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

Solution of Question number 12 of the Issue of Debentures Chapter of TS Grewal Book 2026-27 CBSE Board

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 application money was refunded. Debentures were
allotted to the remaining applicants.

Pass necessary Journal entries for the above transactions in the books of Varsha Ltd. (CBSE 2025)

[Ans.: (i) Dr. Bank A/c and Cr. Debentures Application and Allotment A/c by 6,50,000; (ii) Dr. Debentures Application and Allotment A/c by 6,50,000; Cr. 12% Debentures A/c by₹ 2,00,000, Securities Premium A/c by ₹ 60,000 and Bank A/c ₹ 3,90,000.]

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