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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 2 · Set 3 · Q21
Pass necessary journal entries in the books of Mitali Ltd. for issue of debentures in the following cases : (i) Issued $\displaystyle 7,000$, $\displaystyle 9$% debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years. (ii) Issued $\displaystyle 8,000$, $\displaystyle 11$% debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years.
Marking-scheme solution
(i)
Books of Mitali Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 6,30,000$
To Debenture Application and Allotment A/c $\displaystyle 6,30,000$
(Application money received on $\displaystyle 7,000$ debentures of
₹$\displaystyle 100$ each at a discount of $\displaystyle 10$%)
Debenture Application and Allotment A/c Dr. $\displaystyle 6,30,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 1,05,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 7,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 35,000$
(Debenture application money transferred to
debentures account and premium on redemption of
debentures account)
Alternatively
Debenture Application and Allotment A/c Dr. $\displaystyle 6,30,000$
Discount on Issue of Debentures A/c Dr. $\displaystyle 70,000$
Loss on Issue of Debentures A/c Dr. $\displaystyle 35,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 7,00,000$
To Premium on Redemption of Debentures A/c $\displaystyle 35,000$
(Debenture application money transferred to
debentures account and premium on redemption of
debentures account)
(ii)
Books of Mitali Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c $\displaystyle 8,80,000$
Dr.
To Debenture Application and Allotment A/c $\displaystyle 8,80,000$
(Application money received on $\displaystyle 8,000$ debentures of
₹$\displaystyle 100$ each at a premium of $\displaystyle 10$%)
$\displaystyle 9$
Dr. $\displaystyle 8,80,000$
Debenture Application and Allotment A/c
Loss on Issue of Debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 10$% Debentures A/c $\displaystyle 8,00,000$
To Securities Premium A/c $\displaystyle 80,000$
To Premium on Redemption of Debentures A/c $\displaystyle 40,000$
(Debenture application money transferred to
debentures account, securities premium account and
premium on redemption of debentures account)
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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.