i) Neeraj Ltd. took over business of Ajay enterprises on 01-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are: 

Particulars Book Value (₹) Agreed Value (₹)
Building 20,00,000 35,00,000
Plant and machinery 12,00,000 8,00,000
Stock 4,00,000 4,00,000
Trade Receivables 5,00,000 4,00,000
Creditors 2,00,000 3,00,000
Outstanding Expenses 50,000 1,00,000

It was decided to pay for purchase consideration as 7,00,000 through Cheque and balance by issue of 2,00,000, 9% Debentures of 20 each at a premium of 25%. Journalize. 

 ii) On April 1, 2019 Z Ltd. issued, 10,000, 8% Debentures of 100 each at premium of 5%, to be redeemable at a premium of 10%, after 5 years. The entire amount was payable on application. The issue was oversubscribed to the extent of 10,000 debentures and the allotment was made proportionately to all the applicants. The securities premium amount has not been utilized for any other purpose during the year. Give journal entries for the issue of debentures and writing off loss on issue of debentures. 

Marks-6, CBSE:2020-21/Sample/Q-20

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