Question

Bharat Limited purchased plant and machinery for 20,00,000 rupees from Delhi

machines limited by paying 5,00,000 Rupees by cheque and balance by issue of 11%

debentures of rupees 100 each at a premium of 20%. Pass necessary entry in the books

of Bharat Ltd. for the above transactions. Pass necessary entries in the books of Bharat

Limited for the above transactions.​

Answer 1

Answer:

Explanation:

   BHARAT LTD

JOURNALS

Plant & machinery      2000000

  To Delhi Machine A/c                      2000000

Delhi machine A/c     500000

     To Bank A/c                           500000

Delhi machine A/c    1500000

   To Debenture (11%)                      1250000

    To Securities                                 250000

Notes

Calculation of debentures issued

Purchase price / issue price= 2000000 -500000/120

= 1500000/ 120

= 12500