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Newton Ltd. Purchased a Machinery from B for ​₹ 5,76,000 to Be Paid by the Issue of 9% Debentures of ​₹ 100 Each at 4% Discount. Journalise the Trasactions. - Accountancy

Journal Entry

Newton Ltd. purchased a Machinery from B for ​₹  5,76,000 to be paid by the issue of 9% Debentures of ​₹  100 each at 4% discount. Journalise the trasactions.

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Solution

Books of Newton Ltd.
Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Machinery A/c

Dr.

 

5,76,000

 

 

To B

 

 

5,76,000

 

(Machinery purchased from B)

 

 

 

 

 

 

 

 

 

B

Dr.

 

5,76,000

 

 

Discount on Issue of Debenture A/c

Dr.

 

24,000

 

 

To 9% Debenture A/c

 

 

6,00,000

 

(Issued 6,000 debentures at 4% discount)

 

 

 

Working Note

No.of. debentures to be issued=

`"Purchase Consideration" / "Issue Price" = 576000/ (100 - 4) = 576000/96 = 6000 "debetures"`

  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 2 Issue of Debentures
Exercise | Q 15 | Page 53
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