Question : Rohit Ltd. purchased assets for Rs.1,20,000 and also took over the outside liabilities Rs.20,000 of Amir Ltd. for a purchase consideration of Rs. 1,92,000. Rohit Ltd. paid the purchase consideration by issuing 10% debentures of Rs.100 each at a discount of 20%.
Calculate the number of debentures.
Option 1: 2,133
Option 2: 2,135
Option 3: 2,100
Option 4: 2,111
Correct Answer: 2,133
Solution : Assets A/c Dr. 1,20,000 Goodwill A/c Dr. 92,000 To Outside Liabilities A/c 20,000 To Amir Ltd. 1,92,000 (Being assets are purchased) Amir Ltd. Dr. 1,92,000 Discount on issue of deb. A/c Dr. 21,330 (2,133 X 10) To 10% Debentures A/c 2,13,300 (2,133 X 100) To Bank A/c 30 (10% debentures are issued) Working Notes: Number of debentures = Purchase Consideration/Issue Price = Rs.1,92,000/(100 - 10) = 2,133 (approx.). Hence, the correct option is 1.
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 a premium of 20%.
Number of debentures issued
Option 1: 1,200 debentures
Option 2: 1,600 debentures
Option 3: 1,500 debentures
Option 4: 1,000 debentures
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 a premium of 20%.
Amount of Net assets are ------
Option 1: Rs 2,20,000
Option 2: Rs 40,000
Option 3: Rs 1,80.000
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.
Numbers of debnetures issued will be
Option 1: 6,600 debenture
Option 2: 6,000 debentures
Option 3: 5,000 debentures
Option 4: 4,500 debentures
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
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
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