Y LTD purchased machinery for rs 90,000 Half the amount was paid in cash and the remaining half by - Accountancy - Issue and Redemption of Debentures

Question

Y LTD purchased machinery for rs 90,000 Half the amount was paid
in cash and the remaining half by the share of issue of 12%
debentures of rs 100 each at a discount of 10% Pass journal
entries

Attitude · Answer

machinery a/c dr 90,000
to vendor's a/c 90,000
vendor's a/c dr 45,000
to cash 45,000
vendor's a/c dr 45,000
discount on issue of shares a/c dr 4,500
to 12% debentures a/c 49,500

Y LTD purchased machinery for rs 90,000. Half the amount was paid in cash and the remaining half by the share of issue of 12% debentures of rs 100 each at a discount of 10%. Pass journal entries.