Question 16:
Amrit Ltd . issue 1,000, 6% Debentures
of ` 100 each to Amrit and
Bhaskar (Promotors) each
for their services in incorporating the company.
Pass journal entry.
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
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Incorporation Cost A/c (2,000 ×
100) |
Dr. |
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2,00,000 |
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To 6% Debentures A/c |
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2,00,000 |
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( Debentures issued to promoters) |
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Question 17: B Ltd. issued 9% Debentures of ` 100 each at a premium
of 20% to Vendors for purchase of plant costing ` 6,00,000.
Pass the necessary Journal entry for the payment
made to vendors. (CBSE 2020)
Answer:
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Books of B Ltd. |
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Journal |
|||||
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Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
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|
Plant
A/c |
Dr. |
|
6,00,000 |
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To Vendor’s A/c |
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6,00,000 |
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(Being
purchase of plant) |
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Vendor’s
A/c Dr. |
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6,00,000 |
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To 9% Debentures A/c |
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5,00,000 |
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To Securities Premium
Reserve A/c |
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1,00,000 |
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(Being
9% Debentures issued of ` 100
each at a premium of 20% to Vendors for purchase of plant costing ` 6,00,000 at `120) |
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Question 18:
AnanyaLtd . purchased an established
business for ` 2,00,000 payable as ` 65,000 by cheque and
the balance by issuing 9% Debentures of ` 100 each at a discount of 10%.
Give journal entries in the books of Wye Ltd.
Answer:
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Books of AnanyaLtd. |
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Journal |
|||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Sundry
Assets A/c |
Dr. |
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2,00,000 |
|
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To Vendor A/c |
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2,00,000 |
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(Business
purchased) |
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Vendor
A/c |
Dr. |
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65,000 |
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To Bank A/c |
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65,000 |
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(Amount
paid to Vendor in cash) |
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Vendor
A/c |
Dr. |
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1,35,000 |
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Discount
on Issue of Debentures A/c |
Dr. |
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15,000 |
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To 9% Debentures A/c |
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1,50,000 |
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(Issued
1,500 debentures at 10% discount) |
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Working Note:
Number of debentute to be issued= Purchase consideration/issue
price=1,35,000/90=1,500 Debentures
Question 19:
Reliance
Ltd. purchased machinery costing ` 1,35,000 . It was agreed that the purchase consideration be paid by issuing 9%
Debentures of ` 100 each . Assume debentures have been issued
(i) at par and
(ii)at a discount of 10%.
Give necessary journal entries.
Answer:
Case 1
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Books of Reliance Ltd. |
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Journal |
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
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|
Machinery
A/c |
Dr. |
|
1,35,000 |
|
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To Vendor A/c |
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1,35,000 |
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|
(Machinery
Purchases) |
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Vendor
A/c |
Dr. |
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1,35,000 |
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To 9% Debenture A/c |
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1,35,000 |
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(Issued
1,350 debentures at par) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price =1,35,000/100=1,350 Debentures
Case 2
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Journal |
|||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Machinery
A/c |
Dr. |
|
1,35,000 |
|
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To Vendor A/c |
|
|
1,35,000 |
|
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|
(Machinery
purchased) |
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Vendor
A/c |
Dr. |
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1,35,000 |
|
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Discount
on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
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To 9% Debenture A/c |
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|
1,50,000 |
|
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(Issued
1,500 debentures at 10% discount) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price =1,35,000/=1,500 Debentures
Question 20:
Romi Ltd.
acquired assets of `20
lakhs and took over creditors of `2 lakhs from Kapil Enterprises.
Romi Ltd. issued 8% Debentures
of `100 each at a discount of 10% as purchase
consideration.
Record necessary journal entries in the books of Romi Ltd.
Answer:
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Books of Romi Ltd. |
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Journal |
|||||
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Assets
A/c |
Dr. |
|
20,00,000 |
|
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To Creditors A/c |
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2,00,000 |
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To Kapil
Enterprises |
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18,00,000 |
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|
(Assets
purchased and Creditors took over from Kapil
Enterprises) |
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Kapil
Enterprises |
Dr. |
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18,00,000 |
|
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Discount
on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
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To 8% Debentures A/c |
|
|
20,00,000 |
|
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|
(Issued
20,000 8% Debentures of ` 100
each at discount of 10% to Kapil Enterprises) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price =18,00,000/100-10
=18,00,000/90=20,000 Debentures
Ts Grewal Solution 2024-2025
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Class 12 / Volume – 2