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Question 22 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 22 Chapter 9 of +2-A
Question No22 - Chapter No.9 - T.S. Grewal +2 Book 2019-Solution

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Question 22 Chapter 9 of +2-A

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22. Exe Ltd. purchased the assets of the book value  ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the  purchase consideration ,settled at  ₹3,80,000 be paid by issuing debentures  of ₹ 100 each.
Pass journal entries if debenture are issued:
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash..

The solution of Question 22 Chapter 9 of +2-A: – 

     
DateParticulars
L.F.DebitCredit
 Assets A/cDr 4,00,000 
 Goodwill A/cDr 30,000 
 To Liabilities A/c   50,000
 To Mohan Bros A/c   3,80,000
 (Being assets and liabilities purchased from Mohan Bros. )    
 When Debenture issued at par    
 Mohan Bros A/cDr 3,80,000 
 To Debenture A/c   3,80,000
 (Being Debenture issued at securities premium)    

Working Note

 

No of Debenture to be issued =Purchase consideration=3,80,000= 3,800 debentures
Issue price100

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DateParticulars
L.F.DebitCredit
 Assets A/cDr 4,00,000 
 Goodwill A/cDr 30,000 
 To Liabilities A/c   50,000
 To Mohan Bros A/c   3,80,000
 (Being assets and liabilities purchased from Mohan Bros. )    
 When Debenture issued at 10% Discount    
 Mohan Bros A/cDr 3,80,000 
 Discount on Issue of Debenture A/cDr 42,220 
 To Debenture A/c   4,22,200
 To Bank A/c   20
 (Being Debenture issued at securities premium)    

 

 

No of Debenture to be issued =Purchase consideration=3,80,000=4,222 debentures
Issue price90

 

 

DateParticulars
L.F.DebitCredit
 Assets A/cDr 4,00,000 
 Goodwill A/cDr 30,000 
 To Liabilities A/c   50,000
 To Mohan Bros A/c   3,80,000
 (Being assets and liabilities purchased from Mohan Bros. )    
 When Debenture issued at 10% premium    
 Mohan Bros A/cDr 3,80,000 
 To Debenture A/c   3,45,400
 To Securities Premium A/c   34,540
 To Bank A/c   60
 (Being Debenture issued at securities premium)    

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No of Debenture to be issued =Purchase consideration=3,80,000=3,454.6 Debentures
Issue price110

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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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 2-min

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