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Final Settlement with Partner (Dissolution)

Amrit Ltd . w...

Question

Amrit Ltd . was promoted by Amrit and Bhaskar with an authorised capital of ₹ 10,00,000 divide into 1,00,000 shares of ₹ 10 each.
The company decided to issue 1,000,6% Debentures of ₹ 100 each to Amrit and Bhaskar each for their services in incorporating the company.
Pass journal entry.

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Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Incorporation Cost A/c (2,000 × 100)

Dr.

2,00,000

To 6% Debentures A/c

2,00,000

( Debentures issued to promoters)

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