✓ Board-verified
Accountancy · 2025 · 3 marks
CBSE 2025 · Region 7 · Set 2 · Q18
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.ORRoshni 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.
OR
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
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)
Q. (a) Bharat and Ishu were partners……….
More from Issue and Redemption of Debentures
- Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed…2024
- Debentures which can be transferred by way of delivery and the company does not keep any record of the…2025
- Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase…2023
- On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total…2024
- Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from…2022
- Shivalik Ltd. issued 7% debentures of 2 100 each at a discount of 5% on 1st April, 2023. Discount on issue of…2025
- The debentures which do not carry a specific rate of interest are called:2024
- Debentures in respect of which all details including names, addresses and particulars of holding of the…2025
CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.