Question

Ajanta Ltd. purchased machinery worth ₹ 36,00,000 from Sujata Ltd. Ajanta Ltd. paid half the amount to Sujata Ltd. through a bank draft and the balance by issuing 8% debentures of ₹ 100 each at a discount of 10%. Pass the necessary journal entries in the books of Ajanta Ltd. for the above transactions.

Answer 1

Journal
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
	Machinery A/c    ...Dr.		36,00,000	-
	To Sujata Ltd.		-	36,00,000
	(Being machinery bought from Sujata Ltd.)
	Sujata Ltd.     ...Dr.		36,00,000	-
	Discount on Issue of Debentures A/c    ...Dr.		2,00,000	-
	To Bank A/c		-	18,00,000
	To 8% Debentures A/c		-	20,00,000
	(Being 20,000, 8% Debentures issued at 10% discount to Sujata Ltd. against purchase consideration of ₹ 18,00,000.)

Working Note:

Calculation of Number of Debentures Issued:

`(18,00,000)/90`

= 20,000 debentures

(Debentures issued at ₹ 90 each, including a 10% discount on face value of ₹ 100.)