In illustration 2 a) discharge 15% debentures at a premium of 10%By issuing 15% debentures of B ltd But debentures is not part of purchase consideration so why they have taken in purchase consideratio

Question

Aleena · Answer

Yup

Riya · Answer

You means while making payment of purchase consideration we don't pay to debentures holders.right!

Aleena · Answer

Asset - liability= net asset which is the value of firm Debenture is not included in purchase consideration but will be included to find net asset

Simar · Answer

Debentures outside liability hi hoti hai

Riya · Answer

Outside liability hai ye kaise samaj aya

Simar · Answer

Outside liability hai to deduct kiya hai

Prakash · Answer

They have discharged the debentures because it's a liability (all liabilities are deducted from assets , it's a net asset value method)

In illustration 2 a) discharge 15% debentures at a premium of 10%By issuing 15% debentures of B ltd But debentures is not part of purchase consideration so why they have taken in purchase consideratio

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