Question

Vinod Limited purchased machinery worth Rs.55,000 from KK Limited. 10% was paid by

Vinod Limited by accepting a bill of exchange in favour of KK Limited and the balance was paid

by issue of 9% Debentures of Rs.100 each at par, redeemable after five years. Pass necessary

journal entries in the books of Vinod Limited.
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Answer 1

Answer:

Journal

Machinery account. dr. 55000

To Kk ltd. 55000

KK ltd. dr. 5500

To bills payable account 5500

KK ltd. dr 49500

To 9%debenture account. 49500

no. of debenture issued = 49500/100=495

Answer 2

Answer:

I hope you understand this answer