Question : Guun Limited purchased a running business from Vani Limited for a sum of Rs.25,00,000, payable Rs.4,00,000 by cheque and for the balance issued 8% Debentures of Rs.100 each at 5% premium.
The assets and liabilities consisted of the following :
Land and Buildings 9,00,000 Plant and Machinery 8,00,000
Patents 40,000 Sundry Debtors 7,00,000
Stock 5,00,000 Sundry Creditors 1,20,000
Question:- Number Of debenture issued is
Option 1: 20,000
Option 2: 32,000
Option 3: 40,000
Option 4: 21,000
Correct Answer: 20,000
Solution : Answer = 20,000
Land and building A/c Dr 9,00,000
Plant and Machinery A/c Dr. 8,00,000
Patent A/c Dr 40000
S. Debtors Dr 7,00,000
Stock A/c Dr 5,00,000
To Creditor - 1,20,000
To Vendor Co - 25,00,000
To Capital Reserve (B/f) 3,20,000
Vendor Co - Dr 25,00,000
To Bank A/c 4,00,000
(20,000x 100) To % Debentures A/c 20,00,000
(20,000x 5) To Securities Premium A/c 1,00,000
$\frac{21,00,000}{105}$= 20,000 Debentures
Hence, the correct option is 1.
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