Y Ltd Purchased machinery Rs 55,000 from Z Ltd 10% was paid by Y Ltd by accepting - Accountancy - Issue and Redemption of Debentures

Question

Y Ltd Purchased machinery Rs 55,000 from Z Ltd 10% was paid by Y
Ltd by accepting a bill of exchange in favour of Z Ltd and the
balance was paid by issue of 9% debentures of Rs 100 each at par,
redeemable after five years Pass necessary journal entries in the
books of Y Ltd plz need the ans urgently

Pushpak Popli · Accepted Answer

Dear Student,

In the books of Y Ltd
Journal

Date
Particulars

L F
â‚¹(Dr )
â‚¹(Cr )

Machinery A/c
To Z Ltd
(Machinery purchased from Z Ltd )
Dr

55,000

Z Ltd
To Bills Payable A/c
To 9% Debentures A/c
(Issued a promissory note for 10% payment of machinery and 495, 9%
Debentures for the balance)
Dr

55,000

5,500
49,500

Regards

Date	Particulars		L.F.	₹(Dr.)	₹(Cr.)
	Machinery A/c To Z Ltd. (Machinery purchased from Z Ltd.)	Dr.		55,000	55,000
	Z Ltd. To Bills Payable A/c To 9% Debentures A/c (Issued a promissory note for 10% payment of machinery and 495, 9% Debentures for the balance)	Dr.		55,000	5,500 49,500