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Accountancy · 2025 · 3 marks
CBSE 2025 · Region 7 · Set 2 · Q18
On 1st April, 2024, Varsha Ltd. purchased from Rama Ltd., furniture at % 12,00,000 and machinery at % 20,00,000. It also took over its liabilities…
On 1st April, $\displaystyle 2024$, Varsha Ltd. purchased from Rama Ltd., furniture at % $\displaystyle 12,00,000$ and machinery at % $\displaystyle 20,00$,000. It also took over its liabilities amounting to ₹ $\displaystyle 3,00$,000. The purchase consideration of ₹ $\displaystyle 35,00,000$ was paid by issuing a bank draft of ₹ $\displaystyle 2,00,000$ and the balance by issue of $\displaystyle 11$% Debentures of $\displaystyle 100$ each, at a premium of $\displaystyle 10$%. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.
Roshni Ltd. purchased machinery worth ₹ $\displaystyle 1,98,000$ from Prakash Ltd. The purchase consideration was paid by issue of $\displaystyle 8$% debentures of $\displaystyle 100$ each at $\displaystyle 10$% discount. (i) Calculate the number of debentures issued. (ii) Pass necessary journal entries for purchase of machinery and issue of debentures.
Marking-scheme solution
In the books of Varsha Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount (₹) Amount(₹)
$\displaystyle 2024$ Furniture A/c Dr. $\displaystyle 12,00,000$
April Machinery A/c Dr. $\displaystyle 20,00,000$
$\displaystyle 1$
Goodwill A/c Dr. $\displaystyle 6,00,000$
To Sundry Liabilities A/c $\displaystyle 3,00,000$
To Rama Ltd. $\displaystyle 35,00,000$
(Assets acquired and liabilities taken
over from Rama Ltd.)
,, Rama Ltd. Dr. $\displaystyle 35,00,000$
To Bank A/c $\displaystyle 2,00,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 30,00,000$
To Securities Premium A/c $\displaystyle 3,00,000$
(Purchase consideration settled by
issuing a bank draft & $\displaystyle 30,000$ $\displaystyle 11$%
debentures at a premium of $\displaystyle 4$% )
Working Note:
No. of debentures issued = (Purchase Consideration) / Issue Price
= $\displaystyle 33,00,000$/ $\displaystyle 110$ = $\displaystyle 30,000$ debentures
OR
Q. (b) Roshni Ltd. purchased…………
Ans. (i) Calculation of the number of debentures issued:
Number of debentures issued= Purchase Consideration/ Issue Price
= $\displaystyle 1,98,000$/ $\displaystyle 90$
= $\displaystyle 2,200$ debentures
(ii)
In the books of Roshni Ltd.
Journal
Date Particulars L.F Dr. Cr.
Amount (₹) Amount (₹)
Machinery A/c Dr. $\displaystyle 1,98,000$
To Prakash Ltd. $\displaystyle 1,98,000$
(Machinery purchased from Prakash Ltd.)
Prakash Ltd. Dr. $\displaystyle 1,98,000$
Discount on Issue of Debentures A/c Dr. $\displaystyle 22,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 2,20,000$
(Purchase consideration settled by issuing
$\displaystyle 2,200$ ,$\displaystyle 8$% debentures at $\displaystyle 10$% discount)
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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.