Timber Ltd. took over the assets worth ₹ 6,00,000 and liabilities of ₹ 80,000 of Zenith Ltd. for an agreed purchase consideration of ₹ 5,40,000 to be satisfied by the issue of 10% Debentures of ₹ 100 each. Pass necessary
CS CSEET · Fundamentals of Accounting · PYQS · October 2026
Timber Ltd. took over the assets worth ₹ 6,00,000 and liabilities of ₹ 80,000 of Zenith Ltd. for an agreed purchase consideration of ₹ 5,40,000 to be satisfied by the issue of 10% Debentures of ₹ 100 each. Pass necessary Journal entries in the books of Timber Ltd. considering the following options: Such debentures are issued at par Such debentures are issued at 10% discount Such debentures are issued at 20% premium.
Topics: Company Accounts
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