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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Romi Ltd. acquired assets of ₹20 lakhs and took over creditors of ₹2 lakhs from Kapil Enterprises. Romi Ltd. issued 8% Debentures of ₹100 each at a discount of 10% as purchase consideration. Record the necessary Journal entries in the books of Romi Ltd.
JOURNAL (Books of Romi Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Assets A/c Dr. | 20,00,000 | |||
| To Creditors A/c | 2,00,000 | |||
| To Kapil Enterprises A/c | 18,00,000 | |||
| (Assets purchased and creditors taken over from Kapil Enterprises) | ||||
| Kapil Enterprises A/c Dr. | 18,00,000 | |||
| Discount on Issue of Debentures A/c Dr. | 2,00,000 | |||
| To 8% Debentures A/c | 20,00,000 | |||
| (20,000; 8% Debentures of ₹100 each issued to Kapil Enterprises at a 10% discount) |
Working Note: Number of debentures to be issued = Purchase consideration ÷ Issue price = 18,00,000 ÷ (100 − 10) = 18,00,000 ÷ 90 = 20,000 debentures.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.20 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Issue of Debentures.
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