CBSE 2025, Set 2

Question

(a) KM Ltd. acquired assets worth ₹7,20,000 and took over liabilities of ₹2,00,000 of LS Ltd. for a purchase consideration of ₹ 9,60,000. KM Ltd. issued 12% debentures of ₹ 100 each at a discount of 4% in favour of LS Ltd. for payment of purchase consideration.
Pass necessary journal entries for the above transactions in the books of KM Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of KM Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | Sundry Assets A/c ...Dr. Goodwill A/c (Bal. figure) ...Dr.     To Sundry Liabilities A/c     To LS Ltd. (Assets acquired and liabilities taken over from LS Ltd.) | | 7,20,000 4,40,000 | 2,00,000 9,60,000 | | (ii) | LS Ltd. ...Dr. Discount on issue of Debentures A/c ...Dr.     To 12% Debentures A/c (Purchase consideration settled through issue of 10,000, 12% Debentures at a discount of 4%) | | 9,60,000 40,000 | 10,00,000 | *Working Note: Number of Debentures = 9,60,000 / 96 = 10,000 debentures.*

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Accountancy > Accounting For Companies > Issue Of Debentures

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