[ISC] Q. 42 Issue of Debentures solution TS Grewal Class 12 (2023-24)

Solution of Question number 42 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2023-24 session?

Chrome Ltd. took over assets of ₹ 6,00,000 and liabilities of ₹ 40,000 of Polymer Ltd. at an agreed value of ₹ 6,30,000. Chrome Ltd. issued 10% Debentures of ₹ 100 each at a discount of 10% to Polymer Ltd. in full satisfaction of the price. Chrome Ltd. writes off any capital losses incurred during a year, at the end of that financial year.

You are required to pass the necessary Journal entries to record the above transactions in the books of Chrome Ltd.

Solution:-