Amalgamation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2011 sir, in amlgamation debenture of X ltd worth Rs.200000 are taken by y ltd at 10% discount What are the journal entry in the book of Y ltd.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 September 2011 Debentures have been issued to the inesters and it has to be procured from them. If new debentures issued then

Bank Dr
Discount on debentures Dr.
To Debentures a/c

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 No, I don't agree with the above entry

At the time of recognition of assets only, the liability of Debentures will be recorded at 1,80,000 mentioning that they were acquired at the discount

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 the discount amount will be adjusted in the calculation of goodwill only

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 The Discount on Debentures entry given by above expert is passed only when Y ltd is issuing the debentures of Y ltd at discount