Grapple Ltd. took over assets of Rs. 25,00,000 and liabilities of Rs. 5,00,000 from Allore Ltd. for an agreed purchase consideration of Rs. 18,00,000. Grapple Ltd. issued 11% Debentures of Rs. 100 each at 20% premium in satisfaction of the purchase consideration.

Pass necessary journal entries in the books of Grapple Ltd. Show your workings clearly.

Marks-3, CBSE: 2023-24/Zone-1/Set-1/Q-19b*