Q. 13 DK Goel Issue of Debentures Solutions Class 12 CBSE (2024-25)

Here are the solution of question number 13 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2024-25)

A Company purchased Assets of the book value of ₹ 12,00,000 and Liabilities of ₹ 2,20,000 of another Company for a purchase consideration of ₹ 9,40,000. The purchase consideration was discharged by the issue of debentures of ₹ 500 each at a discount of 6%. Pass journal entries in the books of purchasing company. Company writes off all capital losses in the first year itself.

[Ans. Capital Reserve ₹ 40,000; Debentures issued : 2,000 Debentures of ₹ 500 each. Discount on issue ₹ 60,000; It will be written off from Statement of Profit & Loss.]

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