Question 23 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 23 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 23 Chapter 9 of +2-Part-1

23. (Issue for Purchase Consideration other than Cash at Par) R Ltd., purchased the assets of S Ltd. for Rs. 5,00,000. It also agreed to take over the liabilities of S Ltd. amounting to Rs. 2,00,000 for a purchase consideration of Rs. 2,80,000. The payment to S Ltd. was made by issue of 12% debentures of 100 each at par. Pass the necessary journal entries in the books of R Ltd.

The solution of Question 23 Chapter 9 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit ₹
i Sundry Assets A/c Dr.   5,00,000  
  To Sundry Liabilities A/ c       2,00,000
  To Liquidators of S Ltd.       2,80,000
  To Capital Reserve A/ c       20,000
  (Being Assets & liabilities of S Ltd. Taken over)      
         
ii Liquidators of S Ltd. Dr.   2,80,000  
  To 12% Debenture A/c     2,80,000
  (Being consideration paid by issue of debentures at par)      
         

It all about Question 23 Chapter 9 of +2-Part-1, If you have any problem please comment below.

Issue of Debentures from the point of view of Redemption

You can also Check out the solved question of other Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Leave a Reply

Your email address will not be published. Required fields are marked *