‘UZ Ltd.’ purchased Plant and Machinery from Elk Machine Ltd. for Rs.  6,90,000. Elk Ltd. was paid by accepting a draft of Rs.  90,000 payable after three months and the balance by issue of 6% debentures of Rs.  100 each at a discount of 20%.

Pass necessary journal entries for the above transactions in the books of ‘UZ Ltd.’

Marks-3, CBSE:2018-19/Main/02/Q-8*