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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 2 · Set 2 · Q24
Pass necessary journal entries for the issue of debentures in the following cases : (i) Issued ₹ $\displaystyle 7,00,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 20$%, redeemable at a premium of $\displaystyle 10$% after $\displaystyle 6$ years. (ii) Issued $\displaystyle 10,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at $\displaystyle 10$% discount, redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years. (iii) Issued $\displaystyle 75,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at par, redeemable at a premium of $\displaystyle 10$% after three years.
Marking-scheme solution
Journal
Date Particulars L. Debit Credit
F Amount Amount
(₹) (₹)
(i) Bank A/c Dr $\displaystyle 8,40,000$
$\displaystyle 8,40,000$
To Debenture Application and
Allotment A/c
(Application money on $\displaystyle 9$% Debentures
received)
$\displaystyle 8,40,000$
Debenture Application and Allotment A/c Dr
Loss on issue of Debentures A/c Dr $\displaystyle 70,000$
$\displaystyle 7,00,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 1,40,000$
To Securities Premium A/c/
Securities Premium Reserve A/c
To Premium on redemption
$\displaystyle 70,000$
of Debentures A/c
(Debentures application money transferred
to $\displaystyle 9$% Debentures Account)
(ii)
Bank A/c Dr $\displaystyle 9,00,000$
$\displaystyle 9,00,000$
To Debenture Application and
Allotment A/c
(Application money on $\displaystyle 12$% Debentures
received)
__________________________________
Debenture Application and Allotment A/c Dr
$\displaystyle 9,00,000$
Loss on issue of Debentures A/c Dr
$\displaystyle 1,50,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 10,00,000$
$\displaystyle 50,000$
To Premium on redemption of
Debentures A/c
(Debentures application money
transferred to $\displaystyle 12$% Debentures A/c)
Or
Debenture Application and
Allotment A/c Dr
$\displaystyle 9,00,000$
Loss on issue of Debentures A/c Dr $\displaystyle 50,000$
$\displaystyle 1,00,000$
Discount on issue of Debentures A/c Dr
$\displaystyle 10,00,000$
To $\displaystyle 12$% Debentures A/c
To Premium on redemption of
$\displaystyle 50,000$
Debentures A/c
(Debentures application money
transferred to $\displaystyle 12$% Debentures A/c)
$\displaystyle 75,00,000$
(iii)
Bank A/c Dr
$\displaystyle 75,00,000$
To Debenture Application and
Allotment A/c
(Application money on $\displaystyle 12$%
Debentures received)
Debenture Application and
Allotment A/c Dr
$\displaystyle 75,00,000$
Loss on issue of debentures A/c Dr
$\displaystyle 7,50,000$
To $\displaystyle 12$% Debentures A/c $\displaystyle 75,00,000$
$\displaystyle 7,50,000$
To Premium on Redemption of
Debentures A/c
(Debentures application money transferred
to $\displaystyle 12$% Debentures A/c )
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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.