Question 21 Chapter 9 of +2-A
Table of Contents
20. 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 25% as purchase consideration.Record necessary journal entries in the books of Romi Ltd.
The solution of Question 21 Chapter 9 of +2-A: –
Date | Particulars |
L.F. | Debit | Credit | |
Assets A/c | Dr | 20,00,000 | |||
To Creditors A/c | 2,00,000 | ||||
To Kapil Enterprises A/c | 18,00,000 | ||||
(Being assets purchased and creditors took over from Kapil ltd. ) | |||||
Kapil Enterprises Ltd A/c | Dr | 18,00,000 | |||
Discount on issue of debentures A/c | Dr | 2,00,000 | |||
To Securities premium A/c | 20,00,000 | ||||
(Being Debenture issued at securities premium) |
Working Note
No of Debenture to be issued | = | Purchase consideration | = | 18,00,000 | = | 20,000 debentures |
Issue price | 90 |
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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