Question 16:
Joy
Ltd. company bought a Building for ₹ 9,00,000
and the consideration was paid by issuing 10% Debentures of the normal (face)
value of ₹ 100 each at a discount of 10%.
Give Journal entries.
Answer:
|
Books of Joy Limited |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
Building
A/c |
Dr. |
|
9,00,000 |
|
|
|
To Vendor A/c |
|
|
9,00,000 |
|
|
|
(Building
purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor
A/c |
Dr. |
|
9,00,000 |
|
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To 10% Debentures A/c |
|
|
10,00,000 |
|
|
|
(Issued
10,000, 10% debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
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|
Working Note:
Number of debentute to be issued= Purchase
consideration/issue price=9,00,000/90=10,000 Debentures
Question 17:
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:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
|
|
|
|
|
|
|
Incorporation Cost A/c (2,000 ×
100) |
Dr. |
|
2,00,000 |
|
|
|
To 6% Debentures A/c |
|
|
|
2,00,000 |
|
|
( Debentures issued to promoters) |
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Question
18: 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:
|
Books of B Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Plant
A/c |
Dr. |
|
6,00,000 |
|
|
|
To Vendor’s A/c |
|
|
6,00,000 |
|
|
|
(Being
purchase of plant) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor’s
A/c Dr. |
|
6,00,000 |
|
|
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
|
To Securities Premium
Reserve A/c |
|
|
1,00,000 |
|
|
|
(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 19:
Ananya Ltd . 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:
|
Books of AnanyaLtd. |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Sundry
Assets A/c |
Dr. |
|
2,00,000 |
|
|
|
To Vendor A/c |
|
|
2,00,000 |
|
|
|
(Business
purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor
A/c |
Dr. |
|
65,000 |
|
|
|
To Bank A/c |
|
|
65,000 |
|
|
|
(Amount
paid to Vendor in cash) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor
A/c |
Dr. |
|
1,35,000 |
|
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
|
To 9% Debentures A/c |
|
|
1,50,000 |
|
|
|
(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 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:
|
Books of Romi Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Assets
A/c |
Dr. |
|
20,00,000 |
|
|
|
To Creditors A/c |
|
|
2,00,000 |
|
|
|
To Kapil
Enterprises |
|
|
18,00,000 |
|
|
|
(Assets
purchased and Creditors took over from Kapil
Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kapil Enterprises |
Dr. |
|
18,00,000 |
|
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
|
To 8% Debentures A/c |
|
|
20,00,000 |
|
|
|
(Issued
20,000 8% Debentures of ₹ 100 each at discount of 10% to Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
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 2025-2026
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Class 12 / Volume – 2