[ISC] Q. 41, 42 Issue of Debentures solution TS Grewal Class 12 (2026-27)
Solution of Question number 41 and 42 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2026-27 session
Q. 41. Birch Ltd. issued 20,000, 9% Debentures of ₹ 100 each at a premium of 10% payable as follows:
On Application ₹ 20 (1st January), on Allotment ₹ 40 (including premium) (1st April), on First Call ₹ 30 (1st June), on Second and Final Call ₹ 20 (1st August).
Applications were received for 18,000 debentures and the allotment was made. One debentureholder to whom 400 debenture were allotted paid the entire balance on his debentureholding with allotment money and another debentureholder did not pay allotment and First call money on his 600 debentures but which he paid with final call.
Calculate the amount of Interest paid and received on Calls-in-Advance (@ 12% p.a.) and Calls-in-Arrears (@ 10% p.a.) on 1st August. Also, give Journal entries to record the above transactions assuming that Calls-in-Arrears Account is maintained.
Solution:-
Q. 42. Petromax Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 20 per debenture payable as ₹ 30 on application, ₹ 50 including premium on allotment and the balance in equal instalments over two calls. Applications were received for 9,200 debentures and the allotment was does as under:
A. Applicants of 4,000 debentrures – Allotted 3,000 debentures.
B. Applicants of 4,000 debentures – Allotted 2,000 debentures.
C. Applicants of 1,200 debentures – NIL.
Mohan, who had applied for 200 debentures (Category A) did not pay any money other than Application money. Sohan, who was allotted 80 debentures (Category B) paid the call money due along with allotment. All other allottees paid their dues as per schedule.
Pass the necessary Journal entries in the books of the company to record the above assuming that Calls-in-Arrears Account is maintained. Ignore interest on Calls-in-Arrears as well as Calls-in-Advance.
Solution:-
