Question 24 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 24 Chapter 9 of +2-A

Question 24 Chapter 9 of +2-A

24. Green Ltd. purchased the assets of Strong Ltd. for 􀀀 40,00,000 and took over liabilities of 7,00,000 at an agreed value of 􀀀 32,40,000. The payment was made by issuing 10% Debentures of 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd…

The solution of Question 24 Chapter 9 of +2-A: – 

     
DateParticulars
L.F.DebitCredit
 Sundry Assets A/cDr 40,00,000 
 To Sundry Liabilities A/c   7,00,000
 To Strong Ltd. A/c   32,40,000
 To Capital Reserve A/c   60,000
 (Being assets and liabilities purchased from Strong Ltd.. )    
 Strong . Ltd. A/cDr 32,40,000 
 Discount on Issue of Debenture. A/cDr 3,60,000 
 To 9%Debenture A/c   36,00,000
 (Being debenture issued )    

Working Note

 

No of Debenture to be issued =Purchase consideration=32,40,000=36,0000 debentures
Issue price90

 

 


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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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