Question

(Loss on
Illustration 40.
On 1st April
, 2019, Anshika Ltd. purchased assets of *4,30,000 and took over liabilities of 79
of Greg Ltd. at an agreed value of 73,80,000. It issued to the vendor, 10% Debentures of 10
at 5% discount, redeemable at par after 5 years, in full satisfaction of the purchase price.
On the same date, the company issued 500, 11% Debentures of 100 each as a collateral secus
to a bank who had advanced a loan of 45,000 to it for a period of 3 years and also issued 5m
12% Debentures of 100 each at par, redeemable after 3 years at 5% premium.
Additional Information:
The interest on debentures is paid half yearly on 30th September and 31st March each yea
Tax deducted at source @ 20%. The Company had 1,20,000 in its Securities Premium Reser
Account at the end of the year (Ignore interest on bank loan).
Pass Journal entries in the books of Anshika Ltd. for the year ended 31st March, 2020.
Solution:
JOURNAL OF ANSHIKA LTD.​

Answer 1

Answer:

1,20,000 in its Securities Premium Reser

Account at the end of the year (Ignore interest on bank loan).

Pass Journal entries in the books of Anshika Ltd. for the year ended 31st March, 2020.