[DK Goel] Q. 21, 22 Issue of Debentures Solutions Class 12 CBSE (2026-27)

Here are the solution of question number 21 and 22 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).

Q. 21. Usha Ltd. issued 30,000, 10% Debentures of ₹ 100 each as collateral security for a loan of ₹ 24,00,000 from Axis Bank. The company was unable to repay the loan on which interest payable was ₹ 6,00,000 as on 31st March, 2022.

Axis Bank, on 31st March, 2022, exercised the right vested in it by way of debentures being issued as collateral Security.

Pass Journal entries in the books of Usha Ltd. on 31st March, 2022.

Solution:-

Q. 22. What Journal entries will be made in the following cases:

(i) A company issued ₹ 40,000, 12% Debentures at par, redeemable also at par.

(ii) A company issued ₹ 40,000, 12% Debentures at a discount of 10% redeemable at par:

(iii) A company issued ₹ 40,000, 12% Debentures at a premium of 5% redeemable at par:

(iv) A company issued ₹ 40,000, 12% Debentures at par, redeemable at 10% premium; and

(v) A company issued ₹ 40,000, 12% Debentures at a discount of 5% and redeemable at 5% premium.

Note: The face value of a 12% Debentures is ₹ 100.

Solution:-