✓ Board-verified
Accountancy · 2023 · 6 marks
CBSE 2023 · Region 1 · Set 3 · Q26
Pass necessary journal entries relating to issue of debentures in the books of Shree Ltd. for the following transactions : (a) $\displaystyle 3,000$, $\displaystyle 7$% Debentures of ₹ $\displaystyle 100$ each are issued at $\displaystyle 10$% premium, redeemable at a premium of $\displaystyle 5$%. (b) $\displaystyle 2,000$, $\displaystyle 8$% Debentures of ₹ $\displaystyle 100$ each are issued at $\displaystyle 10$% premium, redeemable at par. (c) $\displaystyle 1,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each are issued at $\displaystyle 10$% discount, redeemable at $\displaystyle 10$% premium.
Marking-scheme solution
Books of Shree Ltd.
Journal
Date Particulars
Debit Credit
L.F
Amount Amount
(₹) (₹)
(a)
Bank A/c Dr. $\displaystyle 3,30,000$
To Debenture Application and Allotment A/c $\displaystyle 3,30,000$
(Debenture application money received on $\displaystyle 3,000$ $\displaystyle 7$%
debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 3,30,000$
Loss on issue of debentures A/c Dr. $\displaystyle 15,000$
To $\displaystyle 7$% Debentures A/c $\displaystyle 3,00,000$
To Securities premium/Securities premium reserve A/c $\displaystyle 30,000$
To Premium on redemption of Debentures A/c $\displaystyle 15,000$
(Debenture application money transferred to
debentures A/c and securities premium A/c)
(b)
Bank A/c Dr.
$\displaystyle 2,20,000$
To Debenture Application and Allotment A/c
$\displaystyle 2,20,000$
(Debenture application money received on $\displaystyle 2,000$ $\displaystyle 8$%
debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 2,20,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 2,00,000$
To Securities premium/Securities premium reserve A/c $\displaystyle 20,000$
(Debenture application money transferred to
debentures A/c and securities premium A/c)
(c)
Bank A/c Dr.
$\displaystyle 90,000$
To Debenture Application and Allotment A/c $\displaystyle 90,000$
(Debenture application money received on $\displaystyle 1,000$ $\displaystyle 9$%
debentures)
Debenture Application and Allotment A/c Dr. $\displaystyle 90,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 20,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 1,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 10,000$
(Debenture application money transferred to
debentures A/c)
Debenture Application and Allotment A/c Dr $\displaystyle 90,000$
Discount on issue of debentures A/c Dr. $\displaystyle 10,000$
Loss on issue of debentures A/c Dr. $\displaystyle 10,000$
To $\displaystyle 7$% Debentures A/c $\displaystyle 1,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 10,000$
(Debenture application money transferred to
debentures A/c)
PART B
OPTION-I
(Analysis of Financial Statements)
More from Issue and Redemption of Debentures
- Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed…2024
- Debentures which can be transferred by way of delivery and the company does not keep any record of the…2025
- Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase…2023
- On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total…2024
- Satnam Ltd. purchased Building worth ₹ 5,00,000, Plant worth ₹ 4,60,000 and Furniture worth ₹ 2,20,000 from…2022
- Shivalik Ltd. issued 7% debentures of 2 100 each at a discount of 5% on 1st April, 2023. Discount on issue of…2025
- The debentures which do not carry a specific rate of interest are called:2024
- Debentures in respect of which all details including names, addresses and particulars of holding of the…2025
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.