Page 10 - LN ISSUE OF DEB
P. 10
To Debenture Account
(Being payment made to Vendor by issuing
Debenture at discount )
When Purchase consideration is equal to net value of assets (
Purchase of Business)
Sundry Assets Account Dr.
To Sundry Liabilities Account
To Vendor
When Purchase consideration is more than net value of assets
( Purchase of Business)
Sundry Asset Account Dr.
Goodwill account Dr.
To Sundry Liabilities Account
To Vendor a/c
When Purchase consideration is less than net value of assets ( Purchase
of Business)
Sundry Asset Account Dr.
To Sundry Liabilities A/c
To Capital Reserve A/c
To Vendor a/c
Collateral Security (issue of debentures)
• Collateral security means security provided to lender in addition to
the principal security.
