CBSE 2025, Set 1

Question

(a) Delight Ltd. purchased assets worth ₹ 4,00,000 and took over liabilities of ₹ 70,000 of Marvel Ltd. for a purchase consideration of ₹ 3,60,000. Delight Ltd. paid the purchase consideration by issuing 11% debentures of ₹ 100 each at a premium of 20%.

Pass necessary journal entries in the books of Delight Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Journal Entries (Books of Delight Ltd.):** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Assets A/c ...Dr. Goodwill A/c (Balancing figure) ...Dr.     To Liabilities A/c     To Marvel Ltd. (Assets and liabilities of Marvel Ltd. taken over) | | 4,00,000 30,000 | 70,000 3,60,000 | | | Marvel Ltd. ...Dr.     To 11% Debentures A/c     To Securities Premium A/c (Issue of 3,000 debentures at a premium of 20%) | | 3,60,000 | 3,00,000 60,000 | *Working Note: Number of Debentures to be issued = Purchase Consideration / Issue Price = 3,60,000 / 120 = 3,000 Debentures.*

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Accountancy > Accounting For Companies > Issue Of Debentures

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