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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 2 · Q6
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.