Question

D Ltd. purchased machinery worth Rs. 2,00,000 from E Ltd. on 1.4.2016. Rs. 50,000 were paid immediately, and the balance was paid by the issue of Rs. 1,60,000, 12% Debentures in D Ltd. Record the necessary journal entries for recording the transactions in the books of D Ltd.

Answer 1

Journal Entries In the Books of D Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2016
Apr 01	Machinery A/c   ...Dr.		2,00,000	-
	To E Ltd. A/c		-	2,00,000
	(Being machinery purchased from E Ltd.)
Apr 01	E Ltd. A/c   ...Dr.		50,000	-
	To Bank A/c		-	50,000
	(Being immediate payment made to E Ltd.)
Apr 01	E Ltd. A/c   ...Dr.		1,50,000	-
	Discount on Issue of Debentures A/c   ...Dr.		10,000	-
	To 12% Debentures A/c		-	1,60,000
	(Being Rs. 1,60,000 face value 12% debentures issued to clear the remaining balance at a discount of Rs. 10,000)