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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 2 · Set 3 · Q23
Pass necessary journal entries for issue of debentures for the following transactions : (i) Suhavo Ltd. issued $\displaystyle 10,000$, $\displaystyle 11$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$%. (ii) Mudit Ltd. issued $\displaystyle 20,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 5$%, redeemable at a premium of $\displaystyle 10$%. (iii) Sudip Ltd. issued $\displaystyle 30,000$, $\displaystyle 8$% Debentures of ₹ $\displaystyle 100$ each at par, redeemable at a premium of $\displaystyle 5$%.
Marking-scheme solution
Books of Suhavo Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Bank A/c Dr. $\displaystyle 9,00,000$
To Debenture Application and Allotment A/c $\displaystyle 9,00,000$
(Receipt of application money on $\displaystyle 10,000$, $\displaystyle 11$%
Debentures of ₹$\displaystyle 100$ each at a discount of $\displaystyle 10$%)
Debenture Application and allotment A/c Dr. $\displaystyle 9,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 1,50,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 10,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 50,000$
(Transfer of Debenture application money and
provision for premium on redemption of
Debentures made)
($\displaystyle 2023$-$\displaystyle 24$) $\displaystyle 67$/$\displaystyle 2$/$\displaystyle 3$ Page $\displaystyle 10$ of
Alternatively,
Debenture Application and Allotment A/c Dr. $\displaystyle 9,00,000$
Discount on issue of Debentures A/c Dr. $\displaystyle 1,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 50,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 10,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 50,000$
(Transfer of debenture application money and
provision for premium on redemption of
Debentures made)
Books of Mudit Ltd.
Journal
Bank A/c Dr. $\displaystyle 21,00,000$
To Debenture Application and Allotment A/c $\displaystyle 21,00,000$
(Receipt of application money on $\displaystyle 20,000$, $\displaystyle 9$%
Debentures of ₹$\displaystyle 100$ each at premium of $\displaystyle 5$%)
Debenture Application and Allotment A/c Dr. $\displaystyle 21,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 2,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 20,00,000$
To Securities Premium A/c $\displaystyle 1,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 2,00,000$
(Transfer of Debenture application money and
provision for premium on redemption of
Debentures made)
Books of Sudip Ltd.
Journal
(a)
Bank A/c Dr. $\displaystyle 30,00,000$
To Debenture Application and Allotment A/c $\displaystyle 30,00,000$
(Receipt of application money on $\displaystyle 30,000$, $\displaystyle 8$%
Debentures of ₹$\displaystyle 100$ each)
(b)
Debenture Application and Allotment A/c Dr. $\displaystyle 30,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 1,50,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 30,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 1,50,000$
(Transfer of Debenture application money and
provision for premium on redemption of
Debentures made)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.