CBSE 2025, Set 3

Question

(b) Sky Ltd. took over assets of ₹ 20,00,000 and liabilities of ₹ 4,00,000 of Cloud Ltd. for a purchase consideration of ₹ 15,00,000. Sky Ltd. issued 8% Debentures of ₹ 100 each at a premium of 25% in full satisfaction of purchase consideration.

Pass necessary journal entries in the books of Sky Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Sky Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Assets A/c ...Dr.     To Liabilities A/c     To Cloud Ltd.     To Capital Reserve A/c (Balancing figure) (Assets and liabilities of Cloud Ltd. taken over) | | 20,00,000 | 4,00,000 15,00,000 1,00,000 | | | Cloud Ltd. ...Dr.     To 8% Debentures A/c     To Securities Premium A/c (Issue of 12,000 debentures at a premium of 25%) | | 15,00,000 | 12,00,000 3,00,000 | *Working Note: Number of Debentures to be issued = Purchase Consideration / Issue Price = 15,00,000 / 125 = 12,000 Debentures.*

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Accountancy > Accounting For Companies > Issue Of Debentures

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