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Q. 14. Amrit Ltd. was promoted by Amrit and Bhaskar with an authorised, capital of % 10,00,000 divided into 1,00,000 shares of € 10 each., , The company decided to issue 1,000, 6% Debentures of € 100 each to Amrit, and Bhaskar each for their services in incorporating the company., , Pass Journal entry., , Sol. Journal, , , , , , , , , , , Incorporation Expenses A/c, To 6% Debentures A/c [1,000 2 = 100], (Being 6% Denbentures issued to pramotors, for their Services), , Q. 15. 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 C), , Sol., , , , , , , , , , ‘Plant A/c, To Vendor A/c, , (Being Plant purchased), Vendor’s A/c, To 9% Debentures A/c (5,000 = 100), , To Sec. Prem. Res. A/c [5,00,900 x 20%], (Being issue of 9% Deb. at 20% Prem.), , Worning Note :, , , , , , , , , 6,00,000, 5,00,000, 1,00,000, , , , 6,00,000, No. of Debentures = 100 +20% = 5,000 Debentures, , Q. 16. 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., , Sol. Journal Entries, , , , , , , , , , Business Purchase A/c, To Vendors Account, (Being Business Purchased), , Vendors A/c Dr., To Bank Account, , (Being cheque paid to vendor), , Vendors A/c Dr., , Discount on Issue of Debenture A/c Dr., To 9% Debenture A/c, , (Being 1500 debenture issue to vendor and, account settled, , 2,00,000, , 65,000, , , , , , , , , , , 1,35,000, 15,000, , , , 1,50,000
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Q. 17. 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., , , , , , , , , , , , , , , , , , , Sol. Journal Entries, Date Particulars Cr. (®), Machinery A/c Dr. 1,35,000, To Vendor’s A/c 1,35,000, (Being Machinery Acquired), () | Vendor’s A/c Dr. 1,35,000, To 9% Debentures A/c (1,350 x100) 1,35,000, (No. of shares issued = 1,35,000/100 = 1,350), | (Being 1350 Debent. issued and account settled), (1) | Vendors A/c Dr. 1,35,000, Discount on Issue of Debenture A/c Dr. 15,000, To 9% Debenture A/c 1,50,000, (Being 150 debenture issue at discount of 10%), , , , , , Q. 18. 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 ata, discount of 10% as purchase consideration., , Record necessary Journal entries in the books of Romi Ltd., Sol. Journal Entries, , Date | Particulars, , Assets A/c Dr. 20,00,000, To Creditors A/c 2,00,000, , To Kapil Enterprise A/c 8,00,000, (Being purchased of Asset and Liabilities), , , , , , , , , , , , , , , , , Kapil Enterprise A/c Dr. 18,00,000, , Discourt on issue of debenture A/c Dr. 2,00,000, To 8% Debentures A/c 0,00,000, 18,00,000, , (No. of debentures issued 99. = 20,000, , debentures)
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(a) | Mohan Bros. A/c Dr., To Debentures A/c (3,800 x 100), , (Being debentures issued to Mohan Bros at par), , , , , , , , , 3,80,000, 3,80,000, , , , , , , , , , (b) | MohanBros.. A/c Dr. 3,80,000, To Debentures A/c (3,454 x 100) 3,45,400, To Securities Premium Res. A/c(3,454 x 10) 34,540, To Cash Account (Balance figures) 60, , (Being debent. issued to Mohan Bros. at Prem.), No of debentutes issued = 3,80,000/110 = 3,454, , Q. 20. Rama Ltd. took over following assets and liabilities of Krishna Ltd. on, , 1st April, 2019: z, Land and Building 50,00,000, Stock 5,00,000, Creditors 7,00,000, , The purchase consideration of € 60,00,000 was paid by issuing 12%, Debentures of € 100 each at a premium of 20%., , Pass the necessary Journal entries for the above in the books of Rama Ltd., , (CBSE 2020), Sol. Working Note:, % 6,00,000, () No. of Debentures = "400+20% 720-000 Debentures., Journal, , , , , , , , , , , , , Land & Building A/c Dr., Furniture A/c Dr., Stock A/c Dr., Goodwill A/c (Bal. fig.) Dr., To Sundry creditors A/c, To Krishna Ltd. A/c, (Being Sundry assets & Liab. taken over), , Krishna Ltd. A/c Dr., To 12% Debentures A/c (50,000 « 100), To Sec. Prem. Res. A/c (50,000 x 20), , (Being amt. of Purch. consi. paid by 12% Deb.), , Q. 21. Green Ltd. purcahsed the assets of strong Ltd. for € 40,00,000 and took, over liabilities of T 7,00,000 at an agreed value € 32,40,000. Payment was made, , by issuing 10% Debentures of € 100 each at a discount of 10%. Pass the necessary, Journal entries in the books of Green Ltd., , Sol. Working Note : (i) Amt. of Capital Reserve, = TF [40,00,000 — (32,40,000) + 7,00,000)] = € 60,000, , %32,40,000, (a) _ No. of Debentures issued : = “Jo0-10% = 26,000 Deb.
