Exe Ltd. purchased assets of the book value ₹ 4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros

Exe Ltd. purchased assets of the book value ₹ 4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each. Pass Journal entries if debentures are issued: (a) at par, (b) at a discount of 10% and (c) at a premium of 10%. It was agreed that any fraction of debentures be paid in cash.

[Ans.: Goodwill ₹ 30,000; Case (a) 3,800 Debentures of ₹ 100 each; Case (b) 4,222 Debentures of ₹ 100 each and paid cash ₹ 20; Case (c) 3,454 Debentures of ₹ 100 each and paid cash ₹ 60.]