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Accountancy · 2022 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2022 · Region 5 · Set 3 · Q4
Rad fey Ltd. took over assets of? 14,00,000 and liabilities of? 6,00,000 of Krishna Ltd. Rad fey Ltd. paid the purchase consideration by issuing…
Rad fey Ltd. took over assets of? $\displaystyle 14,00,000$ and liabilities of? $\displaystyle 6,00,000$ of Krishna Ltd. Rad fey Ltd. paid the purchase consideration by issuing $\displaystyle 10,000$, $\displaystyle 8$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 10$%. Pass necessary journal entries in the books of Rad fey Ltd.
Amay Ltd. invited applications for issuing $\displaystyle 10,000$, $\displaystyle 8$% debentures of $\displaystyle 100$ each. The amount was payable as follows : $\displaystyle 5$ $\displaystyle 30$ on application and ₹ $\displaystyle 70$ on allotment. The public applied for $\displaystyle 12,000$ debentures. Applications for $\displaystyle 8,000$ debentures were accepted in full, applications for $\displaystyle 3,000$ debentures were allotted $\displaystyle 2,000$ debentures and the remaining applications were rejected. All money was duly received. Pass the necessary journal entries in the books of the company for the above transactions.
Marking-scheme solution
Radhey Ltd.
Journal
Debit Credit
Date Particulars L.F.
Amount Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 14,00,000$
Goodwill A/c Dr. $\displaystyle 3,00,000$
To Sundry Liabilities A/c $\displaystyle 6,00,000$
To Krishna Ltd. A/c $\displaystyle 11,00,000$
(Being Assets and Liabilities of Krishna
Ltd. taken over)
Krishna Ltd. A/c Dr. $\displaystyle 11,00,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 10,00,000$
To Securities Premium Reserve A/c $\displaystyle 1,00,000$
(Being $\displaystyle 1,000$, $\displaystyle 8$% Debentures issued at
premium)
Q. (b) Amay Ltd. invited applications………….
Ans.
Amay ltd.
Journal
Date Particulars L.F. Debit Credit
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 3,60,000$
To Debenture Application A/c $\displaystyle 3,60,000$
(Receipt of Application money for
$\displaystyle 12,000$ Debentures)
Debenture Application A/c Dr. $\displaystyle 3,60,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 3,00,000$
To Debenture Allotment A/c $\displaystyle 30,000$
To Bank A/c $\displaystyle 30,000$
(Debenture Application money transfer
to Debenture A/c, excess credited to
Debenture Allotment and money
refunded on rejected application)
Debenture Allotment A/c Dr. $\displaystyle 7,00,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 7,00,000$
(Amount due on allotment on $\displaystyle 10,000$
Debentures)
Bank A/c Dr. $\displaystyle 6,70,000$
To Debenture Allotment A/c $\displaystyle 6,70,000$
(Debenture allotment money received)
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CBSE Class 12 Accountancy past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.