[CBSE] Q. 13 Issue of Debentures Solution TS Grewal Class 12 (2026-27)

Solution of Question number 13 of the Issue of Debentures Chapter of TS Grewal Book 2026-27 CBSE Board

Kati Ltd. issued 8,000, 9% Debentures of ₹ 100 each at a discount of 10%. The full amount was payable on application. Application were received for 9,000 debentures and allotment was made on pro rata basis.

Pass the necessary Journal entries for the above transactions in the books of Kati Ltd.

[Ans.: Discount on Issue of Debentures – ₹ 80,000; Excess amount refunded – ₹ 90,000.]

Solution:-