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Question 26 Chapter 9 of +2-Part-1
26. (Different Cases of Debentures issues for Purchase Consideration other the Cash)
X Ltd. Took over the assets of Rs. 3,00,000 and Liabilities of Rs. 10,000 of Y Ltd. For agreed purchase consideration of Rs. 2,70,000 to be satisfied by the issue of 15% Debentures of Rs. 100 each at 20% premium. Show the necessary journal entries in t Journal of X Ltd.
(b) Z. Ltd. Allotted 3,000 15% Debentures of Rs. 100 each at a discount of 10% to USA Ltd. For supplying Technical know-how. Give the necessary Journal entries.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| i | Sundry Assets A/c | Dr. | 3,00,000 | ||
| To Sundry Liabilities A/ c | 10,000 | ||||
| To Y Ltd. | 2,70,000 | ||||
| To Capital Reserve A/ c (WN) | 20,000 | ||||
| (Being the purchase of Assets & liabilities from Y Ltd. As per agreement dated) | |||||
| ii | Y Ltd. A/c | Dr. | 2,70,000 | ||
| To 15% Debenture A/c | 2,25,000 | ||||
| To Securities Premium Reserve A/c | 45,000 | ||||
| (Being the issue of 2250 debentures of Rs. 100 each at premium of 20%) | |||||
b) Z Ltd. Allotted 3,000 15% debentures of Rs. 100 each at a discount of 10% to USA Ltd. For supplying Technical know –how .give necessary journal entries
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| i | Technical Know-how A/c | Dr. | 2,70,000 | ||
| Discount on Debentures A/ c | 30,000 | ||||
| To 15% Debenture A/c | 3,00,000 | ||||
| (Being technical know-how purchased & payment made by issue of debentures at 10 % discount.) | |||||
Working Note :-
Capital Reserve = (Assets –Liabilities ) – Purchase Consideration
(3,00,000-10,000)-2,70,000 = ₹ 20,000
It all about Question 26 Chapter 9 of +2-Part-1, If you have any problem please comment below.
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 26 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter No. 9 - Company Accounts (Issue of Debentures).
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 26 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1" instantly.
