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Accountancy · 2022 · 5 marks
CBSE 2022 · Region 3 · Set 2 · Q9
Pass necessary journal entries for the issue of debentures in the following cases: (a) Issued 50,000, 9% debentures of ₹ 100 each at par redeemable…
Pass necessary journal entries for the issue of debentures in the following cases : (a) Issued $\displaystyle 50,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at par redeemable at par. (b) Issued $\displaystyle 10,000$, $\displaystyle 8$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 7$% premium redeemable at par. (c) Issued $\displaystyle 750$, $\displaystyle 8$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 10$% discount redeemable at par. (d) Issued $\displaystyle 1,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 5$% premium redeemable at $\displaystyle 8$% premium. ($\displaystyle 6$) Issued $\displaystyle 500$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 10$% discount redeemable at $\displaystyle 10$% premium.
Marking-scheme solution
Journal
Date Particulars L.F Debit Credit
Amount Amount
(₹) (₹)
(a) Bank A/c Dr. $\displaystyle 50,00,000$
To Debenture Application
and Allotment A/c $\displaystyle 50,00,000$
(Application money on
$\displaystyle 9$% Debentures received)
Debenture Application and
$\displaystyle 50,00,000$
Allotment A/c Dr.
To $\displaystyle 9$% Debentures A/c
$\displaystyle 50,00,000$
(Debentures application money
transferred to $\displaystyle 9$% Debentures
Account)
(b)
Bank A/c Dr. $\displaystyle 10,70,000$
To Debenture Application
$\displaystyle 10,70,000$
and Allotment A/c
(Application money on
$\displaystyle 8$% Debentures received)
Debenture Application and
Allotment A/c Dr. $\displaystyle 10,70,000$
$\displaystyle 10,00,000$
To $\displaystyle 8$% Debentures A/c
$\displaystyle 70,000$
To Securities Premium Reserve A/c
(Debentures application money
transferred to $\displaystyle 8$% Debentures and
Securities Premium account )
(c)
Bank A/c Dr. $\displaystyle 67,500$
To Debenture Application
$\displaystyle 67,500$
and Allotment A/c
(Application money on $\displaystyle 8$%
Debentures received)
Debenture Application and
Allotment A/c Dr. $\displaystyle 67,500$
Loss/Discount on issue of
Debentures A/c Dr. $\displaystyle 7,500$
To $\displaystyle 8$% Debentures A/c $\displaystyle 75,000$
(Debentures application money
transferred to $\displaystyle 8$% Debentures A/c)
(d)
Bank A/c Dr. $\displaystyle 1,05,000$
To Debenture Application
$\displaystyle 1,05,000$
and Allotment A/c
(Application money on $\displaystyle 9$%
Debentures received)
Debenture Application and
Allotment A/c Dr. $\displaystyle 1,05,000$
$\displaystyle 8,000$
Loss on issue of Debentures A/c Dr.
$\displaystyle 1,00,000$
To $\displaystyle 9$% Debentures A/c
To Securities Premium
$\displaystyle 5,000$
Reserve A/c
To Premium on redemption of
$\displaystyle 8,000$
Debentures A/c
(Debentures application money
transferred to $\displaystyle 9$% Debentures A/c)
(e)
Bank A/c Dr. $\displaystyle 45,000$
To Debenture Application and
$\displaystyle 45,000$
Allotment A/c
(Application money on $\displaystyle 9$%
Debentures received)
Debenture Application and
Allotment A/c Dr. $\displaystyle 45,000$
Loss on issue of debentures A/c Dr. $\displaystyle 10,000$
$\displaystyle 50,000$
To $\displaystyle 9$% Debentures A/c
To Premium on Redemption of
$\displaystyle 5,000$
Debentures A/c
(Debentures application money
transferred to $\displaystyle 9$% Debentures A/c
and Premium on debenture account)
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CBSE Class 12 Accountancy past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.