CBSE 2023 · Region 2 · Set 3 · Q20

Sinco Ltd. purchased assets of the book value of ₹ $\displaystyle 1,98,000$ from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing $\displaystyle 10$% debentures of ₹ $\displaystyle 100$ each. Record the necessary journal entries in the books of Sinco Ltd. assuming that the debentures have been issued : (i) At a discount of $\displaystyle 10$%. (ii) At a premium of $\displaystyle 10$%.

OR

On $\displaystyle 1.4.2021$ Y Ltd. invited applications for issuing $\displaystyle 10,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 6$%. The entire amount was payable with application. Application for $\displaystyle 12,000$, $\displaystyle 9$% debentures were received. $\displaystyle 9$% debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded. On $\displaystyle 31.3.2022$ the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013. On that date the company had ₹ $\displaystyle 10,000$ in its securities premium reserve account. Pass necessary journal entries for the above transactions in the books of the company.