Harsh Ltd. purchased assets of the book value of Rs.1,98,000 from Garv Ltd. It was agreed that purchase consideration be paid by issuing 16% debentures of Rs. 100 each at a discount of 10%. The number of debentures issued and journal entry for the same would be:

Question

Accepted Answer

Number of debentures issued = 2,200 | Date | Particulars | L.F. | Dr. Amount | Cr. Amount | |---|---|---|---|---| | | Garv Ltd Dr. | | 1,98,000 | | | | Discount on Issue of Debenture A/c Dr. | | 22,000 | | | | To 16% Debentures A/c | | | 2,20,000 | | | (Issue of 2200 debentures of Rs. 100 issued at discount of 10% to Garv Ltd ) | | | |

Answer

Number of debentures issued = 1980 | Date | Particulars | L.F. | Dr. Amount | Cr. Amount | |---|---|---|---|---| | | Garv Ltd Dr. | | 1,76,000 | | | | Discount on Issue of Debenture A/c Dr. | | 22,000 | | | | To 16% Debentures A/c | | | 1,98,000 | | | (Issue of 1980 debenture of Rs. 100 issued at discount of 10% to Garv Ltd ) | | | |

Answer

Number of debentures issued = 2000 | Date | Particulars | L.F. | Dr. Amount | Cr. Amount | |---|---|---|---|---| | | Garv Ltd Dr. | | 1,78,000 | | | | Discount on Issue of Debenture A/c Dr. | | 22,000 | | | | To 16% Debentures A/c | | | 2,00,000 | | | (Issue of 2000 debenture of Rs. 100 issued at discount of 10% to Garv Ltd ) | | | |

Answer

Number of debentures issued = 2200 | Date | Particulars | L.F. | Dr. Amount | Cr. Amount | |---|---|---|---|---| | | Garv Ltd | | 2,00,000 | | | | Discount on Issue of Debenture A/c Dr. | | 20,000 | | | | To 16% Debentures A/c | | | 2,20,000 | | | (Issue of 2200 debenture of Rs. 100 issued at discount of 10% to Garv Ltd ) | | | |

List-I	List-II
(A) Unregistered Debentures	(I) Perpetual Debentures
(B) Unsecured Debentures	(II) Naked Debentures
(C) Secured Debentures	(III) Bearer Debentures
(D) Irredeemable Debentures	(IV) Mortgage Debentures

List-I	List-II
(Particulars)	(Treatment)
(A) Issue of debentures as collateral security	(I) Vendor Account will be credited
(B) Issue of debenture to Public	(II) Debenture Suspense Account will be debited
(C) Issue of debentures to vendor for purchase of an Asset	(III) Statement of Profit and Loss will be debited
(D) Writting off Discount/Loss on Issue of Debentures	(IV) Bank Account will be debited

Particulars	Dr. Amount	Cr. Amount
Garv Ltd Dr.	1,76,000
Discount on Issue of Debenture A/c Dr.	22,000
To 16% Debentures A/c		1,98,000
(Issue of 1980 debenture of Rs. 100 issued at discount of 10% to Garv Ltd )

Particulars	Dr. Amount	Cr. Amount
Garv Ltd Dr.	1,78,000
Discount on Issue of Debenture A/c Dr.	22,000
To 16% Debentures A/c		2,00,000
(Issue of 2000 debenture of Rs. 100 issued at discount of 10% to Garv Ltd )

Particulars	Dr. Amount	Cr. Amount
Garv Ltd	2,00,000
Discount on Issue of Debenture A/c Dr.	20,000
To 16% Debentures A/c		2,20,000
(Issue of 2200 debenture of Rs. 100 issued at discount of 10% to Garv Ltd )

Harsh Ltd. purchased assets of the book value of Rs.1,98,000 from Garv Ltd. It was agreed that purchase consideration be paid by issuing 16% debentures of Rs. 100 each at a discount of 10%. The number of debentures issued and journal entry for the same would be:

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