[CBSE] Q. 25 Issue of Debentures Solution TS Grewal Class 12 (2023-24)

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Solution of Question number 25 of the Issue of Debentures Chapter of TS Grewal Book 2023-24 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 (₹)
Building
Plant and Machinery
Stock
Trade Receivables
Creditors
Outstanding Expenses
20,00,000
12,00,000
4,00,000
5,00,000
2,00,000
50,000
35,00,000
8,00,000
4,00,000
4,00,000
3,00,000
1,00,000

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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