The AB Ltd. took over the Assets of 8,00,000 and Liabilities of $ 70,000 of S Ltd. for the purchase consideration of $7,70,000. The AB Ltd. paid the purchase consideration by issuing 8% Debentures of $100 each at 10% premium. Draft the journal entries in the books of AB Ltd.

The AB Ltd. took over the Assets of 8,00,000 and Liabilities of $ 70,000 of S Ltd. for the purchase consideration of $7,70,000. The AB Ltd. paid the purchase consideration by issuing 8% Debentures of $100 each at 10% premium. Draft the journal entries in the books of AB Ltd.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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