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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 1 · Set 3 · Q19
Sunrise Ltd. acquired assets of ₹ $\displaystyle 3,60,000$ and took over creditors of ₹ $\displaystyle 1,00,000$ from Moonlight Ltd. for an agreed purchase consideration of ₹ $\displaystyle 4,80$,000. Sunrise Ltd. issued $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 4$% in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Sunrise Ltd. Show your workings clearly.ORGrapple Ltd. took over assets of ₹ $\displaystyle 25,00,000$ and liabilities of ₹ $\displaystyle 5,00,000$ from Allore Ltd. for an agreed purchase consideration of ₹ $\displaystyle 18,00$,000. Grapple Ltd. issued $\displaystyle 11$% Debentures of ₹ $\displaystyle 100$ each at $\displaystyle 20$% premium in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Grapple Ltd. Show your workings clearly.
OR
Grapple Ltd. took over assets of ₹ $\displaystyle 25,00,000$ and liabilities of ₹ $\displaystyle 5,00,000$ from Allore Ltd. for an agreed purchase consideration of ₹ $\displaystyle 18,00$,000. Grapple Ltd. issued $\displaystyle 11$% Debentures of ₹ $\displaystyle 100$ each at $\displaystyle 20$% premium in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Grapple Ltd. Show your workings clearly.Marking-scheme solution
In the books of Sunrise Ltd.
JOURNAL
Date Particulars L.F Dr. Amount Cr. Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 3,60,000$
Goodwill A/c Dr. $\displaystyle 2,20,000$
To Creditors A/c $\displaystyle 1,00,000$
To Moonlight Ltd $\displaystyle 4,80,000$
(Assets acquired and liabilities
taken over from Moonlight
Ltd)
_________________________
$\displaystyle 4,80,000$
Moonlight Ltd. Dr.
Discount on Issue of
$\displaystyle 20,000$
Debentures A/c Dr.
$\displaystyle 5,00,000$
To $\displaystyle 9$% Debentures A/c
(Purchase consideration settled
by issuing $\displaystyle 5,000$ $\displaystyle 9$%
debentures at $\displaystyle 4$% discount)
_________________________
Working Note:
No. of debentures = (Purchase Consideration) / Issue Price
= $\displaystyle 4,80,000$/ $\displaystyle 96$
= $\displaystyle 5,000$
Q. Grapple Ltd. took over assets of ₹$\displaystyle 25,00,000$…..
Ans. In the books of Grapple Ltd.
JOURNAL
Date Particulars L.F Dr. Amount Cr. Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 25,00,000$
To Liabilities A/c $\displaystyle 5,00,000$
To Allore Ltd $\displaystyle 18,00,000$
To Capital Reserve A/c $\displaystyle 2,00,000$
(Assets acquired and
liabilities taken over from
Allore Ltd)
_______________________
Allore Ltd. Dr.
To $\displaystyle 11$% Debentures A/c
$\displaystyle 18,00,000$
To Securities Premium A/c
$\displaystyle 15,00,000$
(Purchase consideration
$\displaystyle 3,00,000$
settled by issuing $\displaystyle 15,000$
$\displaystyle 11$% debentures at $\displaystyle 20$%
premium)
______________________
Working Note:
No. of debentures = (Purchase Consideration) / Issue Price
= $\displaystyle 18,00,000$/ $\displaystyle 120$
= $\displaystyle 15,000$
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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.