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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 1 · Set 3 · Q21
On 1st April 2024, Yash Ltd. invited applications for issuing 20,000, 9% debentures of ₹ 100 each at a discount of 6%. These debentures were…
On 1st April $\displaystyle 2024$, Yash Ltd. invited applications for issuing $\displaystyle 20,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 6$%. These debentures were repayable at a premium of $\displaystyle 10$% after five years. The issue was fully subscribed and the debentures were allotted in full to all the applicants. On 31st March, $\displaystyle 2025$ the company had a balance of ₹ $\displaystyle 1,80,000$ in its Securities Premium Account. Pass necessary journal entries for the 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 Yash Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
$\displaystyle 2024$
Apr.1 Bank A/c Dr. $\displaystyle 18,80,000$
To Debenture Application and Allotment A/c $\displaystyle 18,80,000$
(Debenture application money received)
” Debenture Application and Allotment A/c Dr. $\displaystyle 18,80,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 3,20,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 20,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 2,00,000$
(Debenture application money transferred to
debentures and premium on redemption of
debentures account)
$\displaystyle 2025$
Mar.31 Securities Premium A/c Dr. $\displaystyle 1,80,000$
Statement of Profit and Loss Dr. $\displaystyle 1,40,000$
To Loss on Issue of Debentures A/c $\displaystyle 3,20,000$
(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 $\displaystyle 1,20,000$ Mar.31 By Securities $\displaystyle 1,80,000$
Premium A/c
” To Premium on $\displaystyle 2,00,000$ ” By Statement of $\displaystyle 1,40,000$
Redemption of Debentures Profit and Loss
A/c
$\displaystyle 3,20,000$ $\displaystyle 3,20,000$
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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.