Exe. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over theliabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs. 100 each.What Journal entries will be made in the following three cases if debentures are issued.(a) at par(b) at a discount of 10%(c) at a premium of 10%?It was agreed that any fraction of debentures be paid in cash.
Exe. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over theliabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs. 100 each.What Journal entries will be made in the following three cases if debentures are issued.(a) at par(b) at a discount of 10%(c) at a premium of 10%?It was agreed that any fraction of debentures be paid in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exe. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the
liabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs. 100 each.
What
(a) at par
(b) at a discount of 10%
(c) at a premium of 10%?
It was agreed that any fraction of debentures be paid in cash.
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