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Question
M.Ltd. took over assets of Rs 9,00,00,000 and liabilities of Rs 70,00,000 of S.Ltd. and issued 8%Debenture of Rs 100 each. Record necessary entries in the books of M. Ltd.
Solution
Books of M. Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
|
Sundry Assets |
Dr. |
|
9,00,00,000 |
|
||
|
|
|
To Sundry Liabilities A/c |
|
|
70,00,000 |
||
|
|
|
To S.Ltd. |
|
|
8,30,00,000 |
||
|
|
(Assets and liabilities of S. Ltd. taken over) |
|
|
|
|||
|
|
S. Ltd. |
Dr. |
|
8,30,00,000 |
|
||
|
|
|
To 8% Debenture A/c |
|
|
8,30,00,000 |
||
|
|
(8,30,000 8% debentures @ 100 each issued to S Ltd. in consideration of assets and liabilities) |
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