R Ltd. purchased the assets of S Ltd. for Rs. 5,00,000. It also agreed to take over the liabilities of S Ltd. amounted to Rs. 2,00,000 for a purchase consideration of Rs. 2,80,000. The payment of S Ltd. was made by issue of 9% Debentures of Rs. 100 each at par. Pass necessary journal entries in the books of R Ltd. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingR Ltd. purchased the assets of S Ltd. for Rs. 5,00,000. It also agreed to take over the liabilities of S Ltd. amounted to Rs. 2,00,000 for a purchase consideration of Rs. 2,80,000. The payment of S Ltd. was made by issue of 9% Debentures of Rs. 100 each at par. Pass necessary journal entries in the books of R Ltd.
Exe Ltd. purchased the assets of the book value Rs. 4,00,000 and took over the liabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000 be paid by issuing debentures of Rs. 100 each. Pass journal entries if debenture is 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. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingExe Ltd. purchased the assets of the book value Rs. 4,00,000 and took over the liabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000 be paid by issuing debentures of Rs. 100 each. Pass journal entries if debenture is 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.
Romi Ltd. acquired assets of Rs. 20 lakhs and took over creditors of Rs. 2 lakhs from Kapil Enterprises. Romi Ltd. issued 8% Debentures of Rs. 100 each at a discount of 10% as purchase consideration. Record necessary journal entries in the books of Romi Ltd. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingRomi Ltd. acquired assets of Rs. 20 lakhs and took over creditors of Rs. 2 lakhs from Kapil Enterprises. Romi Ltd. issued 8% Debentures of Rs. 100 each at a discount of 10% as purchase consideration. Record necessary journal entries in the books of Romi Ltd.
Star Ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Moon Ltd. for Rs. 6,00,000. Give necessary Journal entries in the books of Star Ltd. assuming that:Case (a): The purchase consideration was payable 10% in cash and the balance in 5,400; 12% Debentures of Rs. 100 each.Case (b): The purchase consideration was payable 10% in cash and the balance in 4,500; 12% Debentures of Rs. 100 each issued at 20% premium. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingStar Ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Moon Ltd. for Rs. 6,00,000. Give necessary Journal entries in the books of Star Ltd. assuming that:Case (a): The purchase consideration was payable 10% in cash and the balance in 5,400; 12% Debentures of Rs. 100 each.Case (b): The purchase consideration was payable 10% in cash and the balance in 4,500; 12% Debentures of Rs. 100 each issued at 20% premium.
Bright Ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Star Ltd. for an agreed purchase consideration of Rs. 6,00,000 payables 10% in cash and the balance by the issue of 12% Debentures of Rs. 100 each. Give necessary Journal entries in the books of Bright 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. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingBright Ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Star Ltd. for an agreed purchase consideration of Rs. 6,00,000 payables 10% in cash and the balance by the issue of 12% Debentures of Rs. 100 each. Give necessary Journal entries in the books of Bright 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.
Reliance Ltd. purchased machinery costing Rs. 1,35,000. It was agreed that the purchase consideration be paid by issuing 9% Debentures of Rs. 100 each. Assume debentures have been issued (i) at par and (ii)at a discount of 10%. Give necessary journal entries. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingReliance Ltd. purchased machinery costing Rs. 1,35,000. It was agreed that the purchase consideration be paid by issuing 9% Debentures of Rs. 100 each. Assume debentures have been issued (i) at par and (ii)at a discount of 10%. Give necessary journal entries.
Newton Ltd. purchased a Machinery from B for Rs. 5,76,000 to be paid by the issue of 9% Debentures of Rs. 100 each at 4% discount. Journalise the transactions. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingNewton Ltd. purchased a Machinery from B for Rs. 5,76,000 to be paid by the issue of 9% Debentures of Rs. 100 each at 4% discount. Journalise the transactions.
Ananya Ltd. purchased an established business for Rs. 2,00,000 payables as Rs. 65,000 by cheque and the balance by issuing 9% Debentures of Rs. 100 each at a discount of 10%. Give journal entries in the books of Ananya Ltd. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingAnanya Ltd. purchased an established business for Rs. 2,00,000 payables as Rs. 65,000 by cheque and the balance by issuing 9% Debentures of Rs. 100 each at a discount of 10%. Give journal entries in the books of Ananya Ltd.
Joy Ltd. company bought a Building for Rs. 9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of Rs. 100 each at a discount of 10%. Give Journal entries. Post category:Accountancy Reading time:1 mins read Solution Continue ReadingJoy Ltd. company bought a Building for Rs. 9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of Rs. 100 each at a discount of 10%. Give Journal entries.
