[DK Goel] Q. 41, 42 Issue of Debentures Solutions Class 12 CBSE (2026-27)

Here are the solution of question number 41 and 42 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).

Q. 41. A company issues the following debentures:

(a) 10,000, 12% debentures of ₹ 100 each at par but redeemable at a premium of 5% after 5 years.

(b) 10,000, 12% debentures of ₹ 100 each at a discount of 5%, but redeemable at a premium of 5% after 5 years.

(d) 1,000, 14% debentures of ₹ 100 each issued to a supplier of machinery costing ₹ 95,000, the debentures are repayable after 5 years; and

(e) 300, 13% debentures of ₹ 100 each as a collateral security to a bank who has advanced a loan of ₹ 25,000 to the company for a period of 5 years.

Pass the Journal entries to record the issue of debentures.

Solution:-

Q. 42. Show by means of journal entries how would you record the following issues.

(I) A Ltd. issues ₹ 5,00,000, 13% Debentures at a discount of 8% redeemable at par.

(ii) B Ltd. issues ₹ 6,00,000, 12% Debentures at a discount of 6% redeemable at a premium of 7%.

(iii) C Ltd. purchased plant and machinery for ₹ 8,00,000 payable as to ₹ 2,30,000 in cash and the balance by an issue of 10% Debentures of ₹ 100 each at a discount of 5%.

(iv) D Ltd. issued 500, 11% Debentures of ₹ 100 each as a collateral security to a Bank who has advanced a loan of ₹ 45,000 to the Company for a period of 7 years.

(v) E Ltd. issued ₹ 2,20,000 Debentures to a creditor for ₹ 2,00,000 Capital Expenditure in satisfaction of his claim.

[Ans. In Case (iii) Number of Debentures issued 6,000; In Case (v) Discount on Debentures ₹ 20,000.]

Solution:-