Question:
Gundola Ltd. took over assets of ₹ 9,00,000 and liabilities of ₹ 3,00,000 from AK Ltd. for an agreed purchase consideration of ₹ 14,00,000. The payment was made through a bank draft of ₹ 5,00,000 and the remaining by issue of 8\% Debentures at a discount of 10\%.
Record necessary journal entries in the books of Gundola Ltd. for the above transactions.
Gundola Ltd. took over assets of ₹ 9,00,000 and liabilities of ₹ 3,00,000 from AK Ltd. for an agreed purchase consideration of ₹ 14,00,000. The payment was made through a bank draft of ₹ 5,00,000 and the remaining by issue of 8\% Debentures at a discount of 10\%.
Record necessary journal entries in the books of Gundola Ltd. for the above transactions.
Record necessary journal entries in the books of Gundola Ltd. for the above transactions.
Show Hint
For transactions involving asset purchases with securities issued at a discount:
1. Record assets and liabilities taken over.
2. Record the payment through bank and debentures issued at a discount.
3. Account for the discount on debentures as a separate account.
Updated On: Jan 18, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
\[
\begin{array}{|l|l|r|r|}
\hline
Date & Particulars & Dr (₹) & Cr (₹)
\hline \text{2023} & & &
\text{April 1} & Assets A/c & 9,00,000 &
& Liabilities A/c & 3,00,000 &
& To AK Ltd. A/c & & 14,00,000
& \textit{(Being purchase of assets and assumption of liabilities from AK Ltd.)} & &
\hline \text{April 1} & AK Ltd. A/c & 14,00,000 &
& To Bank A/c & & 5,00,000
& To 8\% Debentures A/c & & 8,40,000
& To Discount on Issue of Debentures A/c & & 60,000
& \textit{(Being payment made partly in cash and balance through issuance of 8\% Debentures at a 10\% discount)} & &
\hline \end{array} \] \normalsize
\hline \text{2023} & & &
\text{April 1} & Assets A/c & 9,00,000 &
& Liabilities A/c & 3,00,000 &
& To AK Ltd. A/c & & 14,00,000
& \textit{(Being purchase of assets and assumption of liabilities from AK Ltd.)} & &
\hline \text{April 1} & AK Ltd. A/c & 14,00,000 &
& To Bank A/c & & 5,00,000
& To 8\% Debentures A/c & & 8,40,000
& To Discount on Issue of Debentures A/c & & 60,000
& \textit{(Being payment made partly in cash and balance through issuance of 8\% Debentures at a 10\% discount)} & &
\hline \end{array} \] \normalsize
Was this answer helpful?
0
0
Top Questions on Miscellaneous
- Abhay, Bikram, and Chris were partners in a firm sharing profits and losses equally. They decided to dissolve their partnership firm on 31st March, 2023. The firm’s Balance Sheet on the date of dissolution was as follows: \[ \begin{array}{|c|c|c|c|} \hline \textbf{Liabilities} & \textbf{Amount (₹)} & \textbf{Assets} & \textbf{Amount (₹)} \\ \hline \text{Capital:} & & \text{Plant and Machinery} & 80,000 \\ \text{Abhay} & 68,000 & \text{Furniture} & 45,000 \\ \text{Bikram} & 1,00,000 & \text{Motor Car} & 1,25,000 \\ \text{Chris} & 77,000 & \text{Stock} & 30,000 \\ \text{Creditors} & 1,20,000 & \text{Debtors} & 70,000 \\ & & \text{Cash at Bank} & 15,000 \\ \hline \textbf{Total} & 3,65,000 & \textbf{Total} & 3,65,000 \\ \hline \end{array} \] Adjustments:
- Plant and Machinery was taken over by Abhay at an agreed valuation of ₹ 75,000.
- Furniture realised ₹ 40,000.
- Motor Car was taken over by Bikram for ₹ 1,30,000.
- Debtors realised 10% less than their book value.
- 10% of the stock was taken over by Chris for ₹ 4,500. The remaining stock was sold for ₹ 30,000.
- Realisation expenses amounted to ₹ 5,000.
- CBSE CLASS XII - 2024
- Accountancy
- Miscellaneous
- ............. indicate the speed at which activities of the business are being performed.
- CBSE CLASS XII - 2024
- Accountancy
- Miscellaneous
- From the following information, calculate ‘Return on Investment (ROI)’: \[ \begin{array}{|l|l|} \hline \textbf{Particulars} & \textbf{₹} \\ \hline \text{Total Assets} & 22,00,000 \\ \text{10\% Debentures} & 5,00,000 \\ \text{Current Liabilities} & 2,00,000 \\ \text{Net Profit After Tax} & 7,20,000 \\ \text{Tax} & 1,80,000 \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Accountancy
- Miscellaneous
- From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet: \[ \begin{array}{|c|l|r|r|} \hline \textbf{Particulars} & \textbf{Note No.} & \textbf{31.3.2023 (₹)} & \textbf{31.3.2022 (₹)} \\ \hline \textbf{I – Equity and Liabilities:} & & & \\ 1. \text{Shareholders' Funds:} & & & \\ \hspace{0.5cm} (a) \text{Share Capital} & 1 & 15,00,000 & 12,00,000 \\ \hline 2. \text{Non-Current Liabilities:} & & & \\ \hspace{0.5cm} (a) \text{Long-term Borrowings} & 2 & 10,00,000 & 5,00,000 \\ \hline 3. \text{Current Liabilities:} & & & \\ \hspace{0.5cm} (a) \text{Trade Payables} & 3 & 1,00,000 & 3,00,000 \\ \hline \textbf{Total} & & 26,00,000 & 20,00,000 \\ \hline \textbf{II – Assets:} & & & \\ 1. \text{Non-Current Assets:} & & & \\ \hspace{0.5cm} (a) \text{Fixed Assets/Property, Plant, and Equipment} & 4 & 20,00,000 & 15,00,000 \\ \hline 2. \text{Current Assets:} & & & \\ \hspace{0.5cm} (a) \text{Inventories} & 5 & 1,50,000 & 1,00,000 \\ \hspace{0.5cm} (b) \text{Trade Receivables} & 6 & 4,50,000 & 4,00,000 \\ \hline \textbf{Total} & & 26,00,000 & 20,00,000 \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Accountancy
- Miscellaneous
- From the following information of NK Ltd., prepare a Common Size Statement of Profit and Loss for the years ended 31st March, 2022 and 31st March, 2023: \[ \begin{array}{|l|r|r|} \hline \text{Particulars} & \text{31.3.2023 (₹)} & \text{31.3.2022 (₹)} \\ \hline \text{Revenue from Operations} & 25,00,000 & 20,00,000 \\ \text{Cost of Materials Consumed} & 8,00,000 & 6,00,000 \\ \text{Employee Benefit Expenses} & 4,00,000 & 4,00,000 \\ \text{Income Tax Rate (\%)} & 20 & 30 \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Accountancy
- Miscellaneous
View More Questions
Questions Asked in CBSE CLASS XII exam
- A person with trisomy of 21st chromosome shows:
(i) Furrowed tongue
(ii) Characteristic palm crease
(iii) Rudimentary ovaries
(iv) Gynaecomastia
Select the correct option from the choices given below:- CBSE CLASS XII - 2024
- Assisted Reproductive Technology
Observe the population growth curve and answer the questions given below:
State the conditions under which growth curve ‘A’ and growth curve ‘B’ plotted in the graph are possible.
- CBSE CLASS XII - 2024
- population ecology
Observe the population growth curve and answer the questions given below:
Population growth curves showing exponential growth (A) and logistic growth (B).
Mention what does ‘K’ in the graph represent.
- CBSE CLASS XII - 2024
- Reproduction in Plants
- If the base adenine constitutes 31% of an isolated DNA fragment, then write what will be the expected percentage of the base cytosine in it. Explain how did you arrive at the answer given.
- CBSE CLASS XII - 2024
- Diversity In The Living World
- Identify a, b, c, d, e, and f in the table given below: \[ \begin{array}{|c|c|c|c|} \hline \textbf{Sl. No.} & \textbf{Organism} & \textbf{Bioactive Molecule} & \textbf{Use} \\ \hline 1 & \textit{Monascus purpureus} & a & b \\ \hline 2 & c & d & \text{Antibiotic} \\ \hline 3 & e & \text{Cyclosporin A} & f \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Diversity In The Living World
View More Questions