Question

Mahesh Ltd. purchased Plant and Machinery from Ish Ltd. for ₹ 4,50,000. ₹ 50,000 was paid by cheque to Ish Ltd. and the balance by issuing 6% debentures of ₹ 100 each at a discount of 20%.

Pass the necessary Journal Entries for the above transactions in the books of Mahesh Ltd. 

Answer 1

Journal Entries
In the books of Mahesh Ltd.
Date	Particulars	L.F.	Amount (₹)	Amount (₹)
1.	Plant & Machinery A/c   ...Dr.		4,50,000	-
	To Ish Ltd. A/c		-	4,50,000
	(Being assets purchased)
2.	Ish Ltd. A/c   ...Dr.		4,50,000	-
	Discount on issue of debenture A/c   ...Dr.		1,00,000	-
	To Bank A/c		-	50,000
	To 6% Debentures A/c		-	5,00,000
	(Being payment made by cheque and issued 5000, 6% Debentures)