List of top Accountancy Questions on Issue of Debentures asked in CBSE CLASS XII

Varsha Ltd. invited applications for issuing 2,000, 12% debentures of ₹ 100 each at a premium of ₹ 30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 debentures were rejected and money refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.

Paratigm Ltd. issued 40,000, 11% debentures of \(₹100\) each at a discount of 5%, redeemable at a premium. On issue of these debentures ‘Loss on Issue of Debentures Account’ was debited with \(₹4,00,000\). The amount of premium on redemption of debentures was :

KM Ltd. acquired assets worth ₹ 7,20,000 and took over liabilities of ₹ 2,00,000 of LS Ltd. for a purchase consideration of ₹ 9,60,000. KM Ltd. issued 12% debentures of ₹ 100 each at a discount of 4% in favour of LS Ltd. for payment of purchase consideration. Pass necessary journal entries for the above transactions in the books of KM Ltd.

Debentures on which a company does not give any undertaking for the repayment of money borrowed are called:

Radhya Ltd. issued 5,000, 9% debentures of ₹ 100 each at ₹ 97 per debenture. The 9% debentures account will be credited by :

On 1st April, 2023, GI Ltd. issued 40,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at par after five years. The company closes its books on 31st March every year. Interest on debentures is payable half-yearly on 30th September and 31st March every year. Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.

On 1stApril, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31stMarch, 2024 will be :

The debentures that can be transferred by way of delivery and the company does not keep any record of the debenture holders are called :

Mayank Ltd. invited applications for issuing 70,000 equity shares of 100 each. The amount was payable as follows:
On Application – 20 per share
On Allotment – 40 per share
On First Call – 20 per share
On Second and Final Call – Balance
Applications for 1,00,000 shares were received and allotment was made to all the applicants on pro-rata basis. Jay, a shareholder who had applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited immediately after the allotment. Meenakshi, the shareholder of 1,400 shares, failed to pay the first call money and her shares were forfeited just after the first call. The second and final call has not been made.
Pass necessary journal entries in the books of the company for the above transactions.

Pass necessary journal entries for the issue of debentures in the books of NK Ltd. for the following transactions:
(i) Issued 500, 9% Debentures of 100 each at 10% discount, redeemable at a premium of 10% after 5 years.
(ii) Issued 400, 9% Debentures of 100 each at 5% discount, redeemable at par after 5 years.

On 1st April, 2024, Varsha Ltd. purchased from Rama Ltd., furniture at 12,00,000 and machinery at 20,00,000. It also took over its liabilities amounting to 3,00,000. The purchase consideration of 35,00,000 was paid by issuing a bank draft of 2,00,000 and the balance by issue of 11% Debentures of 100 each, at a premium of 10%.
Pass necessary journal entries for the above transactions in the books of Varsha Ltd.

On 1st April, 2023, Mudra Ltd. issued 9,000, 12% Debentures of 100 each at 10% premium, redeemable at a premium of 10% after 4 years. The interest due on debentures for the year ended 31^st March, 2024 was:

On 1st October, 2024, Nirmal Ltd. issued 6,000, 11% Debentures of 100 each at a premium of 10%, redeemable at a premium of 10%. ‘Loss on Issue of Debentures’ will be:

Roshni Ltd. purchased machinery worth 1,98,000 from Prakash Ltd. The purchase consideration was paid by issue of 8% debentures of 100 each at 10% discount. (i) Calculate the number of debentures issued.
(ii) Pass necessary journal entries for purchase of machinery and issue of debentures.

Raja Ltd. issued 8,000, 10% Debentures of 100 each at 98 per debenture. 10% Debentures Account will be credited by:

Y Ltd. issued 1,000 debentures of Rs 100 each at par, redeemable at a premium of 10 percent. Pass journal entries for issue and redemption.

Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows:
On Application – ₹ 200 per debenture
On Allotment – Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Swar Sangam Limited.

Apoorv Ltd. acquired building worth ₹ 15,50,000, Machinery worth ₹ 11,40,000 and Furniture worth ₹ 1,10,000 from Dhruv Ltd. and took over its liabilities of ₹ 2,00,000 for a purchase consideration of ₹ 25,00,000. Apoorv Ltd. paid the purchase consideration by issuing 12% debentures of ₹ 100 each at a premium of 25%.
Pass the necessary journal entries in the books of Apoorv Ltd. for the above transactions.