Debentures: Problems and Solutions | Capital | Accounting

Here is a compilation of top six accounting problems on debentures with its relevant solutions. Illustration 1:  AB Ltd. purchased assets worth Rs. 6, 80,000 and took over liabilities of Rs. 80,000. It was agreed to pay the purchase price of Rs. 6,40,000 by issuing debentures valued Rs. 4,40,000 of Rs. 100 each at a premium of 10% and balance [...]