A company "B" is absorbed by "A" ltd B ltd has 5,00,000/- 12% debentures O/s as on date of absorbtion. The scheme of absorbtion provides as under
12 % debentures holders of B ltd are to be paid at 8% premium by 15% debentures in A ltd issued at discount of 10%.
against this A ltd has passed the following entries
12% debentures holder A/c 5,40,000.00
Discount on issues of Debentures 60,000.00
To 15% Debentuers A/c 6,00,000.00
I am not clear about the above entries please help me in clerifing the above journal entry
CAclubindia
