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Accountancy · 2022 · 5 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash5 markslong answer
CBSE 2022 · Region 4 · Set 3 · Q8
B Ltd. purchased Building worth ₹ $\displaystyle 3,00,000$, Plant worth ₹ $\displaystyle 2,80,000$ and Furniture worth ₹ $\displaystyle 20,000$ from C Ltd. for a purchase consideration of ₹ $\displaystyle 6,30$,000. B Ltd. paid the purchase consideration by issuing $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each. Pass necessary journal entries in the books of B Ltd. for the acquisition of assets and issue of debentures when : (a) Debentures were issued at par. (b) Debentures were issued at a premium of $\displaystyle 25$%. (c) Debentures were issued at a discount of $\displaystyle 10$%.
Marking-scheme solution
Q. B Ltd. purchased building worth ₹$\displaystyle 3,00,000$ ……………………….
B Ltd.
Journal
L.F.
Debit Credit
Date Particulars
Amount Amount
(₹) (₹)
Building A/c Dr. $\displaystyle 3,00,000$
$\displaystyle 2,80,000$
Plant A/c Dr.
Furniture A/c Dr. $\displaystyle 20,000$
Goodwill A/c Dr. $\displaystyle 30,000$
To C Ltd. $\displaystyle 6,30,000$
( Purchase of assets from C Ltd.)
(a)
C Ltd. Dr.
$\displaystyle 6,30,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 6,30,000$
( Issue of $\displaystyle 6,300$ debentures at par)
(b)
C Ltd. Dr. $\displaystyle 6,30,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 5,04,000$
To Securities Premium
$\displaystyle 1,26,000$
Reserve A/c
(Issue of $\displaystyle 5,040$ debentures of ₹$\displaystyle 100$
each at premium of $\displaystyle 25$%)
$\displaystyle 6,30,000$
(c)
C Ltd. Dr.
Discount / loss on issue of
$\displaystyle 70,000$
debentures A/c Dr.
$\displaystyle 7,00,000$
To $\displaystyle 9$% Debentures A/c
(Issue of $\displaystyle 7,000$ debentures of ₹$\displaystyle 100$
each at a discount of $\displaystyle 10$%)
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CBSE Class 12 Accountancy past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.