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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 1 · Set 1 · Q26
Pass necessary journal entries for the following transactions relating to the issue of debentures : (a) Gagan Limited issued ₹ $\displaystyle 10,00,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 5$%, redeemable at par after four years. (b) KS Limited issued ₹ $\displaystyle 10,00,000$, $\displaystyle 10$% Debentures of ₹ $\displaystyle 100$ each at par, redeemable at $\displaystyle 10$% premium after four years. (c) QR Limited issued ₹ $\displaystyle 10,00,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after five years.
Marking-scheme solution
Journal
Date
Debit Credit
Particulars L.F
Amount Amount
(₹) (₹)
(a)
Bank A/c Dr. $\displaystyle 10,50,000$
To Debenture Application and Allotment A/c $\displaystyle 10,50,000$
(Debenture application money received on $\displaystyle 10,000$
$\displaystyle 9$% debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 10,50,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 10,00,000$
To $\displaystyle 50,000$
Securities premium/Securities premium reserve A/c
(Debenture application money transferred to
debentures A/c and securities premium A/c)
(b)
$\displaystyle 10,00,000$
Bank A/c Dr.
$\displaystyle 10,00,000$
To Debenture Application and Allotment A/c
(Debenture application money received on $\displaystyle 10,000$
$\displaystyle 10$% debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 10,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 1,00,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 10,00,000$
To Premium on redemption of Debentures $\displaystyle 1,00,000$
A/c
(Debenture application money transferred to
debentures A/c)
(c)
$\displaystyle 9,00,000$
Bank A/c Dr.
$\displaystyle 9,00,000$
To Debenture Application and Allotment A/c
(Debenture application money received on $\displaystyle 10,000$
$\displaystyle 9$% debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 9,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 1,50,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 10,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 50,000$
(Debenture application money transferred to
debentures A/c)
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 $\displaystyle 9$% Debentures A/c $\displaystyle 10,00,000$
To $\displaystyle 50,000$
Premium on redemption of Debentures A/c
(Debenture application money transferred to
debentures A/c)
PART B
OPTION-I
(Analysis of Financial Statements)
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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.