Solutions to CBSE Sample Paper - Accounts Class 12
CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts
Question 6 (Choice 1) - CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts - Solutions to CBSE Sample Paper - Accounts Class 12
Last updated at March 16, 2023 by Teachoo
Vedesh Ltd. purchased a running business of Vibhu Enterprises for a sum of ₹ 12,00,000. Vedesh Ltd. paid ₹ 60,000 by drawing a promissory note in favour of Vibhu Enterprises., ₹1,90,000 through bank draft and balance by issue of 8% debentures of ₹ 100 each at a discount of 5%. The assets and liabilities of Vibhu Enterprises consisted of Fixed Assets valued at ₹ 17,30,000 and Trade Payables at ₹ 3,20,000. You are required to pass necessary journal entries in the books of Vedesh Ltd.
Answer
Date
Particulars
L.F
Dr (Amount)
Cr (Amount)
Sundry Assets A/c Dr
1730000
To Sundry Liabilities
320000
To Vibhu Enterprises
1200000
To Capital Reserve
210000
(Purchase of Business of Vibhu Enterprises)
NOTE :
When Net assets value exceeds purchase consideration, Capital Reserve appears
When Net assets value is less than purchase consideration, Good will appears.
Date
Particulars
L.F
Dr (Amount)
Cr (Amount)
Vedesh Ltd. Dr
1200000
Discount on Issue of Debentures A/c Dr
50000
To Promissory Note
60000
To Bank Draft
190000
To 8% Debentures A/c
1000000
(Being issue of bank draft, acceptance of bill and issue of 8% debentures in settlement of purchase consideration)
Particular
Amount
Amount to be paid to Vedesh
1200000
Less : Promissory Note given
60000
Less : Bank Draft Given
190000
Amount to be received from debentures after 5% Discount
Vedesh Ltd. purchased a running business of Vibhu Enterprises for a sum of ₹ 12,00,000. Vedesh Ltd. paid ₹ 60,000 by drawing a promissory note in favour of Vibhu Enterprises., ₹1,90,000 through bank draft and balance by issue of 8% debentures of ₹ 100 each at a discount of 5%. The assets and liabilities of Vibhu Enterprises consisted of Fixed Assets valued at ₹ 17,30,000 and Trade Payables at ₹ 3,20,000. You are required to pass necessary journal entries in the books of Vedesh Ltd.
Answer
Date Particulars L.F Dr (Amount) Cr (Amount)
Sundry Assets A/c Dr
1730000
To Sundry Liabilities
320000
To Vibhu Enterprises
1200000
To Capital Reserve
210000
(Purchase of Business of Vibhu Enterprises)
NOTE : When Net assets value exceeds purchase consideration, Capital Reserve appears
When Net assets value is less than purchase consideration, Good will appears.
Date Particulars L.F Dr (Amount) Cr (Amount)
Vedesh Ltd. Dr
1200000
Discount on Issue of Debentures A/c Dr
50000
To Promissory Note
60000
To Bank Draft
190000
To 8% Debentures A/c
1000000
(Being issue of bank draft, acceptance of bill and issue of 8% debentures in settlement of purchase consideration)
Particular Amount
Amount to be paid to Vedesh 1200000
Less : Promissory Note given 60000
Less : Bank Draft Given 190000
Amount to be received from debentures after 5% Discount 950000
CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo
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