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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 4 · Set 2 · Q20
Mallark Ltd. purchased assets of book value ₹ 40,00,000 and took over liabilities of ₹ 5,00,000 from Naroha Ltd. It was agreed that the purchase…
Mallark Ltd. purchased assets of book value ₹ $\displaystyle 40,00,000$ and took over liabilities of ₹ $\displaystyle 5,00,000$ from Naroha Ltd. It was agreed that the purchase consideration, ₹ $\displaystyle 36,00,000$ be paid by issuing $\displaystyle 7$% debentures of $\displaystyle 100$ each at a premium of $\displaystyle 20$%. $\displaystyle 2$ Record the journal entries in the books of Mallark Ltd. for the above transactions.
Sunlock Ltd. purchased assets of book value ₹ $\displaystyle 50,00,000$ and took over liabilities of ₹ $\displaystyle 6,00,000$ from Moondock Ltd. It paid the purchase consideration by issue of $\displaystyle 46,000$, $\displaystyle 8$% debentures of $\displaystyle 3$ $\displaystyle 100$ each at a discount of $\displaystyle 10$%. Record the journal entries in the books of Sunlock Ltd.
Marking-scheme solution
Books of Mallark Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
Assets A/c Dr. $\displaystyle 40,00,000$
Goodwill A/c Dr. $\displaystyle 1,00,000$
To Liabilities A/c $\displaystyle 5,00,000$
To Naroha Ltd. $\displaystyle 36,00,000$
(Business of Naroha Ltd. taken over at
₹$\displaystyle 36,00,000$)
Naroha Ltd. Dr. $\displaystyle 36,00,000$
To $\displaystyle 7$% Debentures A/c $\displaystyle 30,00,000$
To Securities Premium A/c $\displaystyle 6,00,000$
(issued $\displaystyle 30,000$, $\displaystyle 7$% Debentures of ₹$\displaystyle 100$
each at a premium of $\displaystyle 20$%)
Q. Sunlock Ltd. purchased assets ………………………………..
Ans.
Books of Sunlock Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount (₹) Amount (₹)
Assets A/c Dr. $\displaystyle 50,00,000$
To Liabilities A/c $\displaystyle 6,00,000$
To Moondock Ltd. $\displaystyle 41,40,000$
To Capital Reserve A/c $\displaystyle 2,60,000$
(Business of Moondock Ltd. taken over at
₹$\displaystyle 41,40,000$)
Moondock Ltd. Dr. $\displaystyle 41,40,000$
Discount on Issue of Debentures A/c Dr. $\displaystyle 4,60,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 46,00,000$
(Issued $\displaystyle 46,000$, $\displaystyle 8$% Debentures of ₹$\displaystyle 100$ each
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.