✓ Board-verified
Accountancy · 2024 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2024 · Region 3 · Set 1 · Q19
Sumi Ltd. acquired assets of ₹ 8,00,000 and took over sundry creditors of ₹ 2,00,000 from Pandora Ltd. for a purchase consideration of ₹ 9,00,000.…
Sumi Ltd. acquired assets of ₹ $\displaystyle 8,00,000$ and took over sundry creditors of ₹ $\displaystyle 2,00,000$ from Pandora Ltd. for a purchase consideration of ₹ $\displaystyle 9,00$,000. The payment was made by issuing a cheque of ₹ $\displaystyle 4,60,000$ and remaining by issue of $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%. Pass necessary journal entries for the above transactions in the books of Sumi Ltd.
Gundola Ltd. took over assets of ₹ $\displaystyle 9,00,000$ and liabilities of ₹ $\displaystyle 3,00,000$ from AK Ltd. for an agreed purchase consideration of ₹ $\displaystyle 14,00$,000. The payment was made through a bank draft of ₹ $\displaystyle 5,00,000$ and the remaining by issue of $\displaystyle 8$% Debentures at a discount of $\displaystyle 10$%. Record necessary journal entries in the books of Gundola Ltd. for the above transactions.
Marking-scheme solution
Books of Sumi Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
(i)
Sundry Assets A/c Dr. $\displaystyle 8,00,000$
Goodwill A/c Dr. $\displaystyle 3,00,000$
To Sundry Creditors A/c $\displaystyle 2,00,000$
To Pandora Ltd.. $\displaystyle 9,00,000$
(Business of Pandora Ltd.. taken over
at ₹$\displaystyle 9,00$,000.)
(ii)
Pandora Ltd. Dr. $\displaystyle 9,00,000$
To Bank A/c $\displaystyle 4,60,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 4,00,000$
To Securities Premium A/c $\displaystyle 40,000$
(Paid Pandora Ltd. ₹$\displaystyle 4,60,000$ by
cheque and issued $\displaystyle 4,000$,
$\displaystyle 9$% Debentures of ₹$\displaystyle 100$ each at a
premium of $\displaystyle 10$%.)
Alternative
(ii)
a. Pandora Ltd. Dr. $\displaystyle 4,60,000$
To Bank A/c $\displaystyle 4,60,000$
(Paid Pandora Ltd. ₹$\displaystyle 4,60,000$ by
Cheque.)
(ii)
b. Pandora Ltd. Dr. $\displaystyle 4,40,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 4,00,000$
To Securities Premium A/c $\displaystyle 40,000$
($\displaystyle 4,000$, $\displaystyle 9$% Debentures of ₹$\displaystyle 100$
each issued at a premium of
Q. Gundola Ltd. took over assets ………………………………..
Ans.
Books of Gundola Ltd.
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
(i)
Sundry Assets A/c Dr. $\displaystyle 9,00,000$
Goodwill A/c Dr. $\displaystyle 8,00,000$
To Sundry Liabilities A/c $\displaystyle 3,00,000$
To AK Ltd. $\displaystyle 14,00,000$
(Business of AK Ltd. taken over at
₹$\displaystyle 14,00$,000.)
(ii)
AK Ltd. Dr. $\displaystyle 14,00,000$
Discount on Issue of Debentures A/c Dr. $\displaystyle 1,00,000$
To Bank A/c $\displaystyle 5,00,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 10,00,000$
(Paid AK Ltd. ₹$\displaystyle 5,00,000$ through a bank
draft and issued $\displaystyle 10,000$ $\displaystyle 8$% Debentures
of ₹$\displaystyle 100$ each at a discount of $\displaystyle 10$%.)
Alternative
(ii)
a. AK Ltd. Dr. $\displaystyle 5,00,000$
To Bank A/c $\displaystyle 5,00,000$
(Paid AK Ltd. ₹$\displaystyle 5,00,000$ by cheque.)
(ii)
b. AK Ltd. Dr. $\displaystyle 9,00,000$
Discount on Issue of Debentures A/c Dr. $\displaystyle 1,00,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 10,00,000$
($\displaystyle 10,000$, $\displaystyle 8$% Debentures of ₹$\displaystyle 100$ each
issued at a discount of $\displaystyle 10$%.)
All Issue and Redemption of Debentures questions2024 question paperPractice Issue and Redemption of Debentures →
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 purchase consideration of ₹ 12,60,000. It…2024
- Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called:2025
- Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10%…2023
- On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total amount of interest due on debentures for…2024
- Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from Gurnam Ltd. for a purchase consideration…2022
- Shivalik Ltd. issued 7% debentures of 2 100 each at a discount of 5% on 1st April, 2023. Discount on issue of debentures, ₹ 1,00,000 was completely…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 debenture holders are entered in a register…2025
CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.