Question 6 (Choice 1) - CBSE Class 12 Sample Paper for 2022 Boards [Term 2] - Accounts - Solutions to CBSE Sample Paper - Accounts Class 12

Transcript

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