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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 4 · Set 3 · Q24
Pass the necessary journal entries for the issue of debentures in the books of Amrit Ltd. for the following transactions : (i) Issued ₹ $\displaystyle 10,00,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after three years. (ii) Issued ₹ $\displaystyle 30,00,000$, $\displaystyle 8$% Debentures of ₹ $\displaystyle 100$ each at par, redeemable at a premium of $\displaystyle 5$%. (iii) Issued $\displaystyle 6,000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$%.
Marking-scheme solution
Books of Amrit Ltd.
JOURNAL
Date Particulars L.F Dr. Cr.
Amount Amount
₹ ₹
(i)a
Bank A/c Dr. $\displaystyle 9,00,000$
To Debenture Application and Allotment A/c $\displaystyle 9,00,000$
(Receipt of application money on $\displaystyle 10,000$, $\displaystyle 9$%
debentures of ₹$\displaystyle 100$ each at a discount of $\displaystyle 10$%)
(i)
b
Debentures Application and Allotment A/c Dr. $\displaystyle 9,00,000$
Loss on issue of debentures A/c Dr. $\displaystyle 1,50,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 10,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 50,000$
(Transfer of debenture application money and
provision for premium on redemption of debentures
made)
Alternatively,
Debentures Application and allotment A/c Dr.
$\displaystyle 9,00,000$
Discount on issue of debentures A/c Dr.
$\displaystyle 1,00,000$
Loss on issue of debentures A/c Dr.
$\displaystyle 50,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 10,00,000$
To Premium on redemption of Debentures A/c
$\displaystyle 50,000$
(Transfer of debenture application money and
provision for premium on redemption of debentures
made)
(ii)
a
Bank A/c Dr. $\displaystyle 30,00,000$
To Debenture Application and Allotment A/c $\displaystyle 30,00,000$
(Receipt of application money on $\displaystyle 30,000$, $\displaystyle 8$%
debentures of ₹$\displaystyle 100$ each at par)
(ii)
b
Debentures Application and allotment A/c Dr. $\displaystyle 30,00,000$
Loss on issue of debentures A/c Dr. $\displaystyle 1,50,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 30,00,000$
To Premium on redemption of Debentures A/c $\displaystyle 1,50,000$
(Transfer of debenture application money and
provision for premium on redemption of debentures
made)
(iii)
a
Bank A/c Dr. $\displaystyle 6,60,000$
To Debenture Application and Allotment A/c $\displaystyle 6,60,000$
(Receipt of application money on $\displaystyle 6000$, $\displaystyle 9$%
debentures of ₹$\displaystyle 100$ each at a premium of $\displaystyle 10$%)
(iii)
b
Debentures Application and allotment A/c Dr. $\displaystyle 6,60,000$
Loss on issue of debentures A/c Dr. $\displaystyle 30,000$
To $\displaystyle 9$% Debentures $\displaystyle 6,00,000$
To Securities Premium /Securities Premium
Reserve A/c $\displaystyle 60,000$
To Premium on redemption of Debentures A/c $\displaystyle 30,000$
(Transfer of debenture application money to
debentures A/c , Securities premium A/c and
provision for premium on redemption of debentures
made)
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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.