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

Question 23 Chapter 9 of +2-A

Table of Contents

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

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)

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 )