✓ Board-verified
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 10,000 equity shares of? 10 each…
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.
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:
(ii)(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)
All Accounting for Share Capital questions2024 question paperPractice Accounting for Share Capital →
More from Accounting for Share Capital
- Zinki Limited forfeited a share of ₹ 100 issued at a premium of 20% for non - payment of first call of ₹ 30 per share and final call of ₹ 10 per…2023
- A portion of the called-up capital which has been actually received from the shareholders is termed as:2023
- Reserve capital is that portion of the capital that can be called only in the event of winding up of the company. OR The debentures which do not…2026
- Mayank Ltd. invited applications for issuing 70,000 equity shares of f 100 each. The amount was payable as follows: On Application - t 20 per share…2025
- Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows: On…2023
- If a share of ₹ 100 on which ₹ 70 has been paid is forfeited, then at which minimum price can it be re-issued? OR If a share of ₹ 10 issued at a…2024
- Ajanta Ltd. invited applications for issuing 30,000 equity shares of T 10 each at a premium of 5 per share. The amount was payable as follows: On…2026
- Vishant Ltd. invited applications for issuing 6,000 equity shares of ₹ 10 each at 10% premium. The issue was fully subscribed. The amount per share…2024
CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.