Match List I with List II

Choose the correct answer from the options given below:

A-II, B-IV, C-I, D-III

* Excess of purchase consideration over value of net assets- In case of the whole business being taken over if the amount of debentures issued is more than the amount of the net assets taken over, the difference (excess) will be treated as value of goodwill and the same shall also be debited while passing the journal entry for the purchase of vender’s business. But if it is the other way round, i.e., the value of debentures is less than the value of the net assets taken over the difference will be credited to capital Reserve account.

* Excess of net assets over purchase consideration- In case of the whole business being taken over if the amount of debentures issued is more than the amount of the net assets taken over, the difference (excess) will be treated as value of goodwill and the same shall also be debited while passing the journal entry for the purchase of vender’s business. But if it is the other way round, i.e., the value of debentures is less than the value of the net assets taken over the difference will be credited to capital Reserve account.

* Debenture suspense Account- The issue of debentures as a collateral security may be recorded by means of journal entry as follows:
  Debenture Suspense A/c Dr.
               To Debentures A/c 

* Assets received against debentures- Issue of Debentures for consideration other than Cash: Sometimes debentures can be issued to vendor or suppliers of patents, copyrights and for transfer of intellectual property rights on preferential basis without receiving money in cash.