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Reliance company assets rupees 500000 and took over liabilities of rupee 90000 agreed value of rupees 380000 Reliance company issued debentures of rupee 100 each at 5% discount in full satisfaction of the purchase price.Give journal entries?
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Reliance company assets rupees 500000 and took over liabilities of rup...
Journal Entries:
1. To record the purchase of assets and liabilities:
- Dr. Assets Account Rs. 500,000
- Cr. Liabilities Account Rs. 90,000
- Cr. Vendor Account (Purchase Price) Rs. 380,000
2. To record the issue of debentures:
- Dr. Vendor Account (Purchase Price) Rs. 380,000
- Cr. Debenture Account Rs. 380,000
3. To record the discount on debentures:
- Dr. Debenture Account Rs. 19,000
- Cr. Discount on Issue of Debentures Rs. 19,000
Explanation:
Reliance company acquired assets worth Rs. 500,000 and took over liabilities worth Rs. 90,000. The agreed value of the purchase was Rs. 380,000. To satisfy the purchase price, Reliance company issued debentures of Rs. 100 each at a 5% discount.
The first journal entry records the acquisition of assets and liabilities. The assets account is debited for Rs. 500,000, and the liabilities account is credited for Rs. 90,000. The difference of Rs. 410,000 is credited to the vendor account as the purchase price.
The second journal entry records the issuance of debentures. The vendor account is debited for Rs. 380,000, and the debenture account is credited for the same amount.
The third journal entry records the discount on the issue of debentures. The debenture account is debited for Rs. 19,000, and the discount on issue of debentures account is credited for the same amount.
In summary, the purchase of assets and liabilities is recorded, along with the issuance of debentures to satisfy the purchase price. The discount on the issue of debentures is also recorded.
1. To record the purchase of assets and liabilities:
- Dr. Assets Account Rs. 500,000
- Cr. Liabilities Account Rs. 90,000
- Cr. Vendor Account (Purchase Price) Rs. 380,000
2. To record the issue of debentures:
- Dr. Vendor Account (Purchase Price) Rs. 380,000
- Cr. Debenture Account Rs. 380,000
3. To record the discount on debentures:
- Dr. Debenture Account Rs. 19,000
- Cr. Discount on Issue of Debentures Rs. 19,000
Explanation:
Reliance company acquired assets worth Rs. 500,000 and took over liabilities worth Rs. 90,000. The agreed value of the purchase was Rs. 380,000. To satisfy the purchase price, Reliance company issued debentures of Rs. 100 each at a 5% discount.
The first journal entry records the acquisition of assets and liabilities. The assets account is debited for Rs. 500,000, and the liabilities account is credited for Rs. 90,000. The difference of Rs. 410,000 is credited to the vendor account as the purchase price.
The second journal entry records the issuance of debentures. The vendor account is debited for Rs. 380,000, and the debenture account is credited for the same amount.
The third journal entry records the discount on the issue of debentures. The debenture account is debited for Rs. 19,000, and the discount on issue of debentures account is credited for the same amount.
In summary, the purchase of assets and liabilities is recorded, along with the issuance of debentures to satisfy the purchase price. The discount on the issue of debentures is also recorded.
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Reliance company assets rupees 500000 and took over liabilities of rup...
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Reliance company assets rupees 500000 and took over liabilities of rupee 90000 agreed value of rupees 380000 Reliance company issued debentures of rupee 100 each at 5% discount in full satisfaction of the purchase price.Give journal entries?
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Reliance company assets rupees 500000 and took over liabilities of rupee 90000 agreed value of rupees 380000 Reliance company issued debentures of rupee 100 each at 5% discount in full satisfaction of the purchase price.Give journal entries? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Reliance company assets rupees 500000 and took over liabilities of rupee 90000 agreed value of rupees 380000 Reliance company issued debentures of rupee 100 each at 5% discount in full satisfaction of the purchase price.Give journal entries? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Reliance company assets rupees 500000 and took over liabilities of rupee 90000 agreed value of rupees 380000 Reliance company issued debentures of rupee 100 each at 5% discount in full satisfaction of the purchase price.Give journal entries?.
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