# Question 16 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question No16 - Chapter No.9 - T.S. Grewal +2 Book 2019-Solution

Question 16 Chapter 9 of +2-A

16. Reliance Ltd. purchased machinery costing ​₹  1,35,000. It was agreed that the purchase consideration is paid by issuing 9% Debentures of ​₹  100 each. Assume debentures have been issued
(i) at par and
(ii)at a discount of 10%.
Give necessary journal entries.

### The solution of Question 16 Chapter 9 of +2-A: –

 Date Particulars L.F. Debit Credit Machine A/c Dr 1,35,000 To Vendor A/c 1,35,000 (Being asset purchased ) Vendor A/c Dr 1,35,000 To 6%Debenture A/c 1,35,000 (Being Debenture Issued)

Working Note

 No of Debenture to be issued = Purchase consideration = 1,35,000 = 1,350 shares Issue price 100

 Date Particulars L.F. Debit Credit Machine A/c Dr 1,35,000 To Vendor A/c 1,35,000 (Being asset purchased ) Vendor A/c Dr 1,35,000 Discount on Issue of Debenture A/c Dr 15,000 To 6%Debenture A/c 1,50,000 (Being Debenture Issued)

Working Note

 No of Debenture to be issued = Purchase consideration = 1,35,000 = 1,500 shares Issue price 90

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Also, Check out the solved question of previous Chapters: –