Roman Limited acquired Assets of 2000000 and took over creditors of 200000 from Kapil Enterprises Roman Limited issued 8% picture - Accountancy - Issue of Debentures

Question

Roman Limited acquired Assets of 2000000 and took over creditors of
200000 from Kapil Enterprises Roman Limited issued 8% picture of
rupees hundred each at discount of 10% as per is consideration
record necessary Genral entries in books of Romi Ltd mam please
explain this question by voice recorder

Shruti Mishra · Accepted Answer

Solution :-

Books of Romi Ltd
JOURNAL

S No
Particulars
L F
Debit
Credit

1)
Assets A/c Dr

20,00,000

To Creditors A/c

2,00,000

To Kapil Enterprises A/c

18,00,000

(Being Business taken over )

2)
Kapil Enterprises A/c Dr

18,00,000

Discount on Issue of Debentures Dr [20,000 x 10]

2,00,000

To 8% Debentures A/c [20,000 x 100]

20,00,000

(Being Settlement made )

Working Notes:-
Number of Debentures to be issued = Purchase Consideration / Issue
Price
= 18,00,000 / 90 (100 - 10)
= 20,000

S.No.	Particulars	L.F	Debit	Credit
1)	Assets A/c Dr.		20,00,000
	To Creditors A/c			2,00,000
	To Kapil Enterprises A/c			18,00,000
	(Being Business taken over.)

2)	Kapil Enterprises A/c Dr.		18,00,000
	Discount on Issue of Debentures Dr. [20,000 x 10]		2,00,000
	To 8% Debentures A/c [20,000 x 100]			20,00,000
	(Being Settlement made.)