Solve this :

Illustration 15. Lemon Tree Ltd., purchased a piece of land from JSS Ltd., and paid the consideration as follows :

(i)    Issued a cheque for Rs. 10,00,000 ;
(ii)   Issued a Bill of Exchange for 3 months for Rs. 5,00,000 ;
(iii)  Issued 5,000; 9% Debentures of Rs. 100 each at par redeemable at 10% premium after 5 years Pass the journey entry.

Dear Student,

(i)Land A/c          Dr.            20,00,000
        To JSS ltd A/c                                             20,00,000
(Being land is purchased from JSS ltd)

(ii)JSS ltd A/c      Dr.            20,00,000
     Loss on redemption of debentures A/c        Dr.      50,000
             To Bank A/c                                                    10,00,000 
             To Bills payable A/c                                          5,00,000
             To 9% Debentures A/c                                       5,00,000
             To Premium on redemption of debentures A/c     50,000
(Being payment made to JSS Ltd )



Regards