Question 3 of 16
Q.Light Ltd. purchased the following assets from Black Ltd.: Plant and Machinery ₹ 2,00,000, Land and Building ₹ 5,00,000. Black Ltd. was paid for such purchases as ₹ 1,00,000 by Bank draft and the balance by issue of 10% Debentures (Face value ₹ 100) at 20% premium. Pass necessary Journal entries in the books of Light Ltd.
West Bengal WbchseWBCHSE West Bengal HS (Class-12) Commerce Board 2016Subjective· 4mImportance★★★★★est
19% · 3/16 Questions
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Start your 14-day free trial to unlock the full solution →Record assets bought (Plant 2,00,000 + Land & Building 5,00,000 = 7,00,000) from Black Ltd.; pay 1,00,000 by bank draft; settle the 6,00,000 balance by issuing 5,000 of 10% Debentures (face 100) at 20% premium — Debentures 5,00,000 + Securities Premium 1,00,000.
This is a WBCHSE HS (West Bengal Class-12) Accountancy company-accounts problem on issue of debentures to a vendor.
Working note — Debentures issued = balance due / issue price = 6,00,000 / 120 = 5,000 debentures. Face value = 5,000 x 100 = 5,00,000; Securities Premium = 5,000 x 20 = 1,00,000.
Journal of Light Ltd.
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Plant and Machinery A/c ........ Dr. | 2,00,000 | |||
| Land and Building A/c ........ Dr. | 5,00,000 | |||
| To Black Ltd. | 7,00,000 | |||
| (assets purchased from Black Ltd.) | ||||
| Black Ltd. ........ Dr. | 1,00,000 | |||
| To Bank A/c | 1,00,000 |
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