Question

Tushar Ltd. purchased assets of ₹ 14,40,000 and liabilities of ₹ 2,55,000 from Chander Ltd. on 1.4.2025. ₹ 2,40,000 were paid immediately. Pass journal entries in the books of Tushar Ltd. if the balance was paid as follows:

Case (i) by issue of ₹ 9,00,000, 11 % debentures in Tushar Ltd. 

Case (ii) by issue of ₹ 10,50,000, 12% debentures in Tushar Ltd.

Answer 1

Case (i):

In the books of Tushar Ltd.
Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Sundry Assets A/c   ...Dr.		14,40,000	-
	To Sundry Liabilities A/c		-	2,55,000
	To Chander Ltd. A/c		-	11,85,000
	(Being business purchased.)
2.	Chander Ltd. A/c   ...Dr.		2,40,000	-
	To Bank A/c		-	2,40,000
	(Being part payment made.)
3.	Chander Ltd. A/c   ...Dr.		9,45,000	-
	To 11% Debentures A/c		-	9,00,000
	To Securities Premium A/c		-	45,000
	(Being 9000 11% Debentures issued @ ₹5 each at premium.)

Case (ii):

In the books of Tushar Ltd.
Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Sundry Assets A/c   ...Dr.		14,40,000	-
	To Sundry Liabilities A/c		-	2,55,000
	To Chander Ltd. A/c		-	11,85,000
	(Being business purchased.)
2.	Chander Ltd. A/c   ...Dr.		2,40,000	-
	To Bank A/c		-	2,40,000
	(Being part payment made.)
3.	Chander Ltd. A/c   ...Dr.		9,45,000	-
	Discount on Issue of Debentures A/c   ...Dr.		1,05,000	-
	To 11% Debentures A/c		-	10,50,000
	(Being 10,500 11% Debentures of ₹100 each at discount of ₹10.)
4.	Statement of Profit & Loss A/c   ...Dr.		1,05,000	-
	To Discount on Issue of Debentures A/c		-	1,05,000
	(Being discount on issue of debentures written off.)