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Accountancy · 2022 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2022 · Region 3 · Set 2 · Q6
X Ltd. purchased assets of ₹ 18,00,000 and took over liabilities of ₹ 6,00,000 of Y Ltd. for a purchase consideration of ₹ 10,00,000. The payment to…
X Ltd. purchased assets of ₹ $\displaystyle 18,00,000$ and took over liabilities of ₹ $\displaystyle 6,00,000$ of Y Ltd. for a purchase consideration of ₹ $\displaystyle 10,00$,000. The payment to Y Ltd. was made by issue of $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at ₹ 125. Calculate the number of $\displaystyle 9$% debentures issued in favour of Y Ltd. and pass the necessary journal entries for the above transactions in the books of X Ltd.
Pass necessary journal entries in the books of Z Ltd. for the following transactions : (a) Z Ltd. invited applications for issuing $\displaystyle 10,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a premium of ₹ $\displaystyle 10$ per debenture. The full amount was payable on application. Applications were received for $\displaystyle 15,000$ debentures. Applications for $\displaystyle 3,000$ debentures were rejected and the applications money was refunded. Debentures were allotted to the remaining applicants on a prorata basis. (b) The company has a balance of ₹ $\displaystyle 60,000$ in securities premium reserve account. Loss on issue of debentures ₹ $\displaystyle 1,00,000$ was written off as per the provisions of the Companies Act 2013.
Marking-scheme solution
X Ltd.
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 18,00,000$
To Sundry Liabilities A/c $\displaystyle 6,00,000$
To Y Ltd. A/c $\displaystyle 10,00,000$
To Capital Reserve A/c $\displaystyle 2,00,000$
(Acquired assets and liabilities from
Y Ltd.)
Y Ltd. A/c Dr. $\displaystyle 10,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 8,00,000$
To Securities Premium Reserve A/c $\displaystyle 2,00,000$
(Issued $\displaystyle 9$% debentures in favour
of X Ltd.)
Working Note
$\displaystyle 10,00,000$
No. of Debentures issued in favour of Y Ltd. = = $\displaystyle 8000$
$\displaystyle 125$
Or
Q. Pass necessary journal entries in the books of Z Ltd……………
Ans.
Z Ltd.
Journal
Date Particulars L.F. Debit Credit
Amount Amount
(₹) (₹)
(a) Bank A/c Dr. $\displaystyle 16,50,000$
To Debenture Application $\displaystyle 16,50,000$
and Allotment A/c
(Debenture application money
received)
Debenture Application and
Allotment A/c Dr. $\displaystyle 16,50,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 10,00,000$
To Securities Premium Reserve A/c $\displaystyle 1,00,000$
To Bank A/c
$\displaystyle 5,50,000$
(Allotment of $\displaystyle 10,000$ debentures and
refund of excess application money
on $\displaystyle 5,000$ debentures)
Securities Premium Reserve A/c Dr. $\displaystyle 60,000$
(b)
Statement of Profit &Loss Dr. $\displaystyle 40,000$
To Loss on issue of Debentures A/c $\displaystyle 1,00,000$
(Loss on issue of debentures written
off.)
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CBSE Class 12 Accountancy past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.