✓ Board-verified
Accountancy · 2023 · 6 marks
CBSE 2023 · Region 4 · Set 1 · Q23
Pass necessary journal entries for issue of $\displaystyle 12$% debentures in the books of Ghanshyam Ltd. in the following cases : (i) Issued $\displaystyle 1,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$%. (ii) Issued $\displaystyle 5,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at par. (iii) Issued $\displaystyle 2,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$%.
Marking-scheme solution
Books of Ghanshyam Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
(i)a
Bank A/c Dr. $\displaystyle 1,10,000$
To Debenture Application and Allotment A/c $\displaystyle 1,10,000$
(Receipt of application money on $\displaystyle 1000$, $\displaystyle 12$%
debentures of ₹$\displaystyle 100$ each at a premium of $\displaystyle 10$%)
(i)
b
Debentures Application and allotment A/c Dr. $\displaystyle 1,10,000$
Loss on issue of debentures A/c Dr. $\displaystyle 5,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 1,00,000$
To Securities Premium / $\displaystyle 10,000$
Securities Premium Reserve A/c
To Premium on redemption of Debentures A/c $\displaystyle 5,000$
(Transfer of debenture application money to
debentures, Securities premium and provision for
premium on redemption of debentures made)
(ii)
a
Bank A/c Dr. $\displaystyle 5,50,000$
To Debenture Application and Allotment A/c $\displaystyle 5,50,000$
(Receipt of application money on $\displaystyle 5000$, $\displaystyle 12$%
debentures of ₹$\displaystyle 100$ each at a premium of $\displaystyle 10$%)
(ii)
b
Debentures Application and allotment A/c Dr. $\displaystyle 5,50,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 5,00,000$
To Securities Premium / $\displaystyle 50,000$
Securities Premium Reserve A/c
(Transfer of debenture application money to
debentures A/c and securities premium A/c)
(iii)
a
Bank A/c Dr. $\displaystyle 1,80,000$
To Debenture Application and Allotment A/c $\displaystyle 1,80,000$
(Receipt of application money on $\displaystyle 2000$, $\displaystyle 12$%
debentures of ₹$\displaystyle 100$ each at a discount of $\displaystyle 5$%)
(iii)
b
Debentures Application and Allotment A/c Dr. $\displaystyle 1,80,000$
Loss on issue of debentures A/c Dr. $\displaystyle 30,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 2,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 10,000$
(Transfer of debenture application money and
provision for premium on redemption of
debentures made)
Alternatively,
$\displaystyle 1,80,000$
Debentures Application and allotment A/c Dr.
$\displaystyle 20,000$
Discount on issue of debentures A/c Dr.
$\displaystyle 10,000$
Loss on issue of debentures A/c Dr.
$\displaystyle 2,00,000$
To $\displaystyle 12$% Debentures A/c
$\displaystyle 10,000$
To Premium on redemption of Debentures A/c
(Transfer of debenture application money and
provision for premium on redemption of
debentures made)
More from Issue and Redemption of Debentures
- Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed…2024
- Debentures which can be transferred by way of delivery and the company does not keep any record of the…2025
- Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase…2023
- On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total…2024
- Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from…2022
- Shivalik Ltd. issued 7% debentures of 2 100 each at a discount of 5% on 1st April, 2023. Discount on issue of…2025
- The debentures which do not carry a specific rate of interest are called:2024
- Debentures in respect of which all details including names, addresses and particulars of holding of the…2025
CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.