Question 21 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 21 Chapter 9 of +2-A

Question 21 Chapter 9 of +2-A

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)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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2 Book 2 min - Question 21 Chapter 9 of +2-A - T.S. Grewal 12 Class

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