✓ Board-verified
Accountancy · 2026 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2026 · Region 3 · Set 3 · Q19
Oasis Ltd. purchased building worth ₹ 12,00,000, machinery worth ₹ 1,90,000 and furniture worth ₹ 3,00,000 from Nitara Ltd. and took over its…
Oasis Ltd. purchased building worth ₹ $\displaystyle 12,00,000$, machinery worth ₹ $\displaystyle 1,90,000$ and furniture worth ₹ $\displaystyle 3,00,000$ from Nitara Ltd. and took over its liabilities of ₹ $\displaystyle 90,000$ for a purchase consideration of ₹ $\displaystyle 15,30$,000. Oasis Ltd. paid the purchase consideration by issuing $\displaystyle 11$% Debentures of $\displaystyle 100$ each at a discount of $\displaystyle 10$%. Pass necessary journal entries in the books of Oasis Ltd. for the above transactions.
On 1st April, $\displaystyle 2025$, Bharat Heavy Industries Ltd. purchased the running business of Mac Ltd. consisting of sundry assets of the book value of ₹ $\displaystyle 20,00,000$ and sundry liabilities of ₹ $\displaystyle 8,00,000$ for a purchase consideration of ₹ $\displaystyle 15,00$,000. The purchase consideration was paid by issuing $\displaystyle 8,000$, $\displaystyle 9$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 25$% and the balance was paid by a bank draft in favour of Mac Ltd. Pass necessary journal entries for the above transactions in the books of Bharat Heavy Industries Ltd.
Marking-scheme solution
Books of Oasis Ltd.
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
(₹) (₹)
Building A/c Dr. $\displaystyle 12,00,000$
Machinery A/c Dr. $\displaystyle 1,90,000$
Furniture A/c Dr. $\displaystyle 3,00,000$
To Liabilities A/c $\displaystyle 90,000$
To Nitara Ltd $\displaystyle 15,30,000$
To Capital Reserve A/c $\displaystyle 70,000$
(Assets & liabilities of Nitara Ltd. taken
over)
Nitara Ltd. Dr. $\displaystyle 15,30,000$
Discount on Issue of Debenture A/c Dr. $\displaystyle 1,70,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 17,00,000$
($\displaystyle 17,000$ Debentures of ₹$\displaystyle 100$ each issued at
a discount of $\displaystyle 10$%)
Q. On 1st April, $\displaystyle 2025$, Bharat Heavy Industries Ltd. purchased….
Ans.
Books of Bharat Heavy Industries Ltd.
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
(₹) (₹)
$\displaystyle 2025$
April $\displaystyle 1$ Sundry Assets A/c Dr. $\displaystyle 20,00,000$
Goodwill A/c Dr. $\displaystyle 3,00,000$
To Sundry Liabilities A/c $\displaystyle 8,00,000$
To Mac Ltd. $\displaystyle 15,00,000$
(Acquiring running business of Mac Ltd.)
Mac Ltd. Dr. $\displaystyle 15,00,000$
April $\displaystyle 1$
To $\displaystyle 9$% Debentures A/c $\displaystyle 8,00,000$
To Securities Premium A/c $\displaystyle 2,00,000$
To Bank A/c $\displaystyle 5,00,000$
(Purchase consideration paid by issue of $\displaystyle 8,000$
$\displaystyle 9$% Debentures at a premium of $\displaystyle 25$% and the
balance through a cheque)
Alternative
April $\displaystyle 1$ Mac Ltd. Dr. $\displaystyle 10,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 8,00,000$
To Securities Premium A/c $\displaystyle 2,00,000$
(Purchase consideration paid by issue of $\displaystyle 8,000$
$\displaystyle 9$% Debentures at a premium of $\displaystyle 25$%)
April $\displaystyle 1$ Mac Ltd. Dr. $\displaystyle 5,00,000$
To Bank A/c $\displaystyle 5,00,000$
(Purchase consideration paid through a
cheque)
All Issue and Redemption of Debentures questions2026 question paperPractice Issue and Redemption of Debentures →
More from Issue and Redemption of Debentures
- Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed purchase consideration of ₹ 12,60,000. It…2024
- Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called:2025
- Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10%…2023
- On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total amount of interest due on debentures for…2024
- Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from Gurnam Ltd. for a purchase consideration…2022
- Shivalik Ltd. issued 7% debentures of 2 100 each at a discount of 5% on 1st April, 2023. Discount on issue of debentures, ₹ 1,00,000 was completely…2025
- The debentures which do not carry a specific rate of interest are called:2024
- Debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register…2025
CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.