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VDO+ Tag:Question 20 Chapter 9 of Class 12 Part – 2 – 2024
20. (Purchase of Business/Goodwill/Issue at Par/Premium Discount) A company purchased assets of the book value of Rs. 4,00,000 and took over liabilities of Rs. 50,000 from Dalal Bros. It was agreed that the purchase consideration settled at Rs. 3,80,000 be paid by issuing debentures of 100 each. What journal entries will be made in all the three following cases if debentures are issued (a) at par (b) at a discount of 10% and (c) at a premium of 10%. It was agreed that any fraction of the debentures be paid in cash.
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Video Tag:The solution of Question 20 Chapter 9 of Class 12 Part – 2 – 2024: –
We are providing a solution of Question 20 Chapter 9 of Class 12 Part – 2 – 2024 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
1. Check out the Solution of this question in Video Format:-
The video consists solution of question numbers from 17 to 20 Chapter no. 9 class 12 of Usha publication. To check the direct solution of question no. 20 from the following video by using time stamps of the video.
2. Check out the Solution of Question 20 Chapter 9 of Class 12 Part – 2 – 2024 in Article Format:-
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| i | Sundry Assets A/c | Dr. | 4,00,000 | ||
| Goodwill A/c | Dr. | 30,000 | |||
| To Sundry Liabilities A/ c | 50,000 | ||||
| To Dalal’s Bros. | 3,80,000 | ||||
| (Being th purchase of the business of Dalal Bros for a purchase consideration of Rs. 3,80,000) | |||||
Case I. Issue of debentures at par
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| Dalal Bros. | Dr. | 3,80,000 | |||
| To Debenture A/c | 3,80,000 | ||||
| (Being issue of debentures at par in payment of purchase consideration) | |||||
Case II. Issue of debentures at discount of 10%
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| Dalal Bros. | Dr. | 3,80,000 | |||
| Discount on issues of Debenture A/ c | Dr. | 42,220 | |||
| To Debenture A/c | 4,22,200 | ||||
| To Bank A/c | 20 | ||||
| (Being issue of debentures at a discount of 10 % in part payment of purchase consideration , balance being paid in cash) | |||||
Case III. Issue of Debentures at a premium of 10%
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| Dalal Bros. | Dr. | 3,80,000 | |||
| To Debenture A/c | 3,45,400 | ||||
| To Premium on issues of Debenture A/ c | 34,540 | ||||
| To Bank A/c | 60 | ||||
| (Being issue of debentures worth Rs. 3,45,400 at a premium of 10 % in part payment of purchase consideration , balance being paid in cash) | |||||
Working Notes :
1. Since debentures at 10% discount , its one debentures of ₹ 100 is worth ₹ 90 .
For making a payment of ₹ 90, the company issue 1 debenture. For making payment of ₹ 3,80,000 the company issues = 3,80,000 / 90 = 4,222.22 debentures.
As it is not passible to issue debentures in fractions , the company issues only 4,222 debentures of ₹ 100 each At a discount of 10% . For the fractions of debentures the company pays cash.
2. since debentures are issued at 10% premium ,its one debentures of ₹ 100 is worth ₹ 110
Thus, for making payment of ₹ 110 , the company issues 1 debentures
For making payments of ₹ 380,000 the company issues 3,80,000/110 = 3,454.54 debentures.
Since it is not possible to debentures in fraction the company issues only 3,453 debentures of ₹ 100 each at 10% premium. For the fraction of debentures, the company pays cash.
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication