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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries for the issue of debentures for the following transactions: (i) Kajal Ltd. issued 30,000, 11% Debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5%. (ii) Ninja Ltd. issued 32,000, 8% Debentures of ₹100 each at a premium of ₹20 per debenture, redeemable at a premium of ₹10 per debenture. (iii) Him Ltd. issued 40,000, 13% Debentures of ₹100 each at par, redeemable at a premium of 10%. (CBSE 2024)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | Bank A/c Dr. | 27,00,000 | ||
| To Debentures Application and Allotment A/c | 27,00,000 | |||
| (Application money received for 30,000; 11% debentures) | ||||
| Debentures Application and Allotment A/c Dr. | 27,00,000 | |||
| Loss on Issue of Debentures A/c Dr. | 4,50,000 | |||
| To 11% Debentures A/c | 30,00,000 | |||
| To Premium on Redemption of Debentures A/c | 1,50,000 | |||
| (30,000; 11% Debentures of ₹100 each issued at a 10% discount, redeemable at a 5% premium; Loss on Issue combines the discount and the redemption premium) | ||||
| (ii) | Bank A/c Dr. | 38,40,000 | ||
| To Debentures Application and Allotment A/c | 38,40,000 | |||
| (Application money received for 32,000; 8% debentures) | ||||
| Debentures Application and Allotment A/c Dr. | 38,40,000 | |||
| Loss on Issue of Debentures A/c Dr. | 3,20,000 | |||
| To 8% Debentures A/c | 32,00,000 | |||
| To Securities Premium Reserve A/c | 6,40,000 | |||
| To Premium on Redemption of Debentures A/c | 3,20,000 | |||
| (32,000; 8% Debentures of ₹100 each issued at a premium of ₹20 per debenture, redeemable at a premium of ₹10 per debenture) | ||||
| (iii) | Bank A/c Dr. | 40,00,000 | ||
| To Debentures Application and Allotment A/c | 40,00,000 | |||
| (Application money received for 40,000; 13% debentures) | ||||
| Debentures Application and Allotment A/c Dr. | 40,00,000 | |||
| Loss on Issue of Debentures A/c Dr. | 4,00,000 | |||
| To 13% Debentures A/c | 40,00,000 | |||
| To Premium on Redemption of Debentures A/c | 4,00,000 | |||
| (40,000; 13% 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.40 - 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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