Q. 20 solution of Issue of Debentures Chapter TS Grewal Book Class 12 2021-22

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Solution of Question number 20 of the Issue of Debentures Chapter of TS Grewal Book 2021-22 Edition for the 2021-22 session?

Rama Ltd took over the following assets and liabilities of Krishna Ltd. on 1st 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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