Question :

Citizen Ltd. issued 10,000, 6% Debentures of  Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of  Rs. 1,75,000. Loss on Issue of Debentures  Rs. 2,00,000 will be written off by passing the following entry

Option 1: Debited securities premium with Rs 1,75,000 and credited loss on issue of debenture account Rs 1,75,000

Option 2: Debited securities premium reserve account with Rs 1,75,000 and debited surplus in profit and loss account Rs 25,000 and credited loss on issue of debenture account Rs 2,00,000

Option 3: Debited surplus in statement of profit and loss account Rs 2,00,000 and credited loss on issue of debentures account 

Option 4: None of these 

Question :

Exe Ltd. took over assets of  Rs. 7,00,000 and liabilities of  Rs. 60,000 of Wye Ltd. for the purchase consideration of Rs. 6,60,000. Exe Ltd. paid the purchase consideration by issuing 9% Debentures of  Rs. 100 each at 10% premium. 

Goodwill/capital reserve  will be debited/credited by _________.

Option 1: Debited goodwill account by Rs 20,000 

Option 2: Credited capital reserve by Rs 20,000

Option 3: Debited profit and loss account by Rs 20,000

Option 4: Debited goodwill account by Rs 40,000

Question : Y Ltd. purchased assets of Rs. 8,00,000 and liabilities of Rs. 1.00,000 from X Ltd. on 1.4.2018. Rs. 2,00,000 were paid immediately and the balance was paid by issue of Rs. 4,75,000, 10% debentures in Y Ltd __________ account will be _______ with __________.

Option 1: Capital reserve, credited, Rs. 25,000
 

Option 2: Goodwill, debited, Rs. 75,000
 

Option 3: Rs. 4,75,000 and Securities Premium, credited, Rs. 25,000

Option 4:  Rs. 5,00,000 debentures and Securities Premium credited Rs. 25,000
 

Question : If a company issues a fully paid share of Rs.1,25,000 in consideration of net assets of Rs.1,50,000 to a vendor. The Balance of Rs.25,000 will be credited to:

Option 1: Goodwill Account

Option 2: Security Premium Account

Option 3: Statement of Profit and Loss Account

Option 4: Capital Reserve Account

Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs. 1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at premium of 20%.

Difference between purchase consideration and Net Assets are debited/credited to

Option 1: Debited to goodwill account by Rs 12,000

Option 2: Credited to capital reserve account by Rs 12,000

Option 3: Debited to profit and loss account Rs 12,000

Option 4: Credited to General reserve Rs 12000