ABC Ltd., is in the business of manufacturing rubber products. It decided to install RO water System for providing clean and hygienic drinking water to its employees. It named the project as 'Employees Healthcare'. It purchased RO water machines from XYZ Ltd., for Rs 11,00,000. It was agreed that purchase consideration be paid by issuing 10% debentures of Rs 100 each (i) at a premium of 10%, (ii) at par. Pass necessary Journal entries.

ABC Ltd., is in the business of manufacturing rubber products. It deci

1.	ABC Ltd., is in the business of manufacturing rubber products. It decided to install RO water System for providing clean and hygienic drinking water to its employees. It named the project as 'Employees Healthcare'. It purchased RO water machines from XYZ Ltd., for Rs 11,00,000. It was agreed that purchase consideration be paid by issuing 10% debentures of Rs 100 each (i) at a premium of 10%, (ii) at par. Pass necessary Journal entries.
Answer» ABC Ltd., is in the business of manufacturing rubber products. It decided to install RO water System for providing clean and hygienic drinking water to its employees. It named the project as 'Employees Healthcare'. It purchased RO water machines from XYZ Ltd., for Rs 11,00,000. It was agreed that purchase consideration be paid by issuing 10 $%$ debentures of Rs 100 each (i) at a premium of 10 $%$ , (ii) at par. Pass necessary Journal entries.