X Company purchased assets of the book value of ₹ 10,45,000 from Y Co. It was agreed that the purchase consideration be paid by issuing 14% Debentures of ₹ 100 each

X Company purchased assets of the book value of ₹ 10,45,000 from Y Co. It was agreed that the purchase consideration be paid by issuing 14% Debentures of ₹ 100 each. Assume debentures have been issued (i) at par; (ii) at a premium of 10%, and (iii) at a discount of 5%.

Give necessary journal entries in the books of X company.

[Ans. Number of Debentures issued in Case (i) 10,450; Case (ii) 9,500, and Case (iii) 11,000.]