Rohit (CA-Final) (1485 Points)
16 September 2012Balance Sheet of X Ltd. [Extract] as at 31.03.2012
| Liabilities | Rs. |
| 12% Debentures | 1,00,000 |
Adjustment :-
The issue of such an amount of fully paid 14% debentures in Y Ltd. at 96% as is sufficient to discharge 12% Debentures in X Ltd. at a Premium of 20% .
What should be the Treatment and Journal Entry ???
[ Source : CA. Dr. PC Tulsian CA IPCC Groupt 1 Accounting Book (2012) , Chapter 5 Amalgamtion Illustration no.5 point no. (c), pg no. 5.22 ]
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 17 September 2012
12% Debenture A/c ... Dr 1,00,000
Premium on redemption on Debenture A/c....Dr. 20,000
DIscount on issue of 14% Debenture A/c ..... Dr. 5,000
To 14% Debenture A/c 1,25,000
above premium & discount entry shall be shown under the head of Misc. Exp. at assets side in B/S.
CAclubindia
