Accounts amalgamation

5,00,000 X 108 == (a) X 90

so, the value of (a) comes to Rs. 6Lakh.........

In the above equation, the left side product is the agreed amount of debentures redeemed( i.e. Rs. 5.4L).......and the missing figure(a) is face value of new debentures issued.(i.e. Rs 6 Lakh)

so, the remaning diff. comes to discount.

brother I understand your clarification. but I have one confusion while we issue the debenture at disc. then they are shown at their face value. which is 5 lacs in my query.

If 5 lac is the face value then why we assume 5.4 lac equat to 90 %. In my opinion when 5.4 is equal to 90% then why we should not have to calculate premium on 6 lacs instead of 5 lacs.

Sumit Ji 

As I now understand from the problem that A Ltd issuing its debentures at 10% discount as purchase consideration to B ltd for purchasing its debentures. Please help in understanding