Exe Ltd. purchased assts of the book value ₹ 4,00,000 and took over the liabiliteis of ₹ 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each. Pass Journal entries if debentures are issued: (a) at par, (b) at a discount of 10% and (c) at a premium of 10%. It was agreed that any fraction of debentures be paid in cash.
Solutions :
