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Accountancy · 2025 · 4 marks
CBSE 2025 · Region 1 · Set 3 · Q21
Pass necessary journal entries for issue of debentures for the following transactions (i) Kiero Ltd. issued $\displaystyle 80,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at par, redeemable at a premium of $\displaystyle 10$%. (ii) Naro Ltd. issued $\displaystyle 50,000$, $\displaystyle 10$% debentures of? $\displaystyle 100$ each at a premium of $\displaystyle 5$%, redeemable at a premium of $\displaystyle 10$%.
Marking-scheme solution
(i)
Books of Kiero Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 80,00,000$
To Debenture Application and Allotment A/c $\displaystyle 80,00,000$
(Debenture application money received)
Debenture Application and Allotment A/c Dr. $\displaystyle 80,00,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 8,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 80,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 8,00,000$
(Debenture application money transferred to debentures and
premium on redemption of debentures account)
(ii)
Books of Naro Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 52,50,000$
To Debenture Application and Allotment A/c $\displaystyle 52,50,000$
(Debenture application money received)
Debenture Application and Allotment A/c Dr. $\displaystyle 52,50,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 5,00,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 50,00,000$
To Securities Premium A/c $\displaystyle 2,50,000$
To Premium on Redemption of Debentures A/c $\displaystyle 5,00,000$
(Debenture application money transferred to debentures and
premium on redemption of debentures account)
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CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.