CBSE 2025 · Region 5 · Set 3 · Q19

KM Ltd. acquired assets worth $\displaystyle 7,20,000$ and took over liabilities of ₹ $\displaystyle 2,00,000$ of LS Ltd. for a purchase consideration of ₹ $\displaystyle 9,60$,000. KM Ltd. issued $\displaystyle 12$% debentures of $\displaystyle 100$ each at a discount of $\displaystyle 4$% in favour of LS Ltd. for payment of purchase consideration. Pass necessary journal entries for the above transactions in the books of KM Ltd.

OR

Varsha Ltd. invited applications for issuing $\displaystyle 2,000$, $\displaystyle 12$% debentures of $\displaystyle 100$ each at a premium of $\displaystyle 30$ per debenture. Full amount was $\displaystyle 3$ $\displaystyle 2$ payable on application. Applications were received for $\displaystyle 5,000$ debentures. Applications for $\displaystyle 3,000$ debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.