question_answer

Ronak Ltd took over the assets amounting to Rs. 3,44,000 and liabilities of Rs. 88,800 of Paras Ltd at an agreed value of ? 2 55,200. The purchase price was discharged by issuing 8% debentures of Rs. 100 each at a premium of 10%. Give journal entries in the books of Ronak Ltd.

Answer:

Number of debentures issued = 2,320 debentures