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Question 9. X Company purchased assets of the book, value pf Rs. 10,45,000 from Y Co. It was agreed that the, purchase consideration be paid by issuing 14%, Debentures of Rs. 100 each. Assume debentures have, been issued (i) at par, (ii) at a discount of 5%, and (iii) ata, premium of 10%., , Give necessary journal entries in the books of X, Company., , Solution 9, , JOURNAL OF X LTD., Particular See esis Amount, , ‘ae (Cr.), Sundry Assets A/c : 10,45,000, To Vendors’ A/c 10,45,000, (Being Assets Purchased), Vendors’ A/c : 10,45,000, To 14% Debentures A/c 10,45,000, (Being Issue of 10,450 debentures of Rs. 100, each at par), Vendors’ A/c . 10,45,000, Discountin Issue of Debentures A/c ; 55,000, To 14% Debentures A/c 11,00,000, Being Issue of debentures @ 5%), Vendors’ A/c ; 10,45,000, To 14% Debentures A/c § 50,000, To Securities Premium Reserve A/c 95,000, Being Issue of debentures @, , , , Working note:, , 0,45,000, (1) 11,000 debentures of Rs. 100 each at 5% discount calculated as follows: =, , , , = 11,000 Debentures., , 10,45,000, , , , (2) 9,500 debentures of Rs. 100 each at 10% premium, calculated as follows: = 9,500 Debentures

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Question 11. Sudhir Ltd. Took over Assets of Rs., 8,50,000 and Liabilities of Rs. 1,50,000 of Gopal Ltd. At, an agreed price pf Rs. 7,20,000. The purchase, consideration was discharged by issuing 12 % debenture, Rs. 100 each at premium of 20 %. Give journal entries in, the books of Sudhir Itd., , Solution 11, , , , JOURNAL OF GOLDEN LTD., Particular ee ie ae ile tial, , (Dr.) (Cr.), , Sundry Assets A/c : 8,50,000, , Goodwill A/c : 20,000, To Sundry Liabilities A/c 1,50,000, To Gopal Ltd. 7,20,000, , (Being Assets and Liabilities Purchase), , Gopal Ltd.’s A/c : 7,20,000, To 12% Debentures A/c 6,00,000, To Securities Premium Reserve A/c 1,20,000, (Being Issue of 6,000 Debentures of Rs. 100 each, at 20 % premium)

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Question 18. Star textiles Itd. Purchased assets of, Modern textiles Ltd. As under;, , Land and Buildings of Rs. 25,00,000 at Rs. 40,00,000;, Plant and Machinery of Rs. 10,00,000 for Rs. 7,50,000, and Furniture od Rs. 3,00,000 for Rs. 1,00,000 for, purchase consideration of Rs. 45,00,000. Star Textiles, Ltd. Paid Rs. 3,00,000 in Cash and Remaining by issue of, 9% Debentures of Rs. 500 each at a premium of 5%., record necessary entries in the books of Star Textiles Ltd., , Solution 18, , JOURNAL OF STAR TEXTILES LTD., Particular | ee Vise t isi Amount, , , , ha (en, Land and Building A/c Dr. 40,00,000, , Plant and Machinery A/c Dr. 7,50,000, , Furniture A/c Dr. 1,00,000, To Capital Reserve A/c 3,50,000, To Modern Textiles Ltd. 45,00,000, , (Being Purchase of Assets from Modern, Textiles itd.), Modern Textiles Ltd. Dr. 3,00,000, To Bank A/c 30,00,000, (Being Part Amount paid in cash), Modern Textiles Ltd. Dr. 42,00,000, To 9% Debentures A/c 40,00,000, To Securities premium Reserve A/c 2,00,000, , (Being Issue of 8,000 Debentures of Rs. 500, each at 5% premium)