1.

X Ltd . took over the assets of ₹ 6,00,000 and liabilities of ₹ 80,000 of Y Ltd for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each . Give necessary journal entries in the books of X Ltd., assuming that:Case (a): The debentures are issued at par.Case (b): The debentures are issued at 20% premium.Case (c): The debentures are issued at 10% discount.

Answer» X Ltd . took over the assets of ₹ 6,00,000 and liabilities of ₹ 80,000 of Y Ltd for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each . Give necessary journal entries in the books of X Ltd., assuming that:

Case (a): The debentures are issued at par.

Case (b): The debentures are issued at 20% premium.

Case (c): The debentures are issued at 10% discount.


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