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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Chiranjeevi Ltd. issued 2,000, 10% Debentures of ₹100 each. Pass the necessary Journal entries for the issue of debentures in the following cases: (a) when debentures were issued at a 10% premium, redeemable at a 5% premium; (b) when debentures were issued at a 5% discount, redeemable at a 10% premium; (c) when debentures were issued at par, redeemable at a premium of 10%. (CBSE 2023)
Case (a)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 2,20,000 | |||
| To Debenture Application and Allotment A/c | 2,20,000 | |||
| (Application money received) | ||||
| Debenture Application and Allotment A/c Dr. | 2,20,000 | |||
| Loss on Issue of Debentures A/c Dr. | 10,000 | |||
| To 10% Debentures A/c | 2,00,000 | |||
| To Securities Premium Reserve A/c | 20,000 | |||
| To Premium on Redemption of Debentures A/c | 10,000 | |||
| (2,000; 10% Debentures of ₹100 each issued at a premium of 10%, redeemable at a premium of 5%) |
Case (b)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 1,90,000 | |||
| To Debenture Application and Allotment A/c | 1,90,000 | |||
| (Application money received) | ||||
| Debenture Application and Allotment A/c Dr. | 1,90,000 | |||
| Discount on Issue of Debentures A/c Dr. | 10,000 | |||
| Loss on Issue of Debentures A/c Dr. | 20,000 | |||
| To 10% Debentures A/c | 2,00,000 | |||
| To Premium on Redemption of Debentures A/c | 20,000 | |||
| (2,000; 10% Debentures of ₹100 each issued at a 5% discount, redeemable at a 10% premium) |
Case (c)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 2,00,000 | |||
| To Debenture Application and Allotment A/c | 2,00,000 | |||
| (Application money received) | ||||
| Debenture Application and Allotment A/c Dr. | 2,00,000 | |||
| Loss on Issue of Debentures A/c Dr. | 20,000 | |||
| To 10% Debentures A/c | 2,00,000 | |||
| To Premium on Redemption of Debentures A/c | 20,000 | |||
| (2,000; 10% Debentures of ₹100 each issued at par, redeemable at a premium of 10%) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.38 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Issue of Debentures.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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