AS 14

The adjustment says 15% Debentures are to be issued to Debenture holders for A Ltd., B Ltd. so that interest remains same. So, Interest on 10% debentures of A Ltd. is 6,000. So, we are to issue X debentures on which 15% interest comes out to be 6,000. This will be Interest on 10% debentures of 60,000 / 15% = 6,000/15% = 40,000 Similarly, for B Ltd. it will be calculated as: Interest on 10% debentures of 30,000 / 15% = 3,000/15% = 20,000

Sahibdeep Singh

CA Inter

★ 14K+

16-Apr-21 10:16

Thanks a lot sir

Thread Starter

Bliss Full

CA Inter

★ 580

16-Apr-21 10:57