[DK Goel] Q. 27, 28 Issue of Debentures Solutions Class 12 CBSE (2026-27)
Here are the solution of question number 27 and 28 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2026-27).
Q. 27. On 1-4-2021, X Ltd. issued 40,000, 7% debentures of ₹ 100 each at a discount of 6% redeemable at a premium of 2% after four years. The amount was payable as follows:
On application ₹ 40 per debenture.
Balance on allotment.
Company has a balance of 1,20,000 in Securities Premium and ₹ 1,50,000 in Capital Reserve. Profit for the year ending 31st March, 2022 was ₹ 2,00,000.
Pass the journal entries for issue of debentures and writing off the loss on issue of debentures.
[Ans. Loss on issue ₹ 3,20,000; Loss on issue written off from Securities Premium ₹ 1,20,000 and Statement of Profit & Loss ₹ 2,00,000.]
Note: Capital Reserve can not be used for writing off Loss on Issue.
Solution:-
Q. 28. Y Ltd. issued on 1st April, 2021, 20,000, 9% Debentures of ₹ 100 each at 4% discount redeemable after four years at a premium of ₹ 5. All the debentures were subscribed. During the year ended 31st March, 2022, the company incurred a loss of ₹ 70,000. It has balance of ₹ 1,50,000 in Capital Reserve.
Pass the Journal entries for issue of debentures and writing off Loss on Issue of Debentures.
[Ans. Loss on Issue ₹ 1,80,000; Entire amount of Loss on Issue will be written off from Statement of Profit & Loss.]
Solution:-
