On 1st April, 2021, Hitesh Ltd. took over assets of 8,00,000 and liabilities of 40,000 of Pranjal Ltd. at an agreed value of 8,30,000. Hitesh Ltd. paid the amount to Pranjal Ltd. as follows:

(i) Gave an acceptance payable after 3 months for 2,00,000,

and

(ii) Issued 10% Debentures of 100 each at a discount of 10% to Pranjal Ltd. in satisfaction of the balance amount of purchase consideration.

 Pass the necessary journal entries to record the above transaction in the books of Hitesh Ltd.,

Marks-3, CBSE:2022-23/Zone-4/Set-1/Q-19*

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