Solution for Q 21 to 30 of Chapter 2 of Book 2 - Accounting for Companies of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Issue of Debentures class 12. These Solutions are based on topics issue of debentures for consideration other than cash
Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.
These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.
Question 21
| Journal of Ananya Ltd |
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Business A/c Dr.. | 200000 | ||||||||
| To Vendor A/c | 200000 | ||||||||
| (Being Businness purchased from vendor) | |||||||||
| Vendor A/c Dr.. | 200000 | ||||||||
| Discount on issue of Debentures A/c | 15000 | 10 | |||||||
| To 9% Debentures A/c | 150000 | 1500 | 100 | ||||||
| To Bank A/c | 65000 | ||||||||
| (Being 9% Debentures issued to Vendor for consideration | |||||||||
| other than cash) | |||||||||
| Working Note : | ||
| Calculation of No of Debentures Issued | ||
| Total consideration to be paid | 200000 | |
| Less - Paid by check | 65000 | |
| Balance Payable through Debentures | 135000 | |
| Nominal Value of Debenture | 100 | |
| Debenture per Debenture | 10 | |
| Issue Price per Debenture | 90 | |
| No of Debentures Issued | 1500 | (135000/90) |
▶ Video Solution: Coming Soon
Question 22
| Assets | 2000000 | |
| Less - Creditors | 200000 | |
| Net Assets (Purchase Consideration) | 1800000 | |
| Working Note : | ||
| Calculation of No of Debentures Issued | ||
| Total consideration to be paid | 1800000 | |
| Nominal Value of Debenture | 100 | |
| Debenture per Debenture | 10 | |
| Issue Price per Debenture | 90 | |
| No of Debentures Issued | 20000 | (1800000/90) |
| Journal of Paragon Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Sundry Assets A/c Dr.. | 2000000 | ||||||||
| To Creditors A/c | 200000 | ||||||||
| To Kapil Enterprises A/c | 1800000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Kapil Enterprises) | |||||||||
| Kapil Enterprises A/c Dr.. | 1800000 | ||||||||
| Discount on issue of Debentures A/c Dr.. | 200000 | 20000 | 10 | ||||||
| To 8% Debentures A/c | 2000000 | 20000 | 100 | ||||||
| (Being 8% Debentures issued to Kapil Enterprises for | |||||||||
| consideration other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 23
| Working Note : | ||
| Assets | 900000 | |
| Less - Liabilities | 300000 | |
| Net Assets | 600000 | |
| Purchase Consideration | 1400000 | |
| Goodwill (Purchase Consideration - Net Assets) | 800000 | |
| Calculation of No of Debentures Issued | ||
| Total consideration to be paid | 1400000 | |
| Less - Bank Draft | 500000 | |
| Balance paid by issue of Debentures | 900000 | |
| Nominal Value of Debenture | 100 | |
| Discount per Debenture | 10 | |
| Issue Price per Debenture | 90 | |
| No of Debentures Issued | 10000 | (900000/90) |
| Journal of Gundola Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Sundry Assets A/c Dr.. | 900000 | ||||||||
| Goodwill A/c Dr.. | 800000 | ||||||||
| To Creditors A/c | 300000 | ||||||||
| To AK Ltd A/c | 1400000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Ak Ltd) | |||||||||
| AK Ltd A/c Dr.. | 1400000 | ||||||||
| Discount on issue of Debentures A/c Dr.. | 100000 | 10 | |||||||
| To 8% Debentures A/c | 1000000 | 10000 | 100 | ||||||
| (Being 8% Debentures issued to Ak Ltd for consideration | |||||||||
| other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 24
| Assets | 400000 | |
| Less - Liabilities | 50000 | |
| Net Assets (A) | 350000 | |
| Purchase Consideration (B) | 380000 | |
| Goodwill (B - A) | 30000 | |
| Working Note : | ||
| Calculation of No of Debentures Issued (At Par) | ||
| Total consideration to be paid | 380000 | |
| Nominal Value of Debenture | 100 | |
| Issue Price per Debenture | 100 | |
| No of Debentures Issued | 3800 | (PC/IP) |
| (380000/100) | ||
| Calculation of No of Debentures Issued (At Discount) | ||
| Total consideration to be paid | 380000 | |
| Nominal Value of Debenture | 100 | |
| Discount Per Debenture | 10 | |
| Issue Price per Debenture | 90 | (100-10) |
| No of Debentures to be Issued | 4222.22 | (380000/90) |
| No of Full Debenture | 4222 | |
| Face Value of Debentures issued | 422200 | |
| Issue Price of Debentures after Discount | 379980 | |
| Amount paid in Cash | 20 | |
| Calculation of No of Debentures Issued (At Premium) | ||
| Total consideration to be paid | 380000 | |
| Nominal Value of Debenture | 100 | |
| Premium Per Debenture | 10 | |
| Issue Price per Debenture | 110 | (100+10) |
| No of Debentures to be Issued | 3454.55 | (380000/110) |
| No of Full Debenture | 3454 | |
| Face Value of Debentures issued | 345400 | |
| Issue Price of Debentures including premium | 379940 | |
| Amount paid in Cash | 60 | |
| Journal of Exi Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Sundry Assets A/c Dr.. | 400000 | ||||||||
| Goodwill A/c Dr.. | 30000 | ||||||||
| To Sundry Liabilities A/c | 50000 | ||||||||
| To Mohan Bros A/c | 380000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Mohan Bros) | |||||||||
| At Par | |||||||||
| Mohan Bros A/c Dr.. | 380000 | ||||||||
| To Debentures A/c | 380000 | 3800 | 100 | ||||||
| (Being Debentures issued to Mohan Bros for consideration | |||||||||
| other than cash) | |||||||||
| 4222 | |||||||||
| At Discount | |||||||||
| Mohan Bros A/c Dr.. | 380000 | this is normal entry | |||||||
| Discount on issue of Debentures A/c Dr.. | 42220 | 4222 | 10 | ||||||
| To Debentures A/c | 422200 | 4222 | 100 | ||||||
| To Cash A/c | 20 | ||||||||
| (Being Debentures issued to Mohan Bros for consideration | |||||||||
| other than cash) | |||||||||
| At Premium | |||||||||
| Mohan Bros A/c Dr.. | 380000 | ||||||||
| To Debentures A/c | 345400 | 3454 | 100 | ||||||
| To Securities Premium Reserve A/c | 34540 | 3454 | 10 | ||||||
| To Cash | 60 | ||||||||
| (Being Debentures issued to Mohan Bros for consideration | |||||||||
| other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 25
| Land and Building | 5000000 | |
| Furniture | 1000000 | |
| Stock | 500000 | |
| Total Assets | 6500000 | |
| Less - Creditors | 700000 | |
| Net Assets (A) | 5800000 | |
| Purchase Consideration (B) | 6000000 | |
| Goodwill (B - A) | 200000 | |
| Calculation of No of Debentures Issued (At Premium) | ||
| Total consideration to be paid | 6000000 | |
| Nominal Value of Debenture | 100 | |
| Premium Per Debenture | 20 | |
| Issue Price per Debenture | 120 | |
| No of Debentures to be Issued | 50000 | (6000000/120) |
| Journal of Raja Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Land and Building A/c Dr.. | 5000000 | ||||||||
| Furniture A/c Dr.. | 1000000 | ||||||||
| Stock A/c Dr.. | 500000 | ||||||||
| Goodwill A/c Dr.. | 200000 | ||||||||
| To Creditors A/c | 700000 | ||||||||
| To Krishna Ltd A/c | 6000000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Krishna Ltd) | |||||||||
| At Premium | |||||||||
| Krishna Ltd A/c Dr.. | 6000000 | ||||||||
| To 12% Debentures A/c | 5000000 | 50000 | 100 | ||||||
| To Securities Premium Reserve A/c | 1000000 | 50000 | 20 | ||||||
| (Being Debentures issued to Mohan Bros for consideration | |||||||||
| other than cash) | |||||||||
| Note : For calculating Goodwill or capital reserve the Net Assets and Purchase |
| Consideration should be given separately in the question |
| Note : If not given separately then Net Assets will be assumed to be the purchase |
| consideration and so no goodwill/capital reserve will arise |
▶ Video Solution: Coming Soon
Question 26
| Assets | 2000000 | |||
| Total Assets | 2000000 | |||
| Less - Liabilities | 100000 | |||
| Net Assets (A) | 1900000 | (kitne ki cheej aayi) | ||
| Purchase Consideration (B) | 1800000 | (kitne ki payment, shares, debentures dene hain) | ||
| Capital Reserve (A - B) | 100000 | (If Net Assets > Purchase consideration) | ||
| Calculation of No of Debentures Issued (At Discount) | ||||
| Total consideration to be paid | 1800000 | FV | 100 | |
| Less - Bank Draft | 900000 | Discount | 10 | |
| Balance payable by debentures issue | 900000 | Issue Price | 90 | |
| Nominal Value/Face Value of Debenture | 100 | |||
| Less - Discount | 10 | |||
| Issue Price per Debenture | 90 | |||
| No of Debentures to be Issued | 10000 | (900000/90) | ||
| Journal of Astha Ltd | ||||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Assets | 2000000 | ||||||||
| To Liabilities A/c | 100000 | ||||||||
| To Capital Reserve A/c | 100000 | ||||||||
| To Krishna Ltd A/c (Vendor) | 1800000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Krishna Ltd) | |||||||||
| At Discount | |||||||||
| Krishna Ltd A/c Dr.. | 1800000 | ||||||||
| Discount on Issue of Debentires A/c Dr.. | 100000 | 10000 | 10 | ||||||
| To 12% Debentures A/c | 1000000 | 10000 | 100 | ||||||
| To Bank A/c | 900000 | ||||||||
| (Being Debentures issued to Nabha Ltd for consideration | |||||||||
| other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 27
| Assets | 4000000 | |
| Less - Liabilities | 700000 | |
| Net Assets (A) | 3300000 | (kitne ki cheej aayi hai) |
| Purchase Consideration (B) | 3240000 | (kitne paise dene hain) |
| Capital Reserve (A - B) | 60000 | ((Assets - Liabilities ) > PC) |
| (Net Assets > PC) | ||
| Working Note : | ||
| Calculation of No of Debentures Issued (At Discount) | ||
| Total consideration to be paid | 3240000 | |
| Nominal Value of Debenture | 100 | |
| Discount Per Debenture | 10 | |
| Issue Price per Debenture | 90 | 36000 |
| No of Debentures to be Issued | 36000 | (PC / Issue price) |
| Journal of Green Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Sundry Assets A/c Dr.. | 4000000 | ||||||||
| To Sundry Liabilities A/c | 700000 | ||||||||
| To Capital Reserve A/c | 60000 | ||||||||
| To Strong Ltd A/c | 3240000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Strong Ltd) | |||||||||
| At Discount | |||||||||
| Strong Ltd A/c Dr.. | 3240000 | ||||||||
| Discount on issue of Debentures A/c Dr.. | 360000 | 36000 | 10 | ||||||
| To 10% Debentures A/c | 3600000 | 36000 | 100 | ||||||
| (Being Debentures issued to Strong Ltd for consideration | |||||||||
| other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 28
| Building | 1550000 |
| Machinery | 1140000 |
| Furniture | 110000 |
| Total Assets | 2800000 |
| Less - Liabilities | 200000 |
| Net Assets (A) | 2600000 |
| Purchase Consideration (B) | 2500000 |
| Capital Reserve (A - B) | 100000 |
| Working Note : | |
| Calculation of No of Debentures Issued (At Discount) | |
| Total consideration to be paid | 2500000 |
| Nominal Value of Debenture | 100 |
| Add - Premium on issue | 25 |
| Issue Price per Debenture | 125 |
| No of Debentures to be Issued | 20000 |
| Journal of Apoorv Ltd | |
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Building A/c Dr.. | 1550000 | ||||||||
| Machinery A/c Dr.. | 1140000 | ||||||||
| Furniture A/c Dr.. | 110000 | ||||||||
| To Liabilities A/c | 200000 | ||||||||
| To Capital Reserve A/c | 100000 | ||||||||
| To Dhruv Ltd A/c | 2500000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Strong Ltd) | |||||||||
| At Premium | |||||||||
| Dhruv Ltd A/c Dr.. | 2500000 | ||||||||
| To 10% Debentures A/c | 2000000 | 20000 | 100 | ||||||
| To SPR A/c | 500000 | 20000 | 25 | ||||||
| (Being Debentures issued to Dhruv Ltd for consideration | |||||||||
| other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 29
| In this question Book Value and Agreed Values are given. | ||
| Here we will consider only the agreed values as this is price which has been agreed for purchase | ||
| Building | 3500000 | |
| Plant and Machinery | 800000 | |
| Stock | 400000 | |
| Trade Receivables | 400000 | |
| Total Assets | 5100000 | |
| Less - | ||
| Creditors | 300000 | |
| Outstanding Expenses | 100000 | |
| Total Liabilities | 400000 | |
| Net Assets (A) | 4700000 | (kitne ki cheej aayi hai) |
| Purchase Consideration (B) | ||
| Bank | 700000 | |
| Debentures (200000 Debentures X (20*1.25) per Debenture | 5000000 | |
| Total Purchase Consideration (B) | 5700000 | |
| (kitne paise dene hain) | ||
| Goodwill (B - A) | 1000000 | |
| Working Note : | ||
| Calculation of No of Debentures Issued (At Premium) | ||
| Total consideration to be paid | 5000000 | |
| Nominal Value of Debenture | 20 | |
| Premium Per Debenture | 5 | |
| Issue Price per Debenture | 25 | |
| No of Debentures to be Issued | 200000 | |
| Journal of Neeraj Ltd | ||
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Building A/c Dr.. | 3500000 | ||||||||
| Plant and Machinery A/c Dr.. | 800000 | ||||||||
| Stock A/c Dr.. | 400000 | ||||||||
| Trade Receivables A/c Dr.. | 400000 | ||||||||
| Goodwill A/c Dr.. | 1000000 | ||||||||
| To Creditors A/c | 300000 | ||||||||
| To Outstanding Expenses A/c | 100000 | ||||||||
| To Ajay Enterprises A/c | 5700000 | ||||||||
| (Being Assets purchased and liabilities taken over purchased | |||||||||
| from Ajay Enterprises) | |||||||||
| At Premium | |||||||||
| Ajay Enterprises A/c Dr.. | 5700000 | ||||||||
| To 9% Debentures A/c | 4000000 | 200000 | 20 | ||||||
| To Securities Premium Reserve A/c | 1000000 | 5 | |||||||
| To Bank A/c | 700000 | ||||||||
| (Being Debentures issued to Ajay Enterprises for | |||||||||
| consideration other than cash) | |||||||||
▶ Video Solution: Coming Soon
Question 30
| Journal of Grown Ltd |
| Date | Particulars | Dr Amt | Cr Amt | Deb.(Nos) | Per Deb | ||||
| Incorporation Expenses/Preliminary Exp A/c Dr.. | 500000 | ||||||||
| To Promoters A/c | 500000 | 500 | 1000 | ||||||
| (Incorporation Expenses Payable) | |||||||||
| Promoters A/c Dr.. | 500000 | ||||||||
| To 10% Debentures A/c | 500000 | ||||||||
| (Being 10% Debentures issued to promoters) | |||||||||
| Underwriting Commission A/c Dr.. | 100000 | ||||||||
| To Underwriters' A/c | 100000 | 100 | 1000 | ||||||
| (Being Underwriting commission payable) | |||||||||
| Underwriters' A/c Dr.. | 100000 | ||||||||
| To 10% Debentures A/c | 100000 | ||||||||
| (Being 10% Debentures issued to underwriters) | |||||||||
▶ Video Solution: Coming Soon
Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-62