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Accountancy · 2026 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2026 · Region 2 · Set 2 · Q18
Miraya Ltd. took over assets of ₹ $\displaystyle 70,00,000$ and liabilities of ₹ $\displaystyle 12,00,000$ of Vishal Ltd. for a purchase consideration of ₹ $\displaystyle 64,00$,000. The payment of purchase consideration was made by issue of $\displaystyle 50,000$, $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 20$% to Vishal Ltd. and the balance through a cheque. Pass necessary journal entries for the above transactions in the books of Miraya Ltd.ORDelta Ltd. invited applications for issuing $\displaystyle 30,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a premium of ₹ $\displaystyle 30$ per debenture. The full amount was payable on application. Applications were received for $\displaystyle 40,000$ debentures. Applications for $\displaystyle 2,000$ debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on pro rata basis. Pass the necessary journal entries for the above transactions in the books of Delta Ltd.
OR
Delta Ltd. invited applications for issuing $\displaystyle 30,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a premium of ₹ $\displaystyle 30$ per debenture. The full amount was payable on application. Applications were received for $\displaystyle 40,000$ debentures. Applications for $\displaystyle 2,000$ debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on pro rata basis. Pass the necessary journal entries for the above transactions in the books of Delta Ltd.Marking-scheme solution
(a)
Books of Miraya Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Sundry Assets A/c Dr. $\displaystyle 70,00,000$
Goodwill A/c Dr. $\displaystyle 6,00,000$
To Sundry Liabilities A/c $\displaystyle 12,00,000$
To Vishal Ltd. $\displaystyle 64,00,000$
(Assets and liabilities of Vishal Ltd. taken over)
Vishal Ltd. Dr. $\displaystyle 64,00,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 50,00,000$
To Securities Premium A/c $\displaystyle 10,00,000$
To Bank A/c $\displaystyle 4,00,000$
(Issue of $\displaystyle 50,000$ debentures of ₹ $\displaystyle 100$ each at a
premium of $\displaystyle 20$% and balance paid through cheque)
Alternatively, the following $\displaystyle 2$ entries may be passed
in place of the above entry-
Vishal Ltd. Dr. $\displaystyle 60,00,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 50,00,000$
To Securities Premium A/c $\displaystyle 10,00,000$
(Issue of $\displaystyle 50,000$ debentures ₹ $\displaystyle 100$ each at a premium
of $\displaystyle 20$%)
Vishal Ltd. Dr. $\displaystyle 4,00,000$
To Bank A/c $\displaystyle 4,00,000$
(Balance amount to Vishal Ltd. paid through cheque)
Q. (b) Delta Ltd. invited applications…
Ans. (b)
Books of Delta Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 52,00,000$
To Debenture Application & Allotment A/c $\displaystyle 52,00,000$
(Application money received on $\displaystyle 40,000$ debentures
of ₹$\displaystyle 100$ each at a premium of ₹$\displaystyle 30$ per debenture)
Debenture Application & Allotment A/c Dr. $\displaystyle 52,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 30,00,000$
To Securities Premium A/c $\displaystyle 9,00,000$
To Bank A/c $\displaystyle 13,00,000$
(Application money transferred to debentures A/c,
securities premium A/c and balance refunded)
Alternatively, the following $\displaystyle 2$ entries may be passed
in place of the above entry-
Debenture Application & Allotment A/c Dr. $\displaystyle 39,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 30,00,000$
To Securities Premium A/c $\displaystyle 9,00,000$
(Application money transferred to debentures A/c
and securities premium A/c)
Debenture Application & Allotment A/c Dr. $\displaystyle 13,00,000$
To Bank A/c $\displaystyle 13,00,000$
(Excess application money refunded)
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CBSE Class 12 Accountancy past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.