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Accountancy · 2025 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2025 · Region 1 · Set 1 · Q19
Delight Ltd. purchased assets worth ₹ 4,00,000 and took over liabilities of ₹ 70,000 of Marvel Ltd. for a purchase consideration of ₹ 3,60,000.…
Delight Ltd. purchased assets worth ₹ $\displaystyle 4,00,000$ and took over liabilities of ₹ $\displaystyle 70,000$ of Marvel Ltd. for a purchase consideration of ₹ $\displaystyle 3,60$,000. Delight Ltd. paid the purchase consideration by issuing $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 20$%. Pass necessary journal entries in the books of Delight Ltd.
Prime Ltd. took over assets of ₹ $\displaystyle 6,00,000$ and liabilities of ₹ $\displaystyle 1,00,000$ of Rabi Ltd. for a purchase consideration of ₹ $\displaystyle 3,60$,000. Prime Ltd. issued $\displaystyle 10$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% in full satisfaction of purchase consideration. Pass necessary journal entries in the books of Prime Ltd.
Marking-scheme solution
Books of Delight Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Assets A/c Dr. $\displaystyle 4,00,000$
Goodwill A/c Dr. $\displaystyle 30,000$
To Liabilities A/c $\displaystyle 70,000$
To Marvel Ltd. $\displaystyle 3,60,000$
(Assets and liabilities of Marvel Ltd. taken over)
Marvel Ltd. Dr. $\displaystyle 3,60,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 3,00,000$
To Securities Premium A/c $\displaystyle 60,000$
(Issue of $\displaystyle 3,000$ debentures at a premium of $\displaystyle 20$%)
Q. (b) Prime Ltd. took over assets of ₹$\displaystyle 6,00,000$…
Ans.
Books of Prime Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Assets A/c Dr. $\displaystyle 6,00,000$
To Liabilities A/c $\displaystyle 1,00,000$
To Rabi Ltd. $\displaystyle 3,60,000$
To Capital Reserve A/c $\displaystyle 1,40,000$
(Assets and liabilities of Rabi Ltd. taken over)
Rabi Ltd. Dr. $\displaystyle 3,60,000$
Discount on issue of debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 4,00,000$
(Issue of $\displaystyle 4,000$ debentures at a discount of $\displaystyle 10$%)
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.