Page 118 - AAAXII

Model Test Papers M.111

8. JOURNAL OF STAR LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Building A/c ...Dr. 30,00,000
Plant and Machinery A/c ...Dr. 10,00,000
Stock A/c ...Dr. 20,00,000
Sundry Debtors A/c ...Dr. 10,00,000
To Sundry Creditors A/c 8,00,000
To Moon Ltd. 60,00,000
To Capital Reserve A/c (Balancing Figure) 2,00,000
(Being the purchase of business of Moon Ltd.)
Moon Ltd. ...Dr. 6,00,000
To Bank A/c (` 60,00,000 × 10/100) 6,00,000
(Being the part payment made to Moon Ltd. by a cheque)
Moon Ltd. ...Dr. 54,00,000
To Equity Share Capital A/c 45,00,000
To Securities Premium Reserve A/c 9,00,000
(Being the issue of 45,000 equity shares of ` 100 each at 20% premium
to Moon Ltd.)
Note: No. of Equity Shares to be issued = ` 54,00,000/` 120 = 45,000 shares.

Or
Date Particulars L.F. Dr. (`) Cr. (`)
Machinery A/c ...Dr. 5,00,000
To Kiran Machines Ltd. 5,00,000
(Being the machinery purchased from Kiran Machines Ltd. for ` 5,00,000)
Kiran Machines Ltd. ...Dr. 5,00,000
To Bank A/c 60,000
To 10% Debentures A/c 4,00,000
To Securities Premium Reserve A/c 40,000
(Being a cheque issued for ` 60,000 and balance paid by issue of 4,000;
10% Debentures of ` 100 each at a premium of 10%)
Note: Calculation of Purchase Price: `
Issue Price of 10% Debentures (4,000 × ` 110) 4,40,000
Add: Part payment by Cheque 60,000
5,00,000

9. JOURNAL OF MAX LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2018
March 31 Bank A/c (Note 2) ...Dr. 2,41,200
TDS Collected (Receivable) A/c ...Dr. 1,800
To Debentures Redemption Investment A/c 2,25,000
To Interest Earned A/c 18,000
(Being the investment encashed with interest and the bank
deducted TDS @ 10%)
10% Debentures A/c ...Dr. 15,00,000
Premium on Redemption of Debentures A/c ...Dr. 2,25,000
To Debentureholders’ A/c 17,25,000
(Being the debentures due for redemption at 15% premium)