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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 1 · Set 1 · Q24
On 1st April, $\displaystyle 2022$, Zubian Ltd. issued ₹ $\displaystyle 10,00,000$, $\displaystyle 7$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 6$%, redeemable at a premium of $\displaystyle 4$% after five years. The company had a balance of ₹ $\displaystyle 30,000$ in Securities Premium Account. (a) Pass necessary journal entries for issue of debentures and for Premium Account at the end of the first year itself. (b) 31st March, 2023.
Marking-scheme solution
(a)
Books of Zubian Ltd.
JOURNAL
Date Particulars L.F Dr. Amount Cr. Amount
(₹) (₹)
$\displaystyle 2022$ (i)
Apr $\displaystyle 1$ Bank A/c Dr. $\displaystyle 10,60,000$
To Debenture Application & $\displaystyle 10,60,000$
Allotment A/c
(Application money received on $\displaystyle 10,000$, $\displaystyle 7$%
Debentures)
_______________________________
(ii)
Apr $\displaystyle 1$
Debenture Application &
Allotment A/c Dr.
$\displaystyle 10,60,000$
Loss on issue of Issue of
Debentures A/c Dr.
$\displaystyle 40,000$
To $\displaystyle 7$% Debentures A/c
$\displaystyle 10,00,000$
To Securities Premium A/c
$\displaystyle 60,000$
To Premium on Redemption of
$\displaystyle 40,000$
Debentures A/c
(Debentures issued at $\displaystyle 6$% premium,
redeemable at $\displaystyle 4$% premium on redemption)
________________________________
(iii)
$\displaystyle 2023$
Securities Premium A/c Dr.
Mar $\displaystyle 31$ $\displaystyle 40,000$
To Loss on Issue of Debentures A/c
$\displaystyle 40,000$
(Loss on issue of debentures written off)
________________________________
(b)
Dr Loss on Issue of Debentures A/c Cr
Date Particulars Amount Date Particulars Amount
₹ ₹
$\displaystyle 1.4.22$ To Premium on $\displaystyle 40,000$ $\displaystyle 31.3.23$ By Securities $\displaystyle 40,000$
Redemption of Premium A/c
Debentures A/c
$\displaystyle 40,000$ $\displaystyle 40,000$
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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.