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Accountancy · 2026 · 3 marks
CBSE 2026 · Region 1 · Set 1 · Q19
Raunak Cotton Ltd. purchased machinery of ₹ 6,80,000 from Heavy Machines Ltd. The Payment to Heavy Machines Ltd. was made by issuing 10,500 equity…
Raunak Cotton Ltd. purchased machinery of ₹ $\displaystyle 6,80,000$ from Heavy Machines Ltd. The Payment to Heavy Machines Ltd. was made by issuing $\displaystyle 10,500$ equity shares of ₹ $\displaystyle 50$ each at a premium of $\displaystyle 20$% and the balance through a cheque. Pass necessary journal entries for the above transactions in the books of Raunak Cotton Ltd.
Neo Ltd. took over assets of ₹ $\displaystyle 25,00,000$ and liabilities of ₹ $\displaystyle 12,00,000$ of Madura Ltd. for a purchase consideration of ₹ $\displaystyle 18,00$,000. Neo Ltd. issued $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% in full satisfaction of the purchase consideration. Pass necessary journal entries for the above transactions in the books of Neo Ltd.
Marking-scheme solution
Books of Raunak Cotton Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Machinery A/c Dr. $\displaystyle 6,80,000$
To Heavy Machines Ltd. $\displaystyle 6,80,000$
(Machinery purchased from Heavy Machines Ltd.)
Heavy Machines Ltd. Dr. $\displaystyle 6,80,000$
To Equity Share Capital A/c $\displaystyle 5,25,000$
To Securities Premium A/c $\displaystyle 1,05,000$
To Bank A/c $\displaystyle 50,000$
(Paid Heavy Machines Ltd. by issue of equity shares at
a premium and the balance through a cheque)
Alternatively the following two entries may be passed-
Heavy Machines Ltd. Dr. $\displaystyle 6,30,000$
To Equity Share Capital A/c $\displaystyle 5,25,000$
To Securities Premium A/c $\displaystyle 1,05,000$
(Paid Heavy Machines Ltd. by issue of equity shares at
a premium)
Heavy Machines Ltd. Dr. $\displaystyle 50,000$
To Bank A/c $\displaystyle 50,000$
(Balance due to Heavy Machines Ltd. paid through a
cheque)
Q. (b) Neo Ltd. took over assets of ₹$\displaystyle 25,00,000$…
Ans.
Books of Neo Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Assets A/c Dr. $\displaystyle 25,00,000$
Goodwill A/c Dr. $\displaystyle 5,00,000$
To Liabilities A/c $\displaystyle 12,00,000$
To Madura Ltd. $\displaystyle 18,00,000$
(Assets and liabilities of Madura Ltd. taken over)
Madura Ltd. Dr. $\displaystyle 18,00,000$
Discount on issue of debentures A/c Dr. $\displaystyle 2,00,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 20,00,000$
(Paid Madura Ltd. by issue of $\displaystyle 20,000$ debentures at a
discount of $\displaystyle 10$%)
.
Working Note:
Number of debentures= ₹$\displaystyle 18,00,000$/ $\displaystyle 90$ = $\displaystyle 20,000$
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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.