{"id":135461,"date":"2023-03-31T15:46:12","date_gmt":"2023-03-31T10:16:12","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=135461"},"modified":"2023-03-31T15:46:12","modified_gmt":"2023-03-31T10:16:12","slug":"kuber-ltd-purchased-assets-worth-1000000-and-took-over-liabilities-of-100000-of-amrit-ltd-for","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/quiz\/kuber-ltd-purchased-assets-worth-1000000-and-took-over-liabilities-of-100000-of-amrit-ltd-for","title":{"rendered":"Kuber Ltd. purchased assets worth % 10,00,000 and took over liabilities of %1,00,000 of Amrit Ltd. for&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;"},"content":{"rendered":"<h2>Question :Kuber Ltd. purchased assets worth % 10,00,000 and took over liabilities of %1,00,000 of Amrit Ltd. for a purchase consideration of @ 8,00,000. Kuber Ltd. paid % 2,60,000 through a cheque and the balance was settled by issuing 12% debentures of \u00a2 100 each at a discount of 10%. Pass necessary journal entries in the books of Kuber Ltd. for the above transactions.<\/h2>\n<h3>The correct answer is -The journal entries for the given transactions in the books of Kuber Ltd. are as follows:<\/h3>\n<h3>To record the purchase of assets and takeover of liabilities of Amrit Ltd:<\/h3>\n<h3>Assets Account Dr. 10,00,000 To Liabilities Account 1,00,000 To Bank Account 7,60,000 (Being assets and liabilities taken over from Amrit Ltd. and payment made through bank)<\/h3>\n<h3>To record the issuance of 12% debentures of Rs. 100 each at a discount of 10%:<\/h3>\n<h3>Bank Account Dr. 2,34,000 Discount on Debentures Account Dr. 26,000 To 12% Debentures Account 2,60,000 (Being issuance of 12% debentures at a discount of 10%)<\/h3>\n<h3>Note: Discount on Debentures Account is a nominal account and is shown on the liabilities side of the Balance Sheet under the head &#8216;Reserves and Surplus&#8217;.<\/h3>\n<h3>The Balance Sheet of Kuber Ltd. after the above transactions will be as follows:<\/h3>\n<h3>Liabilities Amount (Rs.) Assets Amount (Rs.) Share Capital 8,00,000 Fixed Assets 10,00,000 Reserves &amp; Surplus Less: Depreciation (X) (excluding DOD) X X Debentures 2,60,000 Current Assets (X) Less: Current Liabilities (X) (X) (X) DOD (X) (X) (X) Total (X) Total (X)<\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Question :Kuber Ltd. purchased assets worth % 10,00,000 and took over liabilities of %1,00,000 of Amrit Ltd. for a purchase consideration of @ 8,00,000. Kuber Ltd. paid % 2,60,000 through a cheque and the balance was settled by issuing 12% debentures of \u00a2 100 each at a discount of 10%. Pass necessary journal entries in [&hellip;]<\/p>\n","protected":false},"author":21830,"featured_media":132233,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12119],"tags":[],"class_list":{"0":"post-135461","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quiz"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=135461"}],"version-history":[{"count":1,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135461\/revisions"}],"predecessor-version":[{"id":135463,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/135461\/revisions\/135463"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/132233"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=135461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=135461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=135461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}