Question

X Ltd. acquired assets of 5,00,000 and took over the liabilities amounted to 7 50,000 at an agreed value of 4,00,000 of Y Ltd. X Ltd. issued 9%debentures at a discount of 20% in full satisfaction of the purchase price. Show the entries in the books of X Ltd.​

Answer 1

Answer:

Assets a/c Dr 500000

To Y. Ltd a/c 500000

Y. Ltd a/c Dr 400000

To Liabilities a/c 400000

9 % Debentures a/c Dr 900

Discount on Debentures a/c Dr 180

To Y. Ltd a/c 1080

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