Rad fey Ltd. took over assets of; $\displaystyle 14,00,000$ and liabilities of $\displaystyle 6,00,000$ of Krishna Ltd. Rad fey Ltd. paid the purchase consideration by issuing $\displaystyle 10,000$, $\displaystyle 8$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 10$%. Pass necessary journal entries in the books of Rad fey Ltd.

OR

Amay Ltd. invited applications for issuing $\displaystyle 10,000$, $\displaystyle 8$% debentures of ₹ $\displaystyle 100$ each. The amount was payable as follows : $\displaystyle 5$ $\displaystyle 30$ on application and ₹ $\displaystyle 70$ on allotment. The public applied for $\displaystyle 12,000$ debentures. Applications for $\displaystyle 8,000$ debentures were accepted in full, applications for $\displaystyle 3,000$ debentures were allotted $\displaystyle 2,000$ debentures and the remaining applications were rejected. All money was duly received. Pass the necessary journal entries in the books of the company for the above transactions.

Radhey Ltd. Journal Debit Credit Date Particulars L.F. Amount Amount (₹) (₹) Sundry Assets A/c Dr. $\displaystyle 14,00,000$ Goodwill A/c Dr. $\displaystyle 3,00,000$ To Sundry Liabilities A/c $\displaystyle 6,00,000$ To Krishna Ltd. A/c $\displaystyle 11,00,000$ (Being Assets and Liabilities of Krishna Ltd. taken over) Krishna Ltd. A/c Dr. $\displaystyle 11,00,000$ To $\displaystyle 8$% Debentures A/c $\displaystyle 10,00,000$ To Securities Premium Reserve A/c $\displaystyle 1,00,000$ (Being $\displaystyle 1,000$, $\displaystyle 8$% Debentures issued at premium) Q. (b) Amay Ltd. invited applications…………. Ans. Amay ltd. Journal Date Particulars L.F. Debit Credit Amount Amount (₹) (₹) Bank A/c Dr. $\displaystyle 3,60,000$ To Debenture Application A/c $\displaystyle 3,60,000$ (Receipt of Application money for $\displaystyle 12,000$ Debentures) Debenture Application A/c Dr. $\displaystyle 3,60,000$ To $\displaystyle 8$% Debentures A/c $\displaystyle 3,00,000$ To Debenture Allotment A/c $\displaystyle 30,000$ To Bank A/c $\displaystyle 30,000$ (Debenture Application money transfer to Debenture A/c, excess credited to Debenture Allotment and money refunded on rejected application) Debenture Allotment A/c Dr. $\displaystyle 7,00,000$ $\displaystyle 7,00,000$ To $\displaystyle 8$% Debentures A/c (Amount due on allotment on $\displaystyle 10,000$ Debentures) Bank A/c Dr. $\displaystyle 6,70,000$ To Debenture Allotment A/c $\displaystyle 6,70,000$ (Debenture allotment money received)