[CBSE] Q. 26 Issue of Debentures Solution TS Grewal Class 12 (2025-26)

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Solution of Question number 26 of the Issue of Debentures Chapter of TS Grewal Book (2025-26) CBSE Board

Neeraj Ltd. took over business of Ajay Enterprises on 1-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are:

ParticularsBook Value (₹)Agreed Value (₹)
Building20,00,00035,00,000
Plant and Machinery12,00,0008,00,000
Stock4,00,0004,00,000
Trade Receivables5,00,0004,00,000
Creditors2,00,0003,00,000
Outstanding Expenses50,0001,00,000

It was decided to pay for purchase consideration as ₹ 7,00,000 through Cheque and balance by issue of 2,00,000, 9% Debentures of ₹ 20 each at a premium of 25%. Journalise.

[Ans.: Goodwill – ₹ 10,00,000.]

Solution:-

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