Question 14 Marks
Answer the following questions after reading this case on $1^{st} $ April $2022.$
$X$ ltd. purchased assets worth $₹30,00,000$ and also took over liabilities of $2,50,000$ from $Y$ ltd for a purchase consideration of $₹26,00,000.$
$X$ ltd. paid the purchase consideration by$-$
$(i)$ Issuing $10,000, 9\%$ debentures of $₹100$ each at a premium of $20\%.$
$(ii)$ Issuing $14,000, 12\%$ debentures of $₹100$ each at par.
On the same date, it took a loan of $₹6,00,000$ from State Bank of India for which the company placed $10\%$ debentures for ₹8,00,000 as collateral security with the bank.
Following is the extract of Balance sheet as at $31^{st} $ Mar $2023.$
$1.$ The amount to be reflected in blank $(1)$ will be-
$A)\ ₹10,00,000$
$B)\ ₹10,90,000$
$C)\ ₹12,90,000$
$D) \ 12,00,000$
$2.$ The amount to be reflected in blank $(2)$ will be-
$A)\ ₹6,80,000$
$B)\ ₹8,00,000$
$C)\ ₹6,00,000$
$D)\ ₹8,60,000$
$3.$ The amount to be reflected in blank $(3)$ will be-
$A)\ ₹22,00,000$
$B)\ ₹28,00,000$
$C)\ ₹26,00,000$
$D)\ ₹24,00,000$
$4.$ The amount to be reflected in blank $(4)$ will be-
$A)\ ₹32,00,000$
$B)\ ₹30,00,000$
$C)\ ₹34,00,000$
$D)\ ₹36,00,000$
$X$ ltd. purchased assets worth $₹30,00,000$ and also took over liabilities of $2,50,000$ from $Y$ ltd for a purchase consideration of $₹26,00,000.$
$X$ ltd. paid the purchase consideration by$-$
$(i)$ Issuing $10,000, 9\%$ debentures of $₹100$ each at a premium of $20\%.$
$(ii)$ Issuing $14,000, 12\%$ debentures of $₹100$ each at par.
On the same date, it took a loan of $₹6,00,000$ from State Bank of India for which the company placed $10\%$ debentures for ₹8,00,000 as collateral security with the bank.
Following is the extract of Balance sheet as at $31^{st} $ Mar $2023.$
| I. Equity and Liabilities: | Note No. | $(₹)$ |
| Non-current liabilities | ||
| Long-term Borrowing | $1$ | $4$ |
| Notes to Accounts: |
| Particulars | $(₹)$ | $(₹)$ |
| $1.$ Long-term Borrowing: | ||
| $10,000, 9\%$ Debentures | $1$ | |
| $14,000, 27\%$ Debentures | $14,00,000$ | |
| $10\%$ Debentures | $-$ | |
| Less Debentures suspense A/c | $2$ | $3$ |
| Bank loan $($on collateral security$)$ | $-$ | |
| $-$ |
$A)\ ₹10,00,000$
$B)\ ₹10,90,000$
$C)\ ₹12,90,000$
$D) \ 12,00,000$
$2.$ The amount to be reflected in blank $(2)$ will be-
$A)\ ₹6,80,000$
$B)\ ₹8,00,000$
$C)\ ₹6,00,000$
$D)\ ₹8,60,000$
$3.$ The amount to be reflected in blank $(3)$ will be-
$A)\ ₹22,00,000$
$B)\ ₹28,00,000$
$C)\ ₹26,00,000$
$D)\ ₹24,00,000$
$4.$ The amount to be reflected in blank $(4)$ will be-
$A)\ ₹32,00,000$
$B)\ ₹30,00,000$
$C)\ ₹34,00,000$
$D)\ ₹36,00,000$
Answer
View full question & answer→1. (D) 2. (B) 3. (C) 4. (A)