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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 1 · Set 1 · Q21
On 1st April, 2024 Bhumika Ltd. issued 500, 9% debentures of ₹ 500 each at a discount of 10% redeemable at a premium of 6% after five years. On 31st…
On 1st April, $\displaystyle 2024$ Bhumika Ltd. issued $\displaystyle 500$, $\displaystyle 9$% debentures of ₹ $\displaystyle 500$ each at a discount of $\displaystyle 10$% redeemable at a premium of $\displaystyle 6$% after five years. On 31st March, $\displaystyle 2025$ the company had a balance of ₹ $\displaystyle 30,000$ in its Securities Premium Account. Pass necessary journal entries for issue of $\displaystyle 9$% Debentures and writing off Loss on issue of Debentures. Also prepare 'Loss on Issue of Debentures Account'.
Marking-scheme solution
Books of Bhumika Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
$\displaystyle 2024$
Apr.1 Bank A/c Dr. $\displaystyle 2,25,000$
To Debenture Application and Allotment A/c $\displaystyle 2,25,000$
(Debenture application money received)
” Debenture Application and Allotment A/c Dr. $\displaystyle 2,25,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 2,50,000$
To Premium on Redemption of Debentures A/c $\displaystyle 15,000$
(Debenture application money transferred to
debentures and premium on redemption of debentures
account)
$\displaystyle 2025$
Mar.31 Securities Premium A/c Dr. $\displaystyle 30,000$
Statement of Profit and Loss Dr. $\displaystyle 10,000$
To Loss on Issue of Debentures A/c $\displaystyle 40,000$
(Loss on issue of debentures written off)
Dr. Loss on Issue of Debentures A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
$\displaystyle 2024$ $\displaystyle 2025$
Apr.1 To $\displaystyle 9$% Debentures A/c $\displaystyle 25,000$ Mar.31 By Securities Premium $\displaystyle 30,000$
A/c
” To Premium on Redemption of $\displaystyle 15,000$ ” By Statement of Profit $\displaystyle 10,000$
Debentures A/c and Loss
$\displaystyle 40,000$ $\displaystyle 40,000$
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.