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CUET Accountancy 2025 PYQs14 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 14 May Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2025 14 May Shift 2

Medium

Comprehension:

Answer the next 5 questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. XYZ Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each at a premium of 5%

Blue Prints Ltd., account will be :

Solution

✅ Correct Option: 2,4

When XYZ Ltd. purchases assets and takes over liabilities from Blue Prints Ltd., two entries are passed:

Entry 1: Recording the Purchase

When assets and liabilities are taken over, Blue Prints Ltd. represents the amount payable (a liability for XYZ Ltd.). Since the purchase consideration is Rs 3,15,000, this amount is owed to Blue Prints Ltd.

Assets A/c Dr. 3,00,000

Goodwill A/c Dr. 35,000

To Liabilities A/c 20,000

To Blue Prints Ltd. 3,15,000

Here, Blue Prints Ltd. is Credited by Rs 3,15,000 (Option 4)

Note: Goodwill = Purchase Consideration - Net Assets = 3,15,000 - (3,00,000 - 20,000) = Rs 35,000

Entry 2: Settlement of Payment

When XYZ Ltd. pays Blue Prints Ltd. by issuing debentures:

Blue Prints Ltd. Dr. 3,15,000

To 12% Debentures A/c 3,00,000

To Securities Premium Reserve 15,000

Here, Blue Prints Ltd. is Debited by Rs 3,15,000 (Option 2)

Number of debentures issued = 3,15,000105\frac{3,15,000}{105} = 3,000 debentures

(Since debentures are issued at 105, i.e., Rs 100 + 5% premium)

Both options are correct as Blue Prints Ltd. account is credited when liability is created and debited when payment is made, both for Rs 3,15,000.

Related questions:

2026: 6 June Shift 1

Varun Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from Anuj Ltd., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Varun Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. What will be the amount of goodwill in this case?

2026: 29 May Shift 2

__________ debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.

2025: 13 May Shift 1

Which statements are wrong about debentures?

(A) Debenture is a part of owned capital.

(B) The debentures cannot be issued at a discount of more than 10% of the face value.

(C) Debentures cannot be converted into shares.

(D) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

2026: 29 May Shift 2

A company took a loan of Rs. 10,00,000 from Punjab National Bank and issued 10% debentures of Rs. 12,00,000 of Rs. 100 each as a collateral security. What will be the journal entry to record this?

2025: 4 June Shift 2

Debentures which are transferable by mere delivery are:

2025: 3 June Shift 1

The following are the features of Debentures:

(A) The payment of interest is a charge on profits and is to be paid even if there is no profit.

(B) The debentures, which are issued for a specified period are repayable on the expiry of that period.

(C) If the debentures are generally secured, they carry a fixed or floating charge over the assets of the company.

(D) Debentures can not be converted into shares in any case.

Choose the correct answer from the options given below:

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