Delight Ltd. purchased assets worth ₹ $\displaystyle 4,00,000$ and took over liabilities of ₹ $\displaystyle 70,000$ of Marvel Ltd. for a purchase consideration of ₹ $\displaystyle 3,60$,000. Delight Ltd. paid the purchase consideration by issuing $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 20$%. Pass necessary journal entries in the hooks of Delight Ltd.

OR

Prime Ltd. took over assets of ₹ $\displaystyle 6,00,000$ and liabilities of ₹ $\displaystyle 1,00,000$ of Rabi Ltd. for a purchase consideration of ₹ $\displaystyle 3,60$,000. Prime Ltd. issued $\displaystyle 10$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% in full satisfaction of purchase consideration. Pass necessary journal entries in the books of Prime Ltd.

Books of Delight Ltd. Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) Assets A/c Dr. $\displaystyle 4,00,000$ Goodwill A/c Dr. $\displaystyle 30,000$ To Liabilities A/c $\displaystyle 70,000$ To Marvel Ltd. $\displaystyle 3,60,000$ (Assets and liabilities of Marvel Ltd. taken over) Marvel Ltd. Dr. $\displaystyle 3,60,000$ To $\displaystyle 11$% Debentures A/c $\displaystyle 3,00,000$ To Securities Premium A/c $\displaystyle 60,000$ (Issue of $\displaystyle 3,000$ debentures at a premium of $\displaystyle 20$%) Q. (b) Prime Ltd. took over assets of ₹$\displaystyle 6,00,000$… Ans. Books of Prime Ltd. Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) Assets A/c Dr. $\displaystyle 6,00,000$ To Liabilities A/c $\displaystyle 1,00,000$ To Rabi Ltd. $\displaystyle 3,60,000$ To Capital Reserve A/c $\displaystyle 1,40,000$ (Assets and liabilities of Rabi Ltd. taken over) Rabi Ltd. Dr. $\displaystyle 3,60,000$ Discount on issue of debentures A/c Dr. $\displaystyle 40,000$ To $\displaystyle 10$% Debentures A/c $\displaystyle 4,00,000$ (Issue of $\displaystyle 4,000$ debentures at a discount of $\displaystyle 10$%) .