Question

XYZ Co Ltd. has purchased the business of ABC Lid. consisting assets of? 4,50,000 and liabilities of 1.50,000 for a consideration of 4,00.000. It sued 10% debentures of 100 each fully paid in satisfaction of purchase consideration Make journal entries. Gasping Furnishing and Decoration Lid raised a secured loan ? 10,00,000 from State Bank of India and issued 1.500 10% debentures 21,000 each as collateral security. Give the treatment of issue of such debenture in the books of the company. 1. Make journal entries for the issue of 10% debentures of 3 100 cach in following cases: (a) 4,000 debentures issued at 100, redeemable at 120 (b) 2,000 debentures issued at 120, redeemable at 100 5 cabanture icon 0 recomable at > 100​

Answer 1

Answer:

XYZ Co Ltd. has purchased the business of ABC Lid. consisting assets of? 4,50,000 and liabilities of 1.50,000 for a consideration of 4,00.000. It sued 10% debentures of 100 each fully paid in satisfaction of purchase consideration Make journal entries. Gasping Furnishing and Decoration Lid raised a secured loan ? 10,00,000 from State Bank of India and issued 1.500 10% debentures 21,000 each as collateral security. Give the treatment of issue of such debenture in the books of the company. 1. Make journal entries for the issue of 10% debentures of 3 100 cach in following cases: (a) 4,000 debentures issued at 100, redeemable at 120 (b) 2,000 debentures issued at 120, redeemable at 100 5 cabanture icon 0 recomable at > 100

Explanation:

(b) 2,000 debentures issued at 120, redeemable at 100 5 cabanture icon 0 recomable at > 100