Question

Wye Ltd . purchased an established business for ​₹ 2,00,000 payable as ​₹ 65,000 by cheque and the balance by issuing 9% Debentures of ​₹ 100 each at a discount of 10%.
Give journal entries in the books of Wye Ltd.

Answer 1

Books of Wye Ltd.
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Sundry Assets A/c	Dr.		2,00,000
	To Vendor A/c				2,00,000
	(Business purchased)
	Vendor A/c	Dr.		65,000
	To Bank A/c				65,000
	(Amount paid to Vendor in cash)
	Vendor A/c	Dr.		1,35,000
	Discount on Issue of Debentures A/c	Dr.		15,000
	To 9% Debentures A/c				1,50,000
	(Issued 1,500 debentures at 10% discount)

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