Glen Ltd. took over the running business of Hayward Ltd. having assets of ₹ 22,00,000 and liabilities of ₹ 6,00,000 by issuing 20,000, 11% Debentures of ₹ 100 each at 5% discount

Glen Ltd. took over the running business of Hayward Ltd. having assets of ₹ 22,00,000 and liabilities of ₹ 6,00,000 by issuing 20,000, 11% Debentures of ₹ 100 each at 5% discount.

You are required to pass the journal entries in the books of Glen Ltd. if debentures were to be redeemed at 10% premium.

[Ans. Goodwill ₹ 3,00,000; Loss on Issue ₹ 3,00,000 will be written off from Statement of Profit and Loss.]