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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 1 · Set 3 · Q24
On 1st April, $\displaystyle 2022$, Zoltas Ltd. issued $\displaystyle 20,000$ $\displaystyle 7$% Debentures of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 5$%, redeemable at par after five years. The company had a balance of ₹ $\displaystyle 70,000$ in Securities Premium Account. (a) Pass necessary journal entries for issue of debentures and for writing off 'Discount on Issue of Debentures' utilising Securities Premium Account at the end of first year itself. (b) Prepare 'Discount on Issue of Debentures Account' for the year ended 31st March, 2023.
Marking-scheme solution
(a)
Books of Zoltas Ltd.
JOURNAL
Date Particulars L.F Dr Amount Cr Amount
(₹) (₹)
$\displaystyle 2022$ (i)
Apr $\displaystyle 1$ Bank A/c Dr. $\displaystyle 19,00,000$
To Debenture Application & $\displaystyle 19,00,000$
Allotment A/c
(Application money received for
$\displaystyle 20,000$ $\displaystyle 7$% Debentures)
__________________________
(ii)
Apr $\displaystyle 1$
Debenture Application &
$\displaystyle 19,00,000$
Allotment A/c Dr.
Discount on issue of Issue of
$\displaystyle 1,00,000$
Debentures A/c Dr.
To $\displaystyle 7$% Debentures A/c
$\displaystyle 20,00,000$
(Debentures issued at $\displaystyle 5$% discount)
_____________________________
(iii)
Securities Premium A/c Dr.
$\displaystyle 2023$ $\displaystyle 70,000$
Statement of Profit and Loss Dr.
Mar $\displaystyle 30,000$
To Discount on Issue of
$\displaystyle 31$
$\displaystyle 1,00,000$
Debentures A/c
(Discount on issue of debentures
written off)
_____________________________
(b)
Dr Discount on Issue of Debentures A/c Cr
Date Particulars Amount Date Particulars Amount
₹ ₹
$\displaystyle 1.4.22$ To $\displaystyle 7$% $\displaystyle 1,00,000$ $\displaystyle 31.3.23$ By Securities $\displaystyle 70,000$
Debentures A/c Premium A/c
By Statement of
$\displaystyle 30,000$
Profit and Loss
$\displaystyle 1,00,000$ $\displaystyle 1,00,000$
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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.