Kiara Ltd. purchased assets worth $\displaystyle 12,40,000$ and took over liabilities of $\displaystyle 3,40,000$ of Amrex Ltd. for a purchase consideration of ₹ $\displaystyle 11,00$,000. Kiara Ltd. paid half the amount by cheque. The balance amount was settled by issuing $\displaystyle 9$% debentures of T $\displaystyle 100$ each at a premium of $\displaystyle 10$%. Pass necessary journal entries for the above transactions in the books of Kiara Ltd.

OR

On 1st April, $\displaystyle 2024$, Zara Ltd. issued $\displaystyle 8,000$, $\displaystyle 9$% Debentures of t $\displaystyle 100$ each at a discount of $\displaystyle 10$%. The company had a balance of $\displaystyle 50,000$ in the Securities Premium Account on the same date. Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.

Books of Kiara Ltd. Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) Sundry Assets A/c Dr. $\displaystyle 12,40,000$ Goodwill A/c Dr. $\displaystyle 2,00,000$ To Sundry Liabilities A/c $\displaystyle 3,40,000$ To Amrex Ltd $\displaystyle 11,00,000$ (Assets and liabilities of Amrex Ltd. taken over) Amrex Ltd. Dr. $\displaystyle 11,00,000$ To Bank A/c $\displaystyle 5,50,000$ To $\displaystyle 9$% Debentures A/c $\displaystyle 5,00,000$ To Securities Premium A/c $\displaystyle 50,000$ (Purchase consideration settled by cheque and issue of $\displaystyle 5,000$ $\displaystyle 9$% debentures of ₹$\displaystyle 100$ each at $\displaystyle 10$% premium) Alternatively, following two entries may be passed instead of the above entry: $\displaystyle 5,50,000$ Amrex Ltd. Dr. To Bank A/c $\displaystyle 5,50,000$ (Paid to Amrex Ltd by cheque) Amrex Ltd. Dr. $\displaystyle 5,50,000$ To $\displaystyle 9$% Debentures A/c $\displaystyle 5,00,000$ To Securities Premium A/c $\displaystyle 50,000$ (Purchase consideration settled by issue of $\displaystyle 5,000$ $\displaystyle 9$% debentures of ₹$\displaystyle 100$ each at $\displaystyle 10$% premium) 1st Q.(b) On April, $\displaystyle 2024$, Zara Ltd. issued $\displaystyle 8,000$, $\displaystyle 9$% Debentures………………. Ans. Books of Zara Ltd. Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) $\displaystyle 2024$ Apr $\displaystyle 1$ Bank A/c Dr. $\displaystyle 7,20,000$ To Debenture Application and Allotment A/c $\displaystyle 7,20,000$ (Application money received on $\displaystyle 8,000$ $\displaystyle 9$%debentures of ₹$\displaystyle 100$ each issued at $\displaystyle 10$% discount) Debenture Application and Allotment A/c Dr. $\displaystyle 7,20,000$ ,, Discount on issue of Debentures A/c Dr. $\displaystyle 80,000$ To $\displaystyle 9$% Debentures A/c $\displaystyle 8,00,000$ ($\displaystyle 8,000$ $\displaystyle 9$% debentures of ₹$\displaystyle 100$ each, issued at $\displaystyle 10$% discount) $\displaystyle 2025$ Securities Premium A/c Dr. $\displaystyle 50,000$ Mar Statement of Profit and Loss Dr. $\displaystyle 30,000$ $\displaystyle 31$ To Discount on issue of Debentures A/c $\displaystyle 80,000$ (Discount on issue of Debentures written off using securities premium and balance in statement of profit and loss)