[DK Goel] Q. 17, 18 Issue of Debentures Solutions Class 12 CBSE (2026-27)

Here are the solution of question number 17 and 18 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).

Q. 17. S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% interest. The company issued ₹ 7,50,000, 10% debentures of ₹ 100 each, in favour of State Bank of India as collateral security. Pass necessary journal entries for the above transactions:

(i) When company decided not to record the issue of 10% Debentures as collateral security.

(ii) When company decided to record the issue of 10% Debentures as collateral security.

Solution:-

Q. 18. Hassan Limited took a loan of ₹ 30,00,000 from a bank against primary security worth ₹ 40,00,000 and issued 35,000, 6% debentures of ₹ 100 each as a collateral security. The company again after one year took a loan of ₹ 50,00,000 from bank against Plant as primary security and deposited 60,000, 6% debentures of ₹ 100 each as collateral security. Record necessary journal entries. How will you show the issue of debentures and bank loan in the balance sheet of the company.

Solution:-