for issue of debentures and writing off the discount .