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Accountancy · 2024 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2024 · Region 4 · Set 3 · Q19
Mahesh Ltd. purchased Plant and Machinery from Ish Ltd. for ₹ 4,50,000. ₹ 50,000 was paid by cheque to Ish Ltd. and the balance by issuing 6%…
Mahesh Ltd. purchased Plant and Machinery from Ish Ltd. for ₹ $\displaystyle 4,50$,000. ₹ $\displaystyle 50,000$ was paid by cheque to Ish Ltd. and the balance by issuing $\displaystyle 6$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 20$% . Pass the necessary Journal Entries for the above transactions in the books of Mahesh Ltd.
OR
Manika Ltd. forfeited $\displaystyle 500$ shares of ₹ $\displaystyle 100$ each for non-payment of first call of ₹ $\displaystyle 20$ per share and second and final call of ₹ $\displaystyle 25$ per share. $\displaystyle 250$ of these shares were reissued at ₹ $\displaystyle 50$ per share fully paid up. Pass the Journal Entries for forfeiture and reissue of shares.
Marking-scheme solution
Books of Mahesh Ltd.
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
(i)
Plant and Machinery A/c Dr $\displaystyle 4,50,000$
To Ish Ltd. $\displaystyle 4,50,000$
(Plant& Machinery purchased )
(ii)
Ish Ltd. Dr $\displaystyle 4,50,000$
Discount on issue of Debentures A/c Dr $\displaystyle 1,00,000$
To Bank A/c $\displaystyle 50,000$
To $\displaystyle 6$% Debentures A/c $\displaystyle 5,00,000$
(Paid ₹$\displaystyle 50,000$ by cheque & $\displaystyle 5,000$ debentures
issued at discount for consideration other
than cash. )
Alternatively
(ii)(a)
Ish Ltd. Dr $\displaystyle 50,000$
To Bank A/c $\displaystyle 50,000$
(Partial amount paid by cheque to Ish Ltd.)
(ii)(b)
Ish Ltd. Dr $\displaystyle 4,00,000$
Discount on issue of Debentures A/c Dr $\displaystyle 1,00,000$
To $\displaystyle 6$% Debentures A/c $\displaystyle 5,00,000$
($\displaystyle 5,000$ debentures issued at discount for
consideration other than cash.)
or
Q. (b) Manika Ltd…………………………………..
Ans. Books of Manika Ltd.
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
Share Capital A/c Dr $\displaystyle 50,000$
To Forfeited Shares A/c $\displaystyle 27,500$
To Share first call A/c $\displaystyle 10,000$
To Share second& final call A/c $\displaystyle 12,500$
(Forfeiture of $\displaystyle 500$ shares for non payment of
first and second call)
Alternatively
Share Capital A/c Dr
$\displaystyle 50,000$
To Forfeited Shares A/c $\displaystyle 27,500$
To Calls in Arrears A/c
$\displaystyle 22,500$
(Forfeiture of $\displaystyle 500$ shares for non payment of
first and second call)
Bank A/c Dr $\displaystyle 12,500$
Forfeited Shares A/c Dr $\displaystyle 12,500$
To Share Capital A/c $\displaystyle 25,000$
(Reissue of $\displaystyle 250$ shares)
Forfeited Shares A/c Dr $\displaystyle 1,250$
To Capital Reserve A/c $\displaystyle 1,250$
(Balance in forfeited shares account
transferred to capital reserve account.)
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.