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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 5 · Set 1 · Q21
Pass necessary journal entries for the issue of debentures for the following transactions : (i) XS Ltd. issued $\displaystyle 40,000$, $\displaystyle 9$% Debentures of $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$%. (ii) YG Ltd. issued $\displaystyle 50,000$, $\displaystyle 9$% Debentures of T $\displaystyle 100$ each at par, redeemable at a premium of $\displaystyle 10$%.
Marking-scheme solution
Books of XS Ltd.
Journal
Date Particulars L. Dr. Cr.
F. Amount(₹) Amount(₹)
(i)
Bank A/c Dr. $\displaystyle 44,00,000$
To Debenture Application and Allotment A/c $\displaystyle 44,00,000$
(Application money received on $\displaystyle 40,000$ $\displaystyle 9$%
debentures of ₹$\displaystyle 100$ each issued at $\displaystyle 10$% premium)
Debenture Application and Allotment A/c Dr. $\displaystyle 44,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 2,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 40,00,000$
To Securities Premium A/c $\displaystyle 4,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 2,00,000$
(Debentures application money transferred to
debentures A/c & securities premium A/c, and
premium on redemption of debentures account
created)
Books of YG Ltd.
Journal
Date Particulars L. Dr. Cr.
F.
Amount(₹) Amount(₹)
(ii)
Bank A/c Dr. $\displaystyle 50,00,000$
To Debenture Application and Allotment A/c $\displaystyle 50,00,000$
(Application money received on $\displaystyle 50,000$
$\displaystyle 9$%debentures of ₹$\displaystyle 100$ each issued at par)
Debenture Application and Allotment A/c Dr. $\displaystyle 50,00,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 5,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 50,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 5,00,000$
(Debentures application money transferred to
debentures A/c and premium on redemption of
debentures account created)
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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.