Topic amalgamation of companies
In question 15% debentures of rs 500000 is given in the books of trasferor company
And other information is given transferee company to issue 105 rs., 14% debentures in satisfaction of each rs. 100, 15% debentures of trasferor company
And entries passed are:-
15% debentures account. Dr. 100000
To investment in own debentures account 85000
To Realisation account. 15000
( Being cancellation of investment in own debentures)
Please help me in this. How these amount of 85000 and 15000 came