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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 3 · Set 3 · Q21
Pass necessary journal entries for issue of debentures for the following transactions : (i) AB Ltd. issued $\displaystyle 30,000$, $\displaystyle 10$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 5$%, redeemable at a premium of $\displaystyle 10$%. (ii) CD Ltd. issued $\displaystyle 40,000$, $\displaystyle 8$% Debentures of $\displaystyle 100$ each at par, T redeemable at a premium of $\displaystyle 10$%.
Marking-scheme solution
(i)
Books of AB Ltd.
Journal
Date Particulars L. Dr. Amount Cr. Amount
F. (`) (`)
Bank A/c Dr. $\displaystyle 31,50,000$
To Debenture Application & Allotment A/c $\displaystyle 31,50,000$
(Debenture application money received on
$\displaystyle 30,000$ debentures @ `$\displaystyle 105$ per debenture)
Debenture Application & Allotment A/c Dr. $\displaystyle 31,50,000$
Loss on Issue of Debenture A/c Dr. $\displaystyle 3,00,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 30,00,000$
To Securities Premium A/c $\displaystyle 1,50,000$
To Premium on Redemption of Debenture A/c $\displaystyle 3,00,000$
(Application amount transferred to debentures
a/c, securities premium a/c and provision made
for premium on redemption of debentures)
(ii)
Books of CD Ltd.
Journal
Date Particulars L. Dr. Amount Cr. Amount
F. (`) (`)
Bank A/c Dr. $\displaystyle 40,00,000$
To Debenture Application & Allotment A/c $\displaystyle 40,00,000$
(Debenture application money received on
$\displaystyle 40,000$ debentures @ `$\displaystyle 100$ per debenture)
Debenture Application & Allotment A/c Dr. $\displaystyle 40,00,000$
Loss on Issue of Debenture A/c Dr. $\displaystyle 4,00,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 40,00,000$
To Premium on Redemption of Debenture A/c $\displaystyle 4,00,000$
(Application amount transferred to debentures
a/c and provision made for premium on
redemption of debentures)
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CBSE Class 12 Accountancy past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.