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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 4 · Set 3 · Q26
Pass necessary journal entries relating to issue of debentures and to write off discount/loss on issue of debentures in the books of Srijan Ltd. in the following cases : (i) $\displaystyle 900$, $\displaystyle 6$% debentures of ₹ $\displaystyle 1,000$ each are issued at $\displaystyle 5$% discount and redeemable at par. Balance in Securities Premium account is ₹ $\displaystyle 50$,000. (ii) $\displaystyle 700$, $\displaystyle 8$% debentures of ₹ $\displaystyle 1,000$ each are issued at $\displaystyle 10$% discount and redeemable at a premium of $\displaystyle 10$%. Balance in Securities Premium account is ₹ $\displaystyle 1,00$,000.
Marking-scheme solution
Books of Srijan Ltd.
Journal
Dat Par'culars L. Debit Credit
e F
Amount Amount
(₹)
(₹)
(i) Bank A/c Dr $\displaystyle 8,55,000$
To Debenture Applica-on and Allotment $\displaystyle 8,55,000$
A/c
(Applica-on money on $\displaystyle 6$% Debentures
received)
Debenture Applica-on and Allotment A/c Dr $\displaystyle 8,55,000$
Discount on issue of Debentures A/c Dr $\displaystyle 45,000$
$\displaystyle 9,00,000$
To $\displaystyle 6$% Debentures A/c
(Debentures applica-on money transferred
to $\displaystyle 6$% Debentures Account)
_____________________________________
Securi-es Premium A/c Dr
$\displaystyle 45,000$
To Discount on issue of Debentures A/c $\displaystyle 45,000$
(Discount on issue of debentures wriVen off)
(ii)
Bank A/c Dr $\displaystyle 6,30,000$
$\displaystyle 6,30,000$
To Debenture Applica-on and Allotment
A/c
(Applica-on money on $\displaystyle 8$% Debentures
received)
Debenture Applica-on and Allotment A/c Dr $\displaystyle 6,30,000$
Loss on issue of Debentures A/c Dr $\displaystyle 1,40,000$
To $\displaystyle 8$% Debentures A/c
$\displaystyle 7,00,000$
To Premium on redemp-on of Debentures
$\displaystyle 70,000$
A/c
(Debentures applica-on money transferred
to $\displaystyle 8$% Debentures A/c)
Alterna)vely
Debenture Applica-on 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
$\displaystyle 70,000$
To $\displaystyle 8$% Debentures A/c
$\displaystyle 7,00,000$
To Premium on redemp-on of Debentures
$\displaystyle 70,000$
A/c
(Debentures applica-on money transferred
to $\displaystyle 8$% Debentures A/c )
$\displaystyle 1,00,000$
Securi-es Premium A/c Dr
$\displaystyle 40,000$
Statement of Profit & Loss Dr
To Loss on issue of debentures A/c $\displaystyle 1,40,000$
(Loss on issue of debentures wriVen off)
Alterna)vely
Securi-es Premium A/c Dr $\displaystyle 1,00,000$
Statement of Profit & Loss Dr $\displaystyle 40,000$
To Discount on issue of Debentures A/c $\displaystyle 70,000$
To Loss on issue of debentures A/c $\displaystyle 70,000$
(Loss on issue of debentures wriVen off)
PART-B
OPTION -I
(Analysis of Financial Statements)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.