CBSE Class 12 Accountancy — Accounting for Share Capital / Issue and Redemption of Debentures

(a) Raunak Cotton Ltd. purchased machinery of Rs. 6,80,000 from Heavy Machines Ltd. The Payment to Heavy Machines Ltd. was made by issuing 10,500 equity shares of Rs. 50 each at a premium of 20% and the balance through a cheque. Pass necessary journal entries for the above transactions in the books of Raunak Cotton Ltd. OR (b) Neo Ltd. took over assets of Rs. 25,00,000 and liabilities of Rs. 12,00,000 of Madura Ltd. for a purchase consideration of Rs. 18,00,000. Neo Ltd. issued 11% debentures of Rs. 100 each at a discount of 10% in full satisfaction of the purchase consideration. Pass necessary journal entries for the above transactions in the books of Neo Ltd.