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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 2 · Set 3 · Q24
Pass necessary journal entries for the issue of debentures in the following cases : (i) Issued $\displaystyle 5,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years. (ii) Issued $\displaystyle 30,000$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 5$% and redeemable at par after $\displaystyle 5$ years. (iii) Issued $\displaystyle 8,750$, $\displaystyle 12$% debentures of ₹ $\displaystyle 100$ each at par, redeemable at par after $\displaystyle 5$ years.
Marking-scheme solution
Journal
Date Particulars L.F Debit Credit
Amount Amount
(₹) (₹)
(i) Bank A/c Dr. $\displaystyle 4,50,000$
To Debenture Application $\displaystyle 4,50,000$
and Allotment A/c
(Application money on
$\displaystyle 9$% Debentures received)
_____________________________
Debenture Application and
$\displaystyle 4,50,000$
Allotment A/c Dr
$\displaystyle 75,000$
Loss on issue of Debentures A/c Dr
$\displaystyle 5,00,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 25,000$
To Premium on redemption
of Debentures A/c
(Debentures application money
transferred to $\displaystyle 9$% Debentures
Account)
Or
Debenture Application and
$\displaystyle 4,50,000$
Allotment A/c Dr
$\displaystyle 25,000$
Loss on issue of Debentures A/c Dr
$\displaystyle 50,000$
Discount on issue of Debentures A/c Dr
$\displaystyle 5,00,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 25,000$
To Premium on redemption
of Debentures A/c
(Debentures application money
transferred to $\displaystyle 9$% Debentures
Account)
(ii)
Bank A/c Dr. $\displaystyle 31,50,000$
To Debenture Application
$\displaystyle 31,50,000$
and Allotment A/c
(Application money on $\displaystyle 12$%
Debentures received)
_____________________________
Debenture Application and
$\displaystyle 31,50,000$
Allotment A/c Dr.
To $\displaystyle 12$% Debentures A/c
$\displaystyle 30,00,000$
To Securities Premium A/c/
$\displaystyle 1,50,000$
Securities Premium Reserve A/c
(Debentures application money
transferred to $\displaystyle 12$% Debentures A/c
(iii)
and Securities Premium A/c)
Bank A/c Dr $\displaystyle 8,75,000$
To Debenture Application and
$\displaystyle 8,75,000$
Allotment A/c
(Application money on $\displaystyle 12$%
Debentures received)
______________________________
Debenture Application and
$\displaystyle 8,75,000$
Allotment A/c Dr
$\displaystyle 8,75,000$
To $\displaystyle 12$% Debentures A/c
(Debentures application money
transferred to $\displaystyle 9$% Debentures
Account)
Ganga Ltd. Invited…………………………………………..
Ans. (a)
Books of Ganga Ltd.
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
Bank A/c Dr $\displaystyle 30,000$
To Equity Share Application A/c $\displaystyle 30,000$
(Application money received on
$\displaystyle 15,000$ shares)
Equity Share Application A/c Dr $\displaystyle 30,000$
To Equity Share Capital A/c $\displaystyle 20,000$
To Equity Share Allotment A/c $\displaystyle 4,000$
To Bank A/c $\displaystyle 6,000$
(Application money transferred to
Equity share capital A/c, Excess
money received adjusted towards
allotment and money refunded on
rejected applications)
Equity Share Allotment A/c Dr $\displaystyle 30,000$
To Equity Share Capital A/c $\displaystyle 30,000$
(Amount due on allotment)
Bank A/c Dr $\displaystyle 25,480$
Calls in Arrears A/c Dr $\displaystyle 520$
To Equity Share Allotment A/c $\displaystyle 26,000$
(Allotment money received except
that on $\displaystyle 200$ shares)
Equity Share Capital A/c Dr $\displaystyle 1,000$
To Calls in Arrears A/c $\displaystyle 520$
To Forfeited Shares A/c $\displaystyle 480$
(Forfeiture of $\displaystyle 200$ shares for non
payment of allotment money)
Equity Share First Call A/c Dr $\displaystyle 29,400$
To Equity Share Capital A/c $\displaystyle 29,400$
(Money due on $\displaystyle 9,800$ shares on First
Call)
Bank A/c Dr $\displaystyle 29,400$
To Equity Share first call A/c $\displaystyle 29,400$
(Money received on First Call)
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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.