Question 25 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 25 Chapter 9 of +2-A

Table of Contents

The solution of Question 25 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)

25. Wellbeing Ltd. took over assets of Rs 9,80,000 and liabilities of Rs 40,000 of HDR Ltd. at an agreed value of 􀀀 9,00,000. Wellbeing Ltd. paid to HDR Ltd. by the issue of 9% Debentures of Rs 100 each at a premium of 20%. Pass necessary Journal entries to record the above transactions in the books of Wellbeing Ltd.

The solution of Question 25 Chapter 9 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Sundry Assets A/c	Dr		9,80,000
	To Sundry Liabilities A/c				40,000
	To HDR Ltd. A/c				9,00,000
	To Capital Reserve A/c				40,000
	(Being assets and liabilities purchased from Strong Ltd.. )
	HDR . Ltd. A/c	Dr		9,00,000
	To 9%Debenture A/c				7,50,000
	To Securities Premium A/c				1,50,000
	(Being debenture issued )