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Accountancy · 2024 · 3 marks
CBSE 2024 · Region 5 · Set 1 · Q19
Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing $\displaystyle 10,000$ equity shares of? $\displaystyle 10$ each at a premium of $\displaystyle 10$% and a bank draft of? $\displaystyle 50$,000. Pass the necessary Journal entries in the books of Chavi Ltd. for the above transactions.OROn 1st October, $\displaystyle 2022$ Ninza Ltd. issued $\displaystyle 4,000$, $\displaystyle 8$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%. The company had a balance of ₹ $\displaystyle 50,000$ in Securities Premium Account on the same date. Pass necessary Journal entries for issue of debentures and to write off discount on issue of debentures.
OR
On 1st October, $\displaystyle 2022$ Ninza Ltd. issued $\displaystyle 4,000$, $\displaystyle 8$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%. The company had a balance of ₹ $\displaystyle 50,000$ in Securities Premium Account on the same date. Pass necessary Journal entries for issue of debentures and to write off discount on issue of debentures.Marking-scheme solution
Books of Chavi Ltd.
Journal
Date Particulars LF Dr.Amount Cr.Amount
(₹) (₹)
(i)
Machinery A/c Dr. $\displaystyle 1,60,000$
To Neo Ltd.A/c $\displaystyle 1,60,000$
(Machinery purchased from Neo Ltd.)
(ii)
Neo Ltd. A/c Dr. $\displaystyle 1,60,000$
To Equity Share Capital A/c $\displaystyle 1,00,000$
To Securities Premium A/c $\displaystyle 10,000$
To Bank A/c $\displaystyle 50,000$
(Issued $\displaystyle 10,000$ equity shares of ₹$\displaystyle 10$ each at a premium
of $\displaystyle 10$% and bank draft in favour of Neo Ltd.)
Alternatively:
(a)
Neo Ltd. A/c Dr. $\displaystyle 1,10,000$
To Equity Share Capital A/c $\displaystyle 1,00,000$
To Securities Premium A/c $\displaystyle 10,000$
(Issued $\displaystyle 10,000$ equity shares of ₹$\displaystyle 10$ each at a premium
of $\displaystyle 10$% to Neo Ltd.)
(b)
Neo Ltd. A/c Dr. $\displaystyle 50,000$
To Bank A/c $\displaystyle 50,000$
(Payment made to Neo Ltd. by a bank draft)
Q. (b) On 1st October, $\displaystyle 2022$ Ninza Ltd…….
Ans.
Books of Ninza Ltd.
Journal
Date Particulars LF Dr.Amount Cr.Amount
(₹) (₹)
$\displaystyle 2022$ Bank A/c Dr. $\displaystyle 3,60,000$
Oct.1 To Debenture Application and Allotment A/c $\displaystyle 3,60,000$
(Application money received on $\displaystyle 4,000$, $\displaystyle 8$%
Debentures of ₹$\displaystyle 100$ each)
” Debenture Application and Allotment A/c Dr. $\displaystyle 3,60,000$
Discount on issue of debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 4,00,000$
(Allotment of $\displaystyle 4,000$, $\displaystyle 8$% Debentures of ₹$\displaystyle 100$ each at
a discount of $\displaystyle 10$%)
$\displaystyle 2023$ Securities Premium A/c Dr. $\displaystyle 40,000$
Mar.31 To Discount on issue of debentures A/c $\displaystyle 40,000$
(Discount on issue of debentures written off from
Securities Premium account)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.