Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.1 - Issue of Debentures

Question 1 Kiosk Ltd. issued 40,000; 10% Debentures of ₹100 each at par, for cash, payable in full along with the application. Applications were received for 60,000 debentures. Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company. Solution JOURNAL (Books of Kiosk Ltd.) DateParticularsL.F.Dr. (₹)Cr. (₹) Bank A/c (60,000 × ₹100) Dr.60,00,000 To Debenture Application and

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.2 - Issue of Debentures

Question 2 Pariey Ltd. issued 2,000; 9% Debentures of ₹100 each, payable: ₹25 on application, ₹25 on allotment, and ₹50 on first and final call. Applications were received for all the debentures along with the application money, and allotment was made. Call money was also received on the due date. Pass the necessary Journal entries in the books of the company. Solution JOURNAL (Books of Pariey Ltd.) DateParticularsL.F.Dr. (₹)Cr. (₹) Bank A/c &nbsp

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.3 - Issue of Debentures

Question 3 Sangam Ltd. issued 2,000; 9% Debentures of ₹100 each, on the following terms: ₹20 on application, ₹20 on allotment, ₹30 on first call, ₹30 on final call. The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures, and applications for 200 debentures were rejected. Pass the necessary Journal entries. Solution JOURNAL (Books of Sangam Ltd.) DateParticularsL.

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.6 - Issue of Debentures

Question 6 Nipa Ltd. issued 10,000 Debentures of ₹100 each (total value ₹10,00,000) at a premium of 10%, payable 25% on application (including premium), and the balance on allotment. The debentures were fully applied for and the amount was duly received. You are required to give Journal entries and prepare the Cash Book. Solution Face Value of Debenture = ₹100. Premium (₹100 × 10%) = ₹10. Issue Price = ₹110. On Application (25%) = ₹25, including pre

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.7 - Issue of Debentures

Question 7 GT Ltd. issued 5,000; 8% Debentures of ₹100 each at a premium of 5%, payable as follows: ₹10 on application, ₹20 (along with premium) on allotment, and the balance on the first and final call. Pass the necessary Journal entries. Solution JOURNAL (Books of GT Ltd.) DateParticularsL.F.Dr. (₹)Cr. (₹) Bank A/c Dr.50,000 To 8% Debenture Application A/c50,000 (Debenture application money received for 5,000 debentures at &#83

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.8 - Issue of Debentures

Question 8 Nikki Ltd. issued 10,000, 9% Debentures of ₹100 each at a premium of ₹20 per debenture. The issue price was payable as follows: ₹40 on application, ₹50 (including premium) on allotment, and the balance on the first and final call. It received ₹4,00,000 as application money. On allotment, the due amount was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries. Solution JOURNAL (Books of Nikki Ltd.) D

Q: T.S. Grewal Class 12 Vol 2 Chapter 2 Q.10 - Issue of Debentures

Question 10 Kamya Ltd. issued 30,000, 8% Debentures of ₹100 each at 10% premium for subscription. The issue price was payable ₹40 on application, ₹40 (including premium) on allotment, and the balance on the first and final call. It received application money amounting to ₹10,80,000. Allotment was made and the allotment money was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries. Solution JOURNAL (Books of Kamya Lt

Question 1

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.1 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 1
Kiosk Ltd. issued 40,000; 10% Debentures of &#8377;100 each at par, for cash, payable in full along with the application. Applications were received for 60,000 debentures. Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.
Solution
JOURNAL (Books of Kiosk Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c (60,000 &#215; &#8377;100)    Dr.60,00,000
   To Debenture Application and

Question 2

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.2 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 2
Pariey Ltd. issued 2,000; 9% Debentures of &#8377;100 each, payable: &#8377;25 on application, &#8377;25 on allotment, and &#8377;50 on first and final call. Applications were received for all the debentures along with the application money, and allotment was made. Call money was also received on the due date. Pass the necessary Journal entries in the books of the company.
Solution
JOURNAL (Books of Pariey Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c   &nbsp

Question 3

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.3 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 3
Sangam Ltd. issued 2,000; 9% Debentures of &#8377;100 each, on the following terms: &#8377;20 on application, &#8377;20 on allotment, &#8377;30 on first call, &#8377;30 on final call. The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures, and applications for 200 debentures were rejected. Pass the necessary Journal entries.
Solution
JOURNAL (Books of Sangam Ltd.)

DateParticularsL.

Question 4

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.4 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 4
Super Seals Ltd. issued 10,000, 8% Debentures of &#8377;100 each at par, for subscription, payable &#8377;40 on application, &#8377;30 on allotment, and the balance as first and final call. Debentures issued were fully applied for and allotment was made. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
Solution
JOURNAL (Books of Super Seals Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c    Dr.4,00,000
&nb

Question 5

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.5 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 5
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of &#8377;100 each at a premium of &#8377;35 per debenture. The full amount was payable on application. Applications were received for 10,000 debentures. Allotment was made to all the applicants on a pro-rata basis. Pass the necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
Solution
JOURNAL (Books of Narain Laxmi Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c (1

Question 6

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.6 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 6
Nipa Ltd. issued 10,000 Debentures of &#8377;100 each (total value &#8377;10,00,000) at a premium of 10%, payable 25% on application (including premium), and the balance on allotment. The debentures were fully applied for and the amount was duly received. You are required to give Journal entries and prepare the Cash Book.
Solution
Face Value of Debenture = &#8377;100. Premium (&#8377;100 &#215; 10%) = &#8377;10. Issue Price = &#8377;110.
On Application (25%) = &#8377;25, including pre

Question 7

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.7 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 7
GT Ltd. issued 5,000; 8% Debentures of &#8377;100 each at a premium of 5%, payable as follows: &#8377;10 on application, &#8377;20 (along with premium) on allotment, and the balance on the first and final call. Pass the necessary Journal entries.
Solution
JOURNAL (Books of GT Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c    Dr.50,000
   To 8% Debenture Application A/c50,000
(Debenture application money received for 5,000 debentures at &#83

Question 8

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.8 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 8
Nikki Ltd. issued 10,000, 9% Debentures of &#8377;100 each at a premium of &#8377;20 per debenture. The issue price was payable as follows: &#8377;40 on application, &#8377;50 (including premium) on allotment, and the balance on the first and final call. It received &#8377;4,00,000 as application money. On allotment, the due amount was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
Solution
JOURNAL (Books of Nikki Ltd.)

D

Question 9

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.9 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 9
Raja Products Ltd. issued 5,000; 9% Debentures of &#8377;100 each at a premium of &#8377;40, payable as follows: (i) &#8377;40, including premium of &#8377;10, on application; (ii) &#8377;45, including premium of &#8377;15, on allotment; and (iii) the balance as first and final call. The issue was subscribed and allotment made. Calls were made and the due amount was received. Pass Journal entries.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c (5,000 &#215; &

Question 10

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.10 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 10
Kamya Ltd. issued 30,000, 8% Debentures of &#8377;100 each at 10% premium for subscription. The issue price was payable &#8377;40 on application, &#8377;40 (including premium) on allotment, and the balance on the first and final call. It received application money amounting to &#8377;10,80,000. Allotment was made and the allotment money was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
Solution
JOURNAL (Books of Kamya Lt

Question 11

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.11 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 11
Kati Ltd. issued 8,000, 9% Debentures of &#8377;100 each at a discount of 10%. The full amount was payable on application. Applications were received for 9,000 debentures, and allotment was made on a pro-rata basis. Pass the necessary Journal entries for the above transactions in the books of Kati Ltd. (CBSE 2020)
Solution
JOURNAL (Books of Kati Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c    Dr.8,10,000
   To 9% Debenture Application an

Question 12

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.12 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 12
Linux Ltd. issued 12,000; 8% Debentures of &#8377;100 each at a discount of 5%, payable 25% on application, 20% on allotment, and the balance after three months. Pass Journal entries.
Solution
Face Value of Debenture = &#8377;100. Discount (&#8377;100 &#215; 5%) = &#8377;5. Issue Price = &#8377;95.
On Application (25%) = &#8377;25 per debenture. On Allotment (20%) = &#8377;20 (25 &#8722; 5) per debenture. On First and Final Call (50%) = &#8377;50 per debenture.
JOURNAL

DateParticula

Question 13

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.13 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 13
Alka Ltd. issued 5,000, 10% Debentures of &#8377;1,000 each at a discount of 10%, redeemable at a premium of 5% after 5 years. According to the terms of issue, &#8377;500 was payable on application and the balance amount on allotment of debentures. Record the necessary entries regarding the issue of the 10% Debentures. (Delhi 2015 C)
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c (5,000 &#215; &#8377;500)    Dr.25,00,000
   To D

Question 14

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.14 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 14
The Decor Ltd. issued 20,000, 6% Debentures of &#8377;100 each at a 10% discount, payable &#8377;30 on application, &#8377;40 (after discount) on allotment, and the balance as first and final call. The debentures were subscribed and allotment was made. The amount due on allotment was received. The first and final call is yet to be made. You are required to pass the necessary Journal entries.
Solution
JOURNAL (Books of Decor Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/

Question 15

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.15 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 15
On 1st October, 2022, Ninza Ltd. issued 4,000, 8% Debentures of &#8377;100 each at a discount of 10%. The company had a balance of &#8377;50,000 in the Securities Premium Account on the same date. Pass the necessary Journal entries for the issue of debentures and to write off the discount on issue of debentures. (CBSE 2024)
Solution
JOURNAL (Books of Ninza Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c    Dr.3,60,000
   To Debenture Applic

Question 16

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.16 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 16
Joy Ltd. bought a Building for &#8377;9,00,000, and the consideration was paid by issuing 10% Debentures of the nominal (face) value of &#8377;100 each at a discount of 10%. Give Journal entries.
Solution
JOURNAL (Books of Joy Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Building A/c    Dr.9,00,000
   To Vendor A/c9,00,000
(Building purchased)
Vendor A/c    Dr.9,00,000
Discount on Issue of Debentures A/c    Dr.1,00,0

Question 17

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.17 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 17
Amrit Ltd. issued 1,000; 6% Debentures of &#8377;100 each to each of Amrit and Bhaskar (Promoters) for their services in incorporating the company. Pass the Journal entry.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Incorporation Cost A/c (2,000 &#215; &#8377;100)    Dr.2,00,000
   To 6% Debentures A/c2,00,000
(1,000 debentures each issued to the promoters, Amrit and Bhaskar, for their services in incorporating the company)

Question 18

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.18 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 18
B Ltd. issued 9% Debentures of &#8377;100 each at a premium of 20% to vendors for the purchase of plant costing &#8377;6,00,000. Pass the necessary Journal entry for the payment made to vendors. (CBSE 2020)
Solution
JOURNAL (Books of B Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Plant A/c    Dr.6,00,000
   To Vendor&#8217;s A/c6,00,000
(Plant purchased)
Vendor&#8217;s A/c    Dr.6,00,000
   To 9% Debentures A/c5,00,0

Question 19

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.19 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 19
Ananya Ltd. purchased an established business for &#8377;2,00,000, payable as &#8377;65,000 by cheque and the balance by issuing 9% Debentures of &#8377;100 each at a discount of 10%. Give the Journal entries in the books of Ananya Ltd.
Solution
JOURNAL (Books of Ananya Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Sundry Assets A/c    Dr.2,00,000
   To Vendor A/c2,00,000
(Business purchased)
Vendor A/c    Dr.65,000
  &nbs

Question 20

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.20 - Issue of Debentures

Sarbjit Singh · Accepted Answer

Question 20
Romi Ltd. acquired assets of &#8377;20 lakhs and took over creditors of &#8377;2 lakhs from Kapil Enterprises. Romi Ltd. issued 8% Debentures of &#8377;100 each at a discount of 10% as purchase consideration. Record the necessary Journal entries in the books of Romi Ltd.
Solution
JOURNAL (Books of Romi Ltd.)

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Assets A/c    Dr.20,00,000
   To Creditors A/c2,00,000
   To Kapil Enterprises A/c18,0

Particulars	Dr. (₹)	Cr. (₹)
Bank A/c (60,000 × ₹100) Dr.	60,00,000
To Debenture Application and Allotment A/c		60,00,000
(Application money received on 60,000 debentures)
Debenture Application and Allotment A/c Dr.	60,00,000
To 10% Debentures A/c (40,000 × ₹100)		40,00,000
To Bank A/c		20,00,000
(Application money transferred to 10% Debentures Account; excess application money on 20,000 debentures refunded)

T.S. Grewal Class 12 Vol 2 2025-2026 Solutions Chapter 2 - Issue of Debentures

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Table of Contents

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.1 - Issue of Debentures

Question 1

Solution

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.2 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.3 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.4 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.5 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.6 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.7 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.8 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.9 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.10 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.11 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.12 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.13 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.14 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.15 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.16 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.17 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.18 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.19 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.20 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.21 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.22 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.23 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.24 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.25 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.26 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.27 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.28 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.29 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.30 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.31 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.32 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.33 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.34 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.35 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.36 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.37 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.38 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.39 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.40 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.41 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.42 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.43 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.44 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.45 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.46 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.47 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.48 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.49 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.50 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.51 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.52 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.53 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.54 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.55 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.56 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.57 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.58 - Issue of Debentures

T.S. Grewal Class 12 Vol 2 Chapter 2 Q.59 - Issue of Debentures

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