On 1st April 2025, Vertex Industries Ltd. took over assets of ₹ 27,00,000 and liabilities of ₹ 3,60,000 of Summit Manufacturing Ltd. for a purchase…

In the books of Vetex Ltd. Journal Entries Date Particular L.F Dr. Cr. 2025 April Sundry Assets A/c Dr. 27,00,000 Goodwill A/c (Bal. fig) Dr. 3,00,000 To Summit Manufacturing Ltd. A/c 26,40,000 To Sundry Liabilities A/c 3,60,000 (Assets and liabilities taken over for a net consideration of ₹ 26,40,000) Summit Manufacturing Ltd. A/c Dr. 26,40,000 To 8% Debentures A/c 24,00,000 To Securities Premium A/c 2,40,000 (24000; 8% Debenture of ₹ 100 each issued at a premium of 10%) Bank A/c Dr. 5,40,000 To Debenture Application A/c 5,40,000 (Application money received for 18000, 8% Debenture) Debenture Application A/c Dr. 5,40,000 To 8% Debenture A/c 5,40,000 (18000; 8% Debenture allotted) Debentures allotment A/c Dr. 10,80,000 Loss on issue of debenture A/c Dr. 2,70,000 To 8% Debentures A/c 12,60,000 To Premium on redemption of debentures A/c 90,000 (Allotment money due on 18,000; 8% Debentures at 10% discount and redeemable at 5% premium) 2026 Mar, 31 Bank A/c Dr. 10,80,000 To Debentures Allotment A/c 10,80,000 (Allotment money received) Profit and Loss A/c Dr. 2,70,000 To Loss on issue of Debenture A/c 2,70,000 (Loss on issue of debenture written off)