[CBSE] Q. 22 Issue of Debentures Solution TS Grewal Class 12 (2023-24)

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Solution of Question number 22 of the Issue of Debentures Chapter of TS Grewal Book 2023-24 CBSE Board?

Rama Ltd. took over following assets and liabilities of Krishna Ltd. on 1s April, 2019:

Land and Building₹ 50,00,000
Furniture₹ 10,00,000
Stock₹ 5,00,000
Creditors₹ 7,00,000

The purchase consideration of ₹ 60,00,000 was paid by issuing 12% Debentures of ₹ 100 each at a premium of 20%.

Pass the necessary Journal entries for the above in the books of Rama Ltd.

[Ans.: Goodwill – ₹ 2,00,000; No. of Debentures to be issued – 50,000.]

Solution:-

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