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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 4 · Set 2 · Q23
Pass necessary journal entries for issue of 12% Debentures in the books of Hemant Ltd. in the following cases: (i) Issued 1,000, 12% Debentures of ₹…
Pass necessary journal entries for issue of $\displaystyle 12$% Debentures in the books of Hemant Ltd. in the following cases : (i) Issued $\displaystyle 1,000$, $\displaystyle 12$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 8$%. (ii) Issued $\displaystyle 4,000$, $\displaystyle 12$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 5$%, redeemable at a premium of $\displaystyle 10$%. (iii) Issued $\displaystyle 5,000$, $\displaystyle 12$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at par.
Marking-scheme solution
Books of Hemant Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
(i)a
Bank A/c Dr. $\displaystyle 90,000$
To Debenture Application and Allotment A/c $\displaystyle 90,000$
(Receipt of application money on $\displaystyle 1000$, $\displaystyle 12$%
debentures of ₹$\displaystyle 100$ each at a discount of $\displaystyle 10$%)
(i)
b
Debentures Application and Allotment A/c Dr. $\displaystyle 90,000$
Loss on issue of debentures A/c Dr. $\displaystyle 18,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 1,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 8,000$
(Transfer of debenture application money and
provision for premium on redemption of
debentures made)
Alternatively,
Debentures Application and Allotment A/c Dr. $\displaystyle 90,000$
Discount on issue of debentures A/c Dr. $\displaystyle 10,000$
Loss on issue of debentures A/c Dr. $\displaystyle 8,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 1,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 8,000$
(Transfer of debenture application money and
provision for premium on redemption of
debentures made)
(ii)
a
Bank A/c Dr. $\displaystyle 4,20,000$
To Debenture Application and Allotment A/c $\displaystyle 4,20,000$
(Receipt of application money on $\displaystyle 4000$, $\displaystyle 12$%
debentures of ₹$\displaystyle 100$ each at a premium of $\displaystyle 5$%)
(ii)
b
Debentures Application and Allotment A/c Dr. $\displaystyle 4,20,000$
Loss on issue of debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 4,00,000$
To Securities Premium / $\displaystyle 20,000$
Securities Premium Reserve A/c
To Premium on redemption of Debentures A/c $\displaystyle 40,000$
(Transfer of debenture application money to
debentures A/c, Securities premium A/c and
provision for premium on redemption of
debentures made)
(iii)
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 $\displaystyle 10$%)
(iii)
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
debentures A/c and Securities premium A/c)
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.