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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 4 · Set 1 · Q26
Pass necessary journal entries relating to issue of debentures and to write off discount/loss on issue of debentures in the books of Ajanta Ltd. in the following cases : (i) $\displaystyle 200$, $\displaystyle 9$% debentures of ₹ $\displaystyle 1,000$ each are issued at $\displaystyle 10$% discount and redeemable at par. Balance in Securities Premium account is ₹ $\displaystyle 15$,000. (ii) $\displaystyle 300$, $\displaystyle 11$% debentures of ₹ $\displaystyle 1,000$ each are issued at $\displaystyle 5$% discount and redeemable at a premium of $\displaystyle 10$%. Balance in Securities Premium account is ₹ $\displaystyle 35$,000.
Marking-scheme solution
Books of Ajanta Ltd.
Journal
Date Particulars L. Debit Credit
F
Amount Amount
(₹)
(₹)
(i) Bank A/c Dr. $\displaystyle 1,80,000$
To Debenture Application and AllotmentA/c
$\displaystyle 1,80,000$
(Application money on $\displaystyle 9$% Debentures
received)
Debenture Application and Allotment A/c Dr. $\displaystyle 1,80,000$
Discount on issue of Debentures A/c Dr. $\displaystyle 20,000$
$\displaystyle 2,00,000$
To $\displaystyle 9$% Debentures A/c
(Debentures application money transferred
to $\displaystyle 9$% Debentures Account)
_____________________________________
Securities Premium A/c Dr.
$\displaystyle 15,000$
Statement of Profit & Loss Dr.
$\displaystyle 5,000$
To Discount on issue of Debentures A/c $\displaystyle 20,000$
(Discount on issue of debentures written off)
(ii)
Bank A/c Dr. $\displaystyle 2,85,000$
$\displaystyle 2,85,000$
To Debenture Application and Allotment A/c
(Application money on $\displaystyle 11$% Debentures
received)
Debenture Application and Allotment A/c Dr. $\displaystyle 2,85,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 45,000$
To $\displaystyle 11$% Debentures A/c
$\displaystyle 3,00,000$
To Premium on redemption of Debentures
$\displaystyle 30,000$
A/c
(Debentures application money transferred
to $\displaystyle 11$% Debentures A/c)
Alternatively
Debenture Application and Allotment A/c Dr
$\displaystyle 2,85,000$
Discount on issue of debentures A/c Dr
$\displaystyle 15,000$
Loss on issue of Debentures A/c Dr
$\displaystyle 30,000$
To $\displaystyle 11$% Debentures A/c
$\displaystyle 3,00,000$
To Premium on redemption of $\displaystyle 30,000$
Debentures A/c
(Debentures application money transferred
to $\displaystyle 11$% Debentures A/c )
$\displaystyle 35,000$
Securities Premium A/c Dr.
$\displaystyle 10,000$
Statement of Profit & Loss Dr.
To Loss on issue of Debentures A/c $\displaystyle 45,000$
(Loss on issue of debentures written off)
Alternatively
Securities Premium A/c Dr. $\displaystyle 35,000$
Statement of Profit & Loss Dr. $\displaystyle 10,000$
To Discount on issue of Debentures A/c $\displaystyle 15,000$
To Loss on issue of Debentures A/c $\displaystyle 30,000$
(Loss on issue of debentures written 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.