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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 1 · Set 2 · Q24
On 1st April, $\displaystyle 2022$, Ahilaan Ltd. issued $\displaystyle 10,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 7$%, redeemable at a premium of $\displaystyle 3$% after five years. The company had a balance of ₹ $\displaystyle 20,000$ in Securities Premium Account. (a) Pass necessary journal entries for issue of debentures and for writing off 'Loss on Issue of Debentures' utilising Securities Premium Account at the end of first year itself. (b) Prepare 'Loss on Issue of Debentures Account' for the year ended 31st March, 2023.
Marking-scheme solution
(a)
Books of Ahilaan Ltd.
JOURNAL
Amount
LF Amount
Date Particulars
₹ ₹
$\displaystyle 2022$ (i)
Apr $\displaystyle 1$ Bank A/c Dr. $\displaystyle 10,70,000$
To Debenture Application & $\displaystyle 10,70,000$
Allotment A/c
(Application money received on $\displaystyle 10,000$
$\displaystyle 7$% Debentures)
_________________________________
(ii)
Apr $\displaystyle 1$
Debenture Application &
$\displaystyle 10,70,000$
Allotment A/c Dr.
Loss on issue of Issue of
$\displaystyle 30,000$
Debentures A/c Dr.
$\displaystyle 10,00,000$
To $\displaystyle 7$% Debentures A/c
$\displaystyle 70,000$
To Securities premium A/c
$\displaystyle 30,000$
To Premium on redemption of
Debentures A/c
(debentures issued at $\displaystyle 6$% premium,
redeemable at $\displaystyle 4$% premium on
redemption)
_________________________________
$\displaystyle 2023$ (iii)
Mar $\displaystyle 31$ Securities Premium A/c Dr. $\displaystyle 30,000$
To Loss on Issue of $\displaystyle 30,000$
Debentures A/c
(Loss on issue of debentures written off)
__________________________________
(b)
Dr Loss on issue of Issue of Debentures A/c Cr
Date Particulars Amount Date Particulars Amount
₹ ₹
$\displaystyle 1.4.22$ To Premium on $\displaystyle 30,000$ $\displaystyle 31.3.23$ By Securities $\displaystyle 30,000$
Redemption of Premium A/c
Debentures A/c
$\displaystyle 30,000$ $\displaystyle 30,000$
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.