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प्रश्न
Jiva Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Jiva Ltd., if:
Case 1. The debentures are issued at par.
Case 2. The debentures are issued at 20% premium.
Case 3. The debentures are issued at 10% discount.
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उत्तर
| Journal Entries in the Books of Jiva Ltd |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| Common Entry for All Cases | ||||
| 1. | Sundry Assets A/c ...Dr. | 6,60,000 | ||
| Goodwill A/c ...Dr. | 20,000 | |||
| To Sundry Liabilities A/c | 80,000 | |||
| To Star Ltd. | 6,00,000 | |||
| (Being assets and liabilities of Star Ltd. taken over) | ||||
| Cash Payment in All Cases | ||||
| 2. | Star Ltd. ...Dr. | 60,000 | ||
| To Cash/Bank A/c | 60,000 | |||
| (Being 10% of purchase consideration paid in cash) | ||||
| Case 1: Debentures issued at par | ||||
| 3. | Star Ltd. ...Dr. | 5,40,000 | ||
| To 12% Debentures A/c | 5,40,000 | |||
| (Being balance purchase consideration discharged by issue of 5,400, 12% Debentures of ₹ 100 each at par) | ||||
| Case 2: Debentures issued at 20% premium | ||||
| 4. | Star Ltd. ...Dr. | 5,40,000 | ||
| To 12% Debentures A/c | 4,50,000 | |||
| To Securities Premium A/c | 90,000 | |||
| (Being balance purchase consideration discharged by issue of 4,500, 12% Debentures of ₹ 100 each at 20% premium) | ||||
| Case 3: Debentures issued at 10% discount | ||||
| 5. | Star Ltd. ...Dr. | 5,40,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 60,000 | |||
| To 12% Debentures A/c | 6,00,000 | |||
| (Being balance purchase consideration discharged by issue of 6,000, 12% Debentures of ₹ 100 each at 10% discount) | ||||
Working note:
1. Purchase Consideration:
₹ 6,00,000
2. Net Assets Taken Over:
₹ 6,60,000 − ₹ 80,000 = ₹ 5,80,000
3. Goodwill:
₹ 6,00,000 − ₹ 5,80,000 = ₹ 20,000
4. Cash Payment:
₹ 6,00,000 × 10% = ₹ 60,000
5. Balance Payable by Debentures:
₹ 6,00,000 − ₹ 60,000 = ₹ 5,40,000
Case 1: Debentures issued at par
No. of Debentures = `(5,40,000)/100 = 5,400`
Case 2: Debentures issued at 20% premium
Issue Price = ₹ 100 + 20% = ₹ 120
No. of Debentures = `(5,40,000)/120 = 4,500`
Securities Premium = 4,500 × ₹ 20 = ₹ 90,000
Case 3: Debentures issued at 10% discount
Issue Price = ₹ 100 − 10% = ₹ 90
No. of Debentures = `(5,40,000)/90 = 6,000`
Discount on Issue = 6,000 × ₹ 10 = ₹ 60,000
