[DK Goel] Q. 13, 14 Issue of Debentures Solutions Class 12 CBSE (2026-27)

Here are the solution of question number 13 and 14 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).

Q. 13. J Ltd. purchased machinery for ₹ 3,50,000 from K Ltd. on 28.2.2023. ₹ 50,000 were paid to K Ltd. immediately and the balance was paid by issue of 10% debentures of ₹ 3,10,000 in J Ltd. Pass the necessary journal entries including writing off discount on issue of debentures.

[Ans. Discount on issue of debentures will be debited by ₹ 10,000.]

Solution:-

Q. 14. Star Textiles Ltd. purchased assets of Modern Textiles Ltd. as under:

Land and Buildings of ₹ 25,00,000 at ₹ 40,00,000; Plant and Machinery of ₹ 10,00,000 for ₹ 7,50,000 and Furniture of ₹ 3,00,000 for ₹ 1,00,000 for purchase consideration of ₹ 45,00,000. Star Textiles Ltd. paid ₹ 3,00,000 in cash and remaining by issue of 9% Debentures of ₹ 500 each at a premium of 5%. Record necessary entries in the books of Star Textiles Ltd.

[Ans. Capital Reserve ₹ 3,50,000; Debentures issued: 8,000 Debentures of ₹ 500 each.]

Solution:-