Question 1

Q.No.1 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionCraft Ltd. issued 10,000; 10% Debentures of ₹ 100 each at par payable on application. Applications were received for 10,000 debentures and debentures were allotted to all the applicants.Pass necessary Journal entries in the books of the company.SolutionJournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application and Allotment A/c(Being application money received on 10,000 debentures at ₹ 100 each)10,00,00010,00,000Debenture Application and Al

Question 2

Q.No.2 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionFortune Ltd. issued 2,000; 8% Debentures of ₹ 100 each payable as follows: ₹ 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. The call money was also received on due date.Pass necessary Journal entries in the books of the company.SolutionJournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application A/c(Being applicat

Question 3

Q.No.3 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionVoltas Ltd. issued 20,000; 10% Debentures of ₹ 100 each at a premium of 10% payable on application. Applications were received for the debentures issued and allotment was made.Pass the necessary Journal entries.SolutionJournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application and Allotment A/c(Being application money received on 20,000 debentures at ₹ 110)22,00,00022,00,000Debenture Application and Allotment A/c Dr.   To 10%

Question 4

Q.No.4 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionDate Palm 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 balance on first and final call.Pass necessary Journal entries and show the entries in the Balance Sheet.SolutionWorking NotesItemWorkingAmount (₹)Premium (received on allotment)5,000 × 525,000Allotment: face ₹ 15 + premium ₹ 5₹ 20 per debenture1,00,000First and final call100 − 10 − 15₹ 75 per debentureJournalDateParticularsL.F.Dr.

Question 5

Q.No.5 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionAirdrop Ltd. issued 6,000; 10% Debentures of ₹ 50 each at a premium of ₹ 15 payable as follows: (i) ₹ 15, including premium of ₹ 5, on application; (ii) ₹ 20, including premium of ₹ 10, on allotment; and (iii) balance as first and final call. Applications were received for 6,000 debentures and allotment was made. Calls were made and amounts due were received.Pass the Journal entries for the above.SolutionWorking NotesItemWorkingAmount (₹)Application ₹ 15: debenture ₹ 10 + premium ₹ 5Allo

Question 6

Q.No.6 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionUniversal Auto 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.SolutionJournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application and Allotment A/c(Being application money received on 60,000 debentures at ₹ 100)60,00,

Question 7

Q.No.7 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionPollock Ltd. issued 2,000; 9% Debentures of ₹ 100 each on the following terms: ₹ 20 on application; ₹ 20 on allotment; ₹ 30 on first call and ₹ 30 on final call. Applications were received 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 necessary Journal entries.SolutionNote: The 200 debentures applied for by the second group but not allotted

Question 8

Q.No.8 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionSmart Ltd. issued 5,000, 10% Debentures of ₹ 100 each, payable ₹ 30 on application and ₹ 70 on allotment. Applications were received for 4,000 debentures and debentures were allotted to all the applicants.Give the necessary Journal entries and Balance Sheet of Smart Ltd.SolutionNote: Only 4,000 of the 5,000 debentures offered were applied for, so only 4,000 are issued.JournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application A/c(Being appl

Question 9

Q.No.9 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionPark Regis Ltd. issued 2,500; 9% Debentures of ₹ 100 each at a discount of 10% payable along with application.Pass the Journal entries.SolutionJournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application and Allotment A/c(Being application money received on 2,500 debentures at ₹ 90)2,25,0002,25,000Debenture Application and Allotment A/c Dr.Discount on Issue of Debentures A/c Dr.   To 9% Debentures A/c(Being debentures allotted

Question 10

Q.No.10 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionCane Ltd. issued 10,000; 10% Debentures of ₹ 100 each at a discount of 10% payable ₹ 25 on application and balance on allotment.Pass Journal entries in the books of Cane Ltd.SolutionWorking NotesItemWorkingAmount (₹)Issue price100 − 10₹ 90Allotment money90 − 25₹ 65 per debentureDebenture money credited on allotment75 (100 − 25 on application)₹ 75JournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Bank A/c Dr.   To Debenture Application A/c(Being application money received

Question 11

Q.No.11 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionYouth Ltd. issued 5,000, 10% Debentures of ₹ 100 each credited as fully paid to the promoters for their services to incorporate the company and issued 2,000, 10% Debentures of ₹ 100 each as fully paid to the underwriters for their underwriting services.Journalise these transactions.SolutionNote: Services rendered in incorporating the company are a formation (preliminary) expense; the underwriters' services are underwriting commission, which is a share/debenture issue expense.JournalDateP

Question 12

Q.No.12 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionKarur Ltd. purchased a running business of Vysa Ltd. for ₹ 5,40,000 payable as ₹ 1,00,000 by cheque and the balance by issue of 9% Debentures of ₹ 100 each at a premium of 10%.Give Journal entries in the books of Karur Ltd.SolutionWorking NotesItemWorkingAmount (₹)Balance payable in debentures5,40,000 − 1,00,0004,40,000Issue price of a debenture100 + 10₹ 110Number of debentures4,40,000 ÷ 1104,000JournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Business Purchase A/c Dr.  &nbs

Question 13

Q.No.13 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionPatanjali Ltd. purchased machinery from Barun for an agreed purchase consideration of ₹ 6,30,000 to be satisfied by the issue of 10% Debentures of ₹ 100 each at 5% premium.Journalise the transactions.SolutionWorking NotesItemWorkingAmount (₹)Issue price100 + 5%₹ 105Number of debentures6,30,000 ÷ 1056,000JournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Machinery A/c Dr.   To Barun(Being machinery purchased from Barun)6,30,0006,30,000Barun Dr.   To 10% Debe

Question 14

Q.No.14 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionDownhill Ltd. purchased Plant and Machinery for ₹ 10,00,000 payable as ₹ 3,25,000 in cash and the balance by issue of 10% Debentures of ₹ 1,000 each issued at a discount of 10%.Pass Journal entries.SolutionWorking NotesItemWorkingAmount (₹)Balance payable in debentures10,00,000 − 3,25,0006,75,000Issue price1,000 − 10%₹ 900Number of debentures6,75,000 ÷ 900750JournalDateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)Plant and Machinery A/c Dr.   To Vendor(Being plant and machiner

Question 15

Q.No.15 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionPromising Company Ltd. took over assets of ₹ 2,50,000 and liabilities of ₹ 30,000 of Goneby Company for the purchase consideration of ₹ 3,30,000. Promising Company Ltd. paid the purchase consideration by issuing debentures of ₹ 100 each at 10% premium.Give Journal entries in the books of Promising Company Ltd.SolutionWorking NotesItemWorkingAmount (₹)Net assets taken over2,50,000 − 30,0002,20,000Purchase consideration3,30,000Excess = Goodwill3,30,000 − 2,20,0001,10,000Number of debenture

Question 16

Q.No.16 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionHero Ltd. purchased assets of the book value of ₹ 4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each at a discount of 10%.Give Journal entries in the books of Hero Ltd.SolutionNote: The consideration does not divide exactly by the issue price ₹ 90, so 4,222 debentures are issued (worth ₹ 3,79,980) and the balance ₹ 20 is paid in cash.Working NotesItemWorkingA

Question 17

Q.No.17 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionSure Ltd. purchased the assets of Sony Ltd. for ₹ 5,00,000. It also agreed to take over the liabilities of Sony Ltd. amounting to ₹ 2,00,000 for the purchase consideration of ₹ 2,80,000. The payment to Sony Ltd. was made by issue of 9% Debentures of ₹ 100 each at par.Pass necessary Journal entries in the books of the company.SolutionNote: The consideration (₹ 2,80,000) is less than the net assets taken over (₹ 3,00,000), so the difference of ₹ 20,000 is a Capital Reserve.Working NotesIte

Question 18

Q.No.18 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionBlue Prints Ltd. acquired assets of ₹ 50,00,000 and took over creditors of ₹ 5,00,000 from Yogesh Enterprises. Blue Prints Ltd. issued 9% Debentures of ₹ 100 each at a premium of 25% as purchase consideration.Record necessary Journal entries in the books of Blue Prints Ltd.SolutionNote: The purchase consideration is not stated; it is taken to be equal to the net assets taken over (₹ 50,00,000 − ₹ 5,00,000 = ₹ 45,00,000), so there is no goodwill or capital reserve. CONFIRM WITH THE BOOK.W

Question 19

Q.No.19 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionHi-tech Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Low-tech Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Hi-tech Ltd., assuming that: Case (a): the debentures are issued at par; Case (b): the debentures are issued at 20% premium; Case (c): the debentures are issued at 10% discount.SolutionWorking NotesItemWorkingAmount (₹)

Question 20

Q.No.20 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit Singh · Accepted Answer

QuestionDrumbeats Ltd. took a loan of ₹ 4,00,000 from AU Bank Ltd. and issued 8% Debentures of ₹ 4,00,000 as a collateral security.Explain how you will deal with the issue of debentures in the books of the company.SolutionNote: Debentures issued as a collateral (additional) security for a loan are not a real issue: no cash is received for them. The loan is the liability. There are two accepted treatments — the debentures are not recorded at all (only disclosed), or they are recorded through a De

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Bank A/c Dr. To Debenture Application and Allotment A/c (Being application money received on 10,000 debentures at ₹ 100 each)		10,00,000	10,00,000
	Debenture Application and Allotment A/c Dr. To 10% Debentures A/c (Being debentures allotted and the application money transferred to the Debentures Account)		10,00,000	10,00,000

T.S. Grewal ISC Class 12 Accountancy Solutions Chapter 8 - Issue of Debentures

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Table of Contents

Q.No.1 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Question

Solution

Journal

Q.No.2 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.3 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.4 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.5 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.6 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.7 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.8 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.9 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.10 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.11 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.12 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.13 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.14 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.15 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.16 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.17 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.18 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.19 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.20 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.21 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.22 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.23 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.24 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.25 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.26 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.27 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.28 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.29 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.30 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.31 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.32 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.33 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.34 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.35 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.36 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.37 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.38 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.39 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.40 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.41 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.42 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.43 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.44 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.45 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.46 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.47 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.48 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.49 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.50 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.51 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.52 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.53 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.54 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Q.No.55 | Chapter 8 – Issue of Debentures | T.S. Grewal ISC Class 12 Solution

Sarbjit SinghB.Com and M.Com