My grammar is 💯 good I
7296 Points
Joined March 2019
In the books of B
1.& 2. it doesn’t matter because it used amounts while acquisition and not number of shares data. So, A total equity= Two lakhs worth
By cost of investment a/c two lakhs
To Bank one lakh eighty thousand only
To Cash twenty thousand
3. While transferring debentures, the par value can be transferred from A the same as this and B will re calculate the outstanding liabilities payable at the end of the year.
By A a/c (fifty thousand)
To Debentures a/c
In the books of A
By Bank (two lakhs)
To Sales proceeds
To recognise the loss,
By loss on sale (fifty thousand)
To Sploci-pl
then derecognise NB the debentures
By Debentures a/c ( fifty thousand)
To B a/c
Hope this is the right answer