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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 5 · Set 1 · Q20
Vimal Ltd. purchased assets worth ₹ 5,00,000 and took over liabilities of ₹ 1,00,000 of Kapil Ltd. for a purchase consideration of ₹ 4,50,000. Vimal…
Vimal Ltd. purchased assets worth ₹ $\displaystyle 5,00,000$ and took over liabilities of ₹ $\displaystyle 1,00,000$ of Kapil Ltd. for a purchase consideration of ₹ $\displaystyle 4,50$,000. Vimal Ltd. paid one third of the amount by cheque and balance was settled by issuing $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 20$% . Pass necessary journal entries in the books of Vimal Ltd. for the above transactions.
Marking-scheme solution
Books of Vimal Ltd
JOURNAL
Date Particulars L.F. Dr. Cr.
Amount ( ₹) Amount ( ₹)
Assets A/c Dr. $\displaystyle 5,00,000$
Goodwill A/c Dr. $\displaystyle 50,000$
To Liabilities A/c $\displaystyle 1,00,000$
To Kapil Ltd. $\displaystyle 4,50,000$
(business of Kapil Ltd. taken over at
₹$\displaystyle 4,50,000$)
Kapil Ltd Dr. $\displaystyle 1,50,000$
To Bank A/c $\displaystyle 1,50,000$
(paid Kapil Ltd ₹$\displaystyle 1,50,000$ by cheque)
$\displaystyle 3,00,000$
Kapil Ltd Dr.
$\displaystyle 2,50,000$
To $\displaystyle 11$% Debentures A/c
$\displaystyle 50,000$
To Securities Premium A/c or
Securities Premium Reserve A/c
($\displaystyle 2,500$ debentures of ₹$\displaystyle 100$ each issued
at a premium of $\displaystyle 20$%)
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.