Question

Perfect Barcode Ltd. purchased computers from M/s. Computer Mart and paid the consideration as follows:
(a) 1,000, 10% Debentures of ₹ 100 each at a discount of 10% ; and
(b) Issued a cheque for ₹ 80,000 for the balance amount.
Pass the journal entry in the books of Perfect Barcode Ltd.

Answer 1

Solution:

                                                  Journal  

Particulars                                                               Dr. Rs.           Cr. Rs.

Computers A/c                                          Dr.        1,70,000

Discount on issue of Debenture A/c       Dr.         10,000

             To 10% Debentures A/c                                                1,00,000

              To Bank A/c                                                                   80,000

(Being purchase consideration 10% discount discharged)