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Pista Ltd. took… (Class 12 Accountancy SQP 2025-26, Q4a)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 4(a)

From the official CBSE sample question paper for 2025-26, section A, question 4(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q4(a) · 1 mark · MCQIssue and Redemption of Debentures

Pista Ltd. took over running business of Vista Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 7,50,000 and in consideration issued them 30,000, 9% debentures of ₹ 100 each at 5% discount and a cheque of ₹ 10,00,000. Determine the amount of Goodwill or Capital Reserve.

  1. (A)Goodwill ₹ 9,00,000
  2. (B)Capital Reserve ₹ 9,00,000
  3. (C)Goodwill ₹ 1,00,000
  4. (D)Capital Reserve ₹ 1,00,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Debentures issued at 5% discount are worth ₹ 95 each to the vendor.

Hint 2

Compare total consideration with net assets (assets minus liabilities).

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Net assets taken over = ₹ 45,00,000 − ₹ 7,50,000 = ₹ 37,50,000.

  2. Purchase consideration = debentures 30,000 × ₹ 95 = ₹ 28,50,000 plus cheque ₹ 10,00,000 = ₹ 38,50,000. It exceeds net assets by ₹ 1,00,000, which is Goodwill. Option (C).

    1 mark

Answer: (C) Goodwill ₹ 1,00,000

Where the marks are

  • Consideration ₹ 38,50,000 vs net assets ₹ 37,50,000 gives goodwill ₹ 1,00,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Issue and Redemption of Debentures, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.