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Accountancy · 2025 · 3 marks
Issue and Redemption of DebenturesIssue of Debentures for Consideration other than Cash3 marksshort answer
CBSE 2025 · Region 6 · Set 3 · Q20
Sandhya Ltd. took over the assets of ₹ 50,00,000 and liabilities of ₹ 7,00,000 of Guman Ltd. for purchase consideration of ₹ 40,00,000. The payment…
Sandhya Ltd. took over the assets of ₹ $\displaystyle 50,00,000$ and liabilities of ₹ $\displaystyle 7,00,000$ of Guman Ltd. for purchase consideration of ₹ $\displaystyle 40,00$,000. The payment of purchase consideration was made by issue of $\displaystyle 9$% debentures of $\displaystyle 100$ each at a premium of $\displaystyle 25$% to Guman Ltd. Pass necessary journal entries for the above transactions in the books of Sandhya Ltd.
Pass necessary journal entries in the books of RR Ltd. for issue of debentures in the following cases : (i) Issued $\displaystyle 9,000$, $\displaystyle 9$% debentures of T $\displaystyle 100$ each at a discount of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years. (ii) Issued $\displaystyle 5,000$, $\displaystyle 11$% debentures of T $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 5$% after $\displaystyle 5$ years.
Marking-scheme solution
In the books of Sandhya Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount(₹) Amount(₹)
Sundry Assets A/c Dr. $\displaystyle 50,00,000$
To Sundry Liabilities A/c $\displaystyle 7,00,000$
To Guman Ltd. $\displaystyle 40,00,000$
To Capital Reserve A/c $\displaystyle 3,00,000$
(Assets and liabilities of Guman Ltd.
taken over )
Guman Ltd. Dr. $\displaystyle 40,00,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 32,00,000$
To Securities Premium A/c $\displaystyle 8,00,000$
(Purchase consideration settled by
issue of $\displaystyle 32,000$ $\displaystyle 9$% debentures of
₹$\displaystyle 100$ each at $\displaystyle 25$% premium)
Q.(b) Pass necessary journal entries in the books of ………………..
Ans.
In the books of RR Ltd.
Journal
Date Particulars L.F. Dr. Cr.
Amount(₹) Amount(₹)
(i)
Bank A/c Dr.
$\displaystyle 8,10,000$
To Debenture Application and Allotment A/c
$\displaystyle 8,10,000$
(Application money received on $\displaystyle 9000$ $\displaystyle 9$%
debentures of ₹$\displaystyle 100$ each issued at $\displaystyle 10$%
discount)
Debenture Application and Allotment A/c Dr. $\displaystyle 8,10,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 1,35,000$
To $\displaystyle 9$% Debentures A/c $\displaystyle 9,00,000$
To Premium on Redemption of $\displaystyle 45,000$
Debentures A/c
($\displaystyle 9,000$ $\displaystyle 9$% debentures of ₹$\displaystyle 100$ each, issued
at $\displaystyle 10$% discount, redeemable at $\displaystyle 5$%
premium)
Debenture Application and Allotment A/c Dr.
$\displaystyle 8,10,000$
Discount on issue of Debentures A/c Dr.
$\displaystyle 90,000$
Loss on issue of Debentures A/c Dr.
$\displaystyle 45,000$
To $\displaystyle 9$% Debentures A/c
$\displaystyle 9,00,000$
To Premium on Redemption of
$\displaystyle 45,000$
Debentures A/c
($\displaystyle 9,000$ $\displaystyle 9$% debentures of ₹$\displaystyle 100$ each, issued at
$\displaystyle 10$% discount, redeemable at $\displaystyle 5$% premium)
Date Particulars L.F. Dr. Cr.
Amount(₹) Amount(₹)
(ii)
Bank A/c Dr. $\displaystyle 5,50,000$
To Debenture Application and Allotment A/c $\displaystyle 5,50,000$
(Application money received on $\displaystyle 5,000$ $\displaystyle 11$%
debentures of ₹$\displaystyle 100$ each issued at $\displaystyle 10$%
premium)
Debenture Application and Allotment A/c Dr. $\displaystyle 5,50,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 25,000$
To $\displaystyle 11$% Debentures A/c $\displaystyle 5,00,000$
To Securities Premium A/c $\displaystyle 50,000$
To Premium on redemption of $\displaystyle 25,000$
Debentures A/c
($\displaystyle 5,000$ $\displaystyle 11$% debentures of ₹$\displaystyle 100$ each, issued
at $\displaystyle 10$% premium, redeemable at $\displaystyle 5$%
premium )
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.