CBSE 2025, Set 1

Question

Pass necessary journal entries for issue of debentures for the following transactions:
(i) Kiero Ltd. issued 80,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 10%.
(ii) Naro Ltd. issued 50,000, 10% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Books of Kiero Ltd.** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Bank A/c ...Dr.     To Debenture Application and Allotment A/c (Debenture application money received) | | 80,00,000 | 80,00,000 | | | Debenture Application and Allotment A/c ...Dr. Loss on Issue of Debentures A/c ...Dr.     To 9% Debentures A/c     To Premium on Redemption of Debentures A/c (Debenture app money transferred to debentures and premium on redemption provided) | | 80,00,000 8,00,000 | 80,00,000 8,00,000 | **(ii) Books of Naro Ltd.** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | | Bank A/c ...Dr.     To Debenture Application and Allotment A/c (Debenture application money received) | | 52,50,000 | 52,50,000 | | | Debenture Application and Allotment A/c ...Dr. Loss on Issue of Debentures A/c ...Dr.     To 10% Debentures A/c     To Securities Premium A/c     To Premium on Redemption of Debentures A/c (Debenture app money transferred and premium on redemption provided) | | 52,50,000 5,00,000 | 50,00,000 2,50,000 5,00,000 |

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Accountancy > Accounting For Companies > Issue Of Debentures

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