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Accountancy · 2024 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2024 · Region 3 · Set 2 · Q20
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.ORGundola 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.
OR
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 $\displaystyle 40,000$
`$\displaystyle 4,60,000$
(Paid Pandora Ltd. 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
$\displaystyle 10$%.)
OR
(b) 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 $\displaystyle 10$%.)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.