Question 23 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 23 Chapter 9 of +2-A

Question 23 Chapter 9 of +2-A

23. R Ltd. purchased the assets of S Ltd. for 5,00,000. It also agreed to take over the liabilities of S Ltd. amounted to 2,00,000 for a purchase consideration of 2,80,000. The payment of S Ltd. was made by issue of 9% Debentures of  100 each at par.
Pass necessary journal entries in the books of R Ltd.

The solution of Question 23 Chapter 9 of +2-A: – 

         
Date Particulars
L.F. Debit Credit
  Assets A/c Dr   5,00,000  
  To Liabilities A/c       2,00,000
  To S Ltd. A/c       2,80,000
  To Mohan Bros A/c       3,80,000
  (Being assets and liabilities purchased from S Ltd.. )        
  S. Ltd. A/c Dr   2,80,000  
  To 9%Debenture A/c       2,80,000
  (Being debenture issued )        

Working Note

 

No of Debenture to be issued  = Purchase consideration = 2,80,000 =  2,800 debentures
Issue price 100

 

 


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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 23 Chapter 9 of +2-A - T.S. Grewal 12 Class

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