Answer:
(i) JOURNAL
Working Note Number of Shares Issued\[=\frac{Amount\,Due}{Issue\,\Pr ice}\] \[=\frac{4,00,000}{100}=4,000\,Debentures\] (ii) Value shown by the company is sharing. By issuing debentures, the company has promised to share its future profits as interest with the vendors. Date Particulars LF Amt (Dr) Amt (Cr) Sundry Assets A/c Dr 5,00,000 To Shri Ram Ltd 5,00,000 (Being purchase of the business of new company) Shri Ram Ltd Dr 5,00,000 To Bank A/c 1,00,000 To 7% Debentures A/c \[\left( 4,000\times 100 \right)\] 4,00,000 (Being payment to Shri Ram Ltd by issue of 4,000 debentures of Rs.100 each and Rs. 1,00,000 in cash)
You need to login to perform this action.
You will be redirected in
3 sec