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: – 

         
Date Particulars
L.F. Debit Credit
  Sundry Assets A/c Dr   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/c Dr   32,40,000  
  Discount on Issue of Debenture. A/c Dr   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 price 90

 

 


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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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

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

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