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Accountancy · 2023 · 3 marks
CBSE 2023 · Region 1 · Set 2 · Q20
Annex Ltd. issued 1,00,000 shares of ₹ 10 each at a premium of 10% to the public for subscription. The whole amount was payable on application.…
Annex Ltd. issued $\displaystyle 1,00,000$ shares of ₹ $\displaystyle 10$ each at a premium of $\displaystyle 10$% to the public for subscription. The whole amount was payable on application. Applications were received for $\displaystyle 3,00,000$ shares and the board decided to allot shares to all shareholders on pro - rata basis. Pass necessary journal entries for the above transactions in the books of Annex Ltd.
Shovan Limited took over the assets of ₹ $\displaystyle 60,00,000$ and liabilities of ₹ $\displaystyle 10,00,000$ from Swami Limited for an agreed purchase consideration of ₹ $\displaystyle 45,00$,000. The amount was payable by issuing $\displaystyle 10$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 25$% premium. Pass necessary journal entries for the above transactions in the books of Shovan Limited.
Marking-scheme solution
(a)
Books of Annex Ltd.
Journal
Debit Credit
Date Particulars L.F
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 33,00,000$
To Share application and allotment A/c $\displaystyle 33,00,000$
(Application money received on
$\displaystyle 3,00,000$ shares)
Share application and allotment A/c Dr. $\displaystyle 33,00,000$
To Bank A/c $\displaystyle 22,00,000$
To Share Capital A/c $\displaystyle 10,00,000$
To Securities Premium/ $\displaystyle 1,00,000$
Securities Premium Reserve A/c
(Application money transferred to
share capital account, securities
premium account and excess
refunded)
Q. (b) Shovan Limited took over ……………
Ans (b) Books of Shovan Limited
Journal
Debit Credit
Date Particulars L.F
Amount Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 6,00,000$
To Sundry Liabilities A/c $\displaystyle 10,00,000$
To Swami Ltd. $\displaystyle 45,00,000$
To Capital Reserve A/c $\displaystyle 5,00,000$
(Purchased assets and took over liabilities
from Swami Ltd.)
Swami Ltd. Dr. $\displaystyle 45,00,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 36,00,000$
To Securities Premium/ Securities $\displaystyle 9,00,000$
Premium Reserve A/c
(Issued $\displaystyle 36,000$ $\displaystyle 10$% debentures to Swami Ltd
at premium of $\displaystyle 25$% )
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.