[ISC] Q. 10 solution of Issue of Debentures TS Grewal Class 12 (2022-23)

Solution of Question number 10 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2022-23 session?

Hi-tech Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Low-tech Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Hi-tech Ltd., assuming that:

Case (a): The debentures are issued at par.

Case (b): The debentures are issued at 20% premium

Case (c): The debentures are issued at 10% discount.

Solution:-