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M.64 An Aid to Accountancy—CBSE XII
9. In the Books of C India Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Machinery A/c ...Dr. 2,52,000
To B India Ltd. 2,52,000
(Being the machinery purchased from B India Ltd.)
(ii) B India Ltd. ...Dr. 1,20,000
To Equity Share Capital A/c 1,00,000
To Securities Premium Reserve A/c 20,000
(Being 10,000 equity shares of ` 10 each issued at 20% premium)
(iii) B India Ltd. ...Dr. 95,000
Discount on Issue of Debentures A/c ...Dr. 5,000
To 9% Debentures A/c 1,00,000
(Being 1,000, 9% Debentures of ` 100 each issued at 5% discount)
(iv) B India Ltd. ...Dr. 37,000
To Bank A/c 37,000
(Being the payment made by bank draft)
Alternatively: Following one entry can be passed in place of above (ii), (iii) and (iv)
entries:

Date Particulars L.F. Dr. (`) Cr. (`)
B India Ltd. ...Dr. 2,52,000
Discount on Issue of Debentures A/c ...Dr. 5,000
To Equity Share Capital A/c 1,00,000
To 9% Debentures A/c 1,00,000
To Bank A/c 37,000
To Securities Premium Reserve A/c 20,000
(Being the payment made to B India Ltd. against purchase of machinery)
Working Note:
Value of Machinery purchased by C India Ltd. from B India Ltd. = Amount Payable by C India Ltd. to B India Ltd.
Amount payable by C India Ltd.: `
(i) Equity shares of ` 10 each issued at ` 12 (10,000 × ` 12) 1,20,000
(ii) 9% Debentures of ` 100 each issued at discount price of ` 95 (1,000 × ` 95) 95,000
(iii) Draft 37,000
Amount Payable 2,52,000
Or

JOURNAL OF X LTD.
Date Particulars L.F. Dr. (`) Cr. (`)

Sundry Assets A/c ...Dr. 18,00,000
To Sundry Creditors A/c 2,00,000
To Rohan & Co. 15,00,000
To Capital Reserve A/c 1,00,000
(Being the business of Rohan & Co. purchased for a consideration
of ` 15,00,000)