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Accountancy · 2023 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2023 · Region 4 · Set 1 · Q19
On 1st April, $\displaystyle 2021$, Hitesh Ltd. took over assets of ₹ $\displaystyle 8,00,000$ and liabilities of ₹ $\displaystyle 40,000$ of Pranjal Ltd. at an agreed value of ₹ $\displaystyle 8,30$,000. Hitesh Ltd. paid the amount to Pranjal Ltd. as follows : (i) Gave an acceptance payable after $\displaystyle 3$ months for ₹ $\displaystyle 2,00,000$, and (ii) Issued $\displaystyle 10$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% to Pranjal Ltd. in satisfaction of the balance amount of purchase consideration. Pass the necessary journal entries to record the above transaction in the books of Hitesh Ltd.ORDisha Ltd. forfeited $\displaystyle 500$ shares of ₹ $\displaystyle 100$ each issued at $\displaystyle 10$% premium, ₹ $\displaystyle 90$ called up, on which the shareholders did not pay ₹ $\displaystyle 30$ per share on allotment (including premium) and first call of ₹ $\displaystyle 20$ per share. Out of these, $\displaystyle 300$ shares were reissued for ₹ $\displaystyle 80$ per share, fully paid up. Pass necessary journal entries for forfeiture and reissue of shares.
OR
Disha Ltd. forfeited $\displaystyle 500$ shares of ₹ $\displaystyle 100$ each issued at $\displaystyle 10$% premium, ₹ $\displaystyle 90$ called up, on which the shareholders did not pay ₹ $\displaystyle 30$ per share on allotment (including premium) and first call of ₹ $\displaystyle 20$ per share. Out of these, $\displaystyle 300$ shares were reissued for ₹ $\displaystyle 80$ per share, fully paid up. Pass necessary journal entries for forfeiture and reissue of shares.Marking-scheme solution
Books of Hitesh Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
$\displaystyle 2021$ Sundry Assets A/c Dr. $\displaystyle 8,00,000$
April $\displaystyle 1$ Goodwill A/c Dr. $\displaystyle 70,000$
To Sundry Liabilities A/c $\displaystyle 40,000$
To Pranjal Ltd. $\displaystyle 8,30,000$
(Assets acquired and Liabilities taken over,
from Pranjal Ltd.)
Page $\displaystyle 7$
$\displaystyle 2021$ Pranjal Ltd. Dr. $\displaystyle 2,00,000$
April $\displaystyle 1$ To Bills Payable A/c $\displaystyle 2,00,000$
(Bills Payable accepted for part payment of
purchase consideration)
$\displaystyle 2021$ Pranjal Ltd. Dr. $\displaystyle 6,30,000$
April $\displaystyle 1$ Discount on issue of debentures A/c Dr. $\displaystyle 70,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 7,00,000$
(Balance amount of purchase consideration
settled through issue of $\displaystyle 7,000$, $\displaystyle 10$%
debentures at a discount of $\displaystyle 10$%)
Working note:
No. of debentures issued= $\displaystyle 6,30,000$/$\displaystyle 90$ = $\displaystyle 7,000$ debentures
Q. (b) Disha Ltd. forfeited $\displaystyle 500$ shares of...............................
Ans.
Books of Disha Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
(i) Share Capital A/c Dr. $\displaystyle 45,000$
Securities Premium /
Securities Premium Reserve A/c Dr. $\displaystyle 5,000$
To Share Forfeiture A/c $\displaystyle 25,000$
To Calls in arrears A/c $\displaystyle 25,000$
($\displaystyle 500$ shares forfeited for non payment of
allotment and 1st call)
Alternatively,
Share Capital A/c Dr. $\displaystyle 45,000$
Securities Premium /
Securities Premium Reserve A/c Dr. $\displaystyle 5,000$
To Share Forfeiture A/c $\displaystyle 25,000$
To Share Allotment A/c $\displaystyle 15,000$
To Share First call A/c $\displaystyle 10,000$
($\displaystyle 500$ shares forfeited for non payment of
allotment and 1st call)
Page $\displaystyle 8$
(ii)
Bank A/c Dr. $\displaystyle 24,000$
Share Forfeiture A/c Dr. $\displaystyle 6,000$
To Share capital A/c $\displaystyle 30,000$
($\displaystyle 300$ shares reissued @ ₹$\displaystyle 80$, fully paid
up)
(iii) Share Forfeiture A/c Dr. $\displaystyle 9,000$
To Capital Reserve A/c $\displaystyle 9,000$
( Gain on reissue of $\displaystyle 300$ shares
transferred to capital reserve)
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.