Please solve the question Question No 14 (a) Axx Ltd issued 450, 10% debentures of - Accountancy - Issue and Redemption of Debentures

Question

Please solve the question

Question No 14

(a) Axx Ltd issued 450, 10% debentures of Rs 100 each at a premium
of 15% on January 01, 2011 with a term redeemable at premium of 25%
after four years At the end of the second year, 150 debentures were
redeemed Pass the necessary Journal entries in the books of the
company regarding interest on debentures and redemption of
debentures for the period January 2011 to December 2012 assuming
that there is sufficient balance in the DRR

(b) Ritik Ltd purchased the following assets and liabilities of
Zara Ltd for a purchase consideration of
Rs 12,00,000

Nitin Verma · Accepted Answer

Dear Student,
Q 14(b)

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Plant and Machinery A/c
Dr

6,50,000

Debtors A/c
Dr

2,35,000

Stock A/c
Dr

1,50,000

Building A/c
Dr

7,65,000

To Creditors A/c

2,75,000

To Vendor A/c

12,00,000

To Capital Reserve A/c

3,25,000

(Business took over)

Note: Please do clearly mention which part you want to get
answered

Regards

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Plant and Machinery A/c	Dr		6,50,000
	Debtors A/c	Dr		2,35,000
	Stock A/c	Dr		1,50,000
	Building A/c	Dr		7,65,000
	To Creditors A/c				2,75,000
	To Vendor A/c				12,00,000
	To Capital Reserve A/c				3,25,000
	(Business took over)