Question :
Y Ltd., purchased plant and machinery for Rs.2,00,000 from Z Ltd. 20% of the amount was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issuing 6% debentures of Rs. 1,000 each at a premium of 25%.
Number of debentures issued is -------
Option 1: 1,280 debentures
Option 2: 128 debentures
Option 3: 160 debentures
Option 4: 1,600 debentures
Correct Answer: 1,280 debentures
Solution : Answer = 1280 debentures
Plant and Machinery A/C Dr 20,00,000
To B/P - 40,000
To Vendor Co- 1,60,000
Vendor Co - Dr 1,60,000
(1280 x 100) To Debentures 1,28,000
To Securities Premium 32,000
($\frac{1,60,000}{125}$ = 1280 Debentures. Hence, the correct option is 1.
Securities premium reserve credited with --------
Option 1: Rs 3,20,000
Option 2: Rs 28,000
Option 3: Rs 25,000
Option 4: None of the above
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 : 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 : Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd. as follows :
(i) By issuing 5,000 equity shares of Rs.10 each at a premium of 30%.
00 By issuing 1000, 8% Debentures of Rs. 100 each at a discount of 10%.
(iii) Balance by giving a promissory note of Rs.48,000 payable after two months.
Calculate the amount due to vendor co is or cost of machinery brought is -----
Option 1: Rs 90,000
Option 2: Rs 48,000
Option 3: Rs 2,03,000
Option 4: Rs 2,30,000
Bose Ltd. purchased assets of Rs. 9,90,000 from Bhagat & Co. Payment was made by issuing 11% Debentures of Rs. 100 each. Calculate the number of debentures, if debentures were issued at 10% premium
Option 1: 9,900 debentures
Option 2: 9,000 debentures
Option 3: 11,000 debentures
Option 4: 10,000 debentures
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