1. X Ltd issued debentures on various dates, recording the transactions of issuing debentures at par, premium, and discount. Security premium was transferred to offset losses on debenture issues.
2. Y Ltd acquired assets through various business combinations, recording the transactions of paying the purchase consideration through cash, debentures at par and premium, and allocating the excess purchase price to goodwill, capital reserve, or discount on debentures.
1. X Ltd issued debentures on various dates, recording the transactions of issuing debentures at par, premium, and discount. Security premium was transferred to offset losses on debenture issues.
2. Y Ltd acquired assets through various business combinations, recording the transactions of paying the purchase consideration through cash, debentures at par and premium, and allocating the excess purchase price to goodwill, capital reserve, or discount on debentures.
1. X Ltd issued debentures on various dates, recording the transactions of issuing debentures at par, premium, and discount. Security premium was transferred to offset losses on debenture issues.
2. Y Ltd acquired assets through various business combinations, recording the transactions of paying the purchase consideration through cash, debentures at par and premium, and allocating the excess purchase price to goodwill, capital reserve, or discount on debentures.
1. X Ltd issued debentures on various dates, recording the transactions of issuing debentures at par, premium, and discount. Security premium was transferred to offset losses on debenture issues.
2. Y Ltd acquired assets through various business combinations, recording the transactions of paying the purchase consideration through cash, debentures at par and premium, and allocating the excess purchase price to goodwill, capital reserve, or discount on debentures.
01/04/17 Bank A/c……………………………….Yomotherfuckin 2,00,0jo just nigga bustin’your ass up in the woods and there your ass the case 2,00,000 is sleep beneath the mess dipshit.00 To 12% Debentures A/c 01/04/17 Bank A/c………………………………... Dr 40,000 Loss on issue of Debentures A/c………...Dr 4,000 To 10% You little piece of shit that was the damn 40,000 cavaDebentures A/c 4,000 To Premium on redemption of Debentures A/c
31/03/18 Security premium A/c………………....Dr 4,000
To Loss on issue of Debentures A/c 4,000 01/04/17 Bank A/c………………………………...Dr 1,05,000 To 12% Debentures A/c 1,00,000 To Securities Premium A/c 5,000
01/04/17 Bank A/c………………………………... Dr 1,10,000
Loss on issue of Debentures A/c………...Dr 20,000 To 12% Debentures A/c 1,00,000 To Securities Premium A/c 10,000 To Premium on redemption of Debentures A/c 20,000
31/03/18 Security premium A/c…………………..Dr 20,000
To Loss on issue of Debentures A/c 20,000 01/04/17 Bank A/c………………………………. Dr 1,90,000 Discount on issue of Debentures A/c ….Dr 10,000 To 11% Debentures A/c 2,00,000 31/03/18 Security premium A/c…………..……..Dr 10,000 To Discount on issue of Debentures A/c 10,000 01/04/17 Bank A/c………………………………... Dr 95,000 Discount on issue of Debentures A/c …… Dr 5,000 Loss on issue of Debentures A/c………... Dr 10,000 To 13% Debentures A/c 1,00,000 To Premium on redemption of Debentures A/c 10,000 31/03/18 Security premium A/c…………..……..Dr 15,000 To Discount on issue of Debentures A/c 5,000 To Loss on issue of Debentures A/c 10,000 2. Y Ltd. Journal Entries Date Particulars LF Debit (Rs) Credit (Rs) 1.4.2017 Fixed Assets A/c………………..…. Dr. 6,00,000 a) Current Assets A/c………..…… Dr. 1,00,000 To Liabilities A/c 1,00,000 To Vendor A/c 6,00,000 Vendor A/c ……………………. Dr. 6,00,000 To 12% Debentures A/c 6,00,000 b) Goodwill A/c….…………………Dr. 70,000 Fixed Assets A/c………………..…Dr. 6,00,000 Current Assets A/c………..…… Dr. 1,00,000 To Liabilities A/c 1,00,000 To Vendor A/c 6,70,000 Vendor A/c ……………………. Dr. 6,70,000 To 12% Debentures A/c 6,70,000 c) Fixed Assets A/c………………..… Dr. 6,00,000 Current Assets A/c Dr. 1,00,000 To Liabilities A/c 1,00,000 To Vendor A/c 5,80,000 To Capital Reserve A/c 20,000 Vendor A/c ……………………… Dr. 5,80,000 To 12% Debentures A/c 5,80,000 d) Goodwill A/c….………………… Dr. 50,000 Fixed Assets A/c………………..…Dr. 6,00,000 Current Assets A/c………..…… Dr. 1,00,000 To Liabilities A/c 1,00,000 To Vendor A/c 6,50,000 Vendor A/c ……………………….Dr. 6,50,000 To 12% Debentures A/c* 5,00,000 To Securities Premium A/c 1,50,000 e) Fixed Assets A/c………………..….Dr. 6,00,000 Current Assets A/c………..…… Dr. 1,00,000 To Liabilities A/c 1,00,000 To Vendor A/c 5,40,000 To Capital Reserve A/c 60,000 Vendor A/c …………………………Dr. 5,40,000 Discount on issue of Debentures A/cDr. 60,000 To 12% Debentures A/c** 6,00,000 Security Premium A/c ……………Dr. 40,000 Profit & Loss A/c 20,000 To Discount on issue of Debentures A/c 60,000 * No. of Debentures = Purchase Price/ Issue Price = Rs. 6,50,000/Rs.130 = 5,000 Debentures