Question

A company purchased assets of the value of Rs.1,90,000 from another company and agreed to make the payment of purchase consideration by issuing 2,000, 10% debentures of Rs. 100 each at a discount of 5%. Record necessary journal entries.

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Assets A/c   ...Dr.		1,90,000	-
	To Vendor A/c		-	1,90,000
	(Being assets purchased worth ₹ 1,90,000)
2.	Vendor A/c   ...Dr.		1,90,000	-
	Discount A/c   ...Dr.		10,000	-
	To 10% Debentures A/c		-	2,00,000
	(Bering issue of 2,000 debentures of ₹ 100 each at a discount of 5%)