T S Grewal Solutions 2026-27 [Class 12] – Issue of Debentures– Q 41 to 50

Solution for Q 41 to 50 of Chapter 2 of Book 2 - Accounting for Companies of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Issue of Debentures class 12. These Solutions are based on topics issue of debentures with trms of redemption, interest on debentures

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 41 (i)

Journal of Arpita Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	220000.0
	To Debenture Application and Allotment A/c		220000.0	2000	110.0
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	220000.0
	Loss on Issue of Debentures A/c Dr..	10000		2000	5
	To 10% Debentures A/c		200000	2000	100
	To Securities Premium Reserve A/c		20000	2000	10
	To Premium on redemption of Debentures A/c		10000	2000	5
	(Being debentures issued at premium and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 41(ii)

Journal of Arpita Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	450000
	To Debenture Application and Allotment A/c		450000	5000	90
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	450000
	Discount on Issue of Debentures A/c Dr..	50000		5000	10
	Loss on Issue of Debentures A/c Dr..	25000		5000	5
	To 10% Debentures A/c		500000	5000	100
	To Premium on redemption of Debentures A/c		25000	5000	5
	(Being debentures issued at discount and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 42 (i)

Journal of ….............

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	810000
	To Debenture Application and Allotment A/c		810000	9000	90
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	810000
	Discount on issue of Debentures A/c Dr..	90000		9000	10
	Loss on Issue of Debentures A/c Dr..	45000		9000	5
	To 10% Debentures A/c		900000	9000	100
	To Premium on redemption of Debentures A/c		45000	9000	5
	(Being debentures issued at premium and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 42(ii)

Journal of ….............

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	550000
	To Debenture Application and Allotment A/c		550000	5000	110
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	550000
	Loss on Issue of Debentures A/c Dr..	25000		5000	5
	To 10% Debentures A/c		500000	5000	100
	To Securities Premium Reserve A/c		50000	5000	10
	To Premium on redemption of Debentures A/c		25000	5000	5
	(Being debentures issued at discount and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 43(i)

Journal of ….

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	2700000
	To Debenture Application and Allotment A/c		2700000	30000	90
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	2700000
	Discount on issue of Debentures A/c Dr..	300000		30000	10
	Loss on Issue of Debentures A/c Dr..	150000		30000	5
	To 11% Debentures A/c		3000000	30000	100
	To Premium on redemption of Debentures A/c		150000	30000	5
	(Being debentures issued at discount and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 43(ii)

Journal of ….

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	3840000
	To Debenture Application and Allotment A/c		3840000	32000	120
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	3840000
	Loss on Issue of Debentures A/c Dr..	320000		32000	10
	To 8% Debentures A/c		3200000	32000	100
	To Securities Premium Reserve A/c		640000	32000	20
	To Premium on redemption of Debentures A/c		320000	32000	10
	(Being debentures issued at premium and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 43(iii)

Journal of ….

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	4000000
	To Debenture Application and Allotment A/c		4000000	40000	100
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	4000000
	Loss on Issue of Debentures A/c Dr..	400000
	To 13% Debentures A/c		4000000	40000	100
	To Premium on redemption of Debentures A/c		400000	40000	10
	(Being debentures issued at par and redeemable at premium)

▶ Video Solution: Coming Soon

Question 44

Journal of Agam Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	(Entries for issue of debentures and interest on 30-Sep not
	required in question. Given here only for information. Only
	entries on 31-Mar-2026 are asked in the question)

01-Apr-25	Bank A/c Dr..	3600000
	To Debenture Application and Allotment A/c		3600000	40000	90
	(Being amount received on issue of Debentures)

01-Apr-25	Debenture Application and Allotment A/c Dr..	3600000
	Discount on issue of Debentures A/c	400000		40000	10
	Loss on Issue of Debentures A/c Dr..	800000		40000	10
	To 9% Debentures A/c		4000000	40000	100
	To Premium on redemption of Debentures A/c		400000	40000	10
	(Being debentures issued at discount and redeemable at
	premium)

30-Sep-25	Interest on Debentures A/c Dr..	180000
	To Debentureholders A/c		180000
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	180000
	To Bank A/c		180000
	(Half yearly interest on debentures paid)

31-Mar-26	Interest on Debentures A/c Dr..	180000
	To Debentureholders A/c		180000
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	180000
	To Bank A/c		180000
	(Half yearly interest on debentures paid)

31-Mar-26	Statement of Profit and Loss A/c Dr..	360000
	To Interest on Debentures A/c		360000
	(Being interest on Debentures transferred to Profit and Loss
	A/c)

Working Note :
Interest on Debentures for 6 months ended 31-Mar-2023
Principal	4000000	40000	100
Rate of Interest	9%
Period (Months)	6

Interest	180000	(40000009/1006/12)

▶ Video Solution: Coming Soon

Question 45

Journal of Pratham Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
30-Jun-25	Interest on Debentures A/c Dr..	112500
	To Debentureholders A/c		112500
	(Quarterly interest on Debentures due)

	Debentureholders A/c Dr..	112500
	To Bank A/c		112500
	(Quarterly interest on debentures paid)

Note : Calculation of Quarterly Interest

50000*100*9/100*3/12

▶ Video Solution: Coming Soon

Question 46

Note : Debenture issue entries not asked in the question. Given here only for information

	Journal of Hindustan Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Apr-25	Bank A/c Dr..	500000
	To Debenture Application and Allotment A/c		500000	5000	100
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	500000
	To 10% Debentures A/c		500000	5000	100
	(Being debentures issued at par and redeemable at par

30-Sep-25	Interest on Debentures A/c Dr..	25000
	To Debentureholders A/c		25000
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	25000
	To Bank A/c		25000
	(Half yearly interest on debentures paid)

31-Mar-26	Interest on Debentures A/c Dr..	25000
	To Debentureholders A/c		25000
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	25000
	To Bank A/c		25000
	(Half yearly interest on debentures paid)

	Statement of Profit and Loss A/c Dr..	50000
	To Interest on Debentures A/c		50000

Working Note :
Interest on Debentures for 6 months
Principal	500000
Rate of Interest	10%
Period (Months)	6

Interest	25000

▶ Video Solution: Coming Soon

Question 47

Journal of V.V.L. Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Apr-25	Bank A/c Dr..	94000
	To Debenture Application and Allotment A/c		94000	1000	94
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	94000
	Discount on issue of Debentures A/c	6000		1000	6
	Loss on Issue of Debentures A/c Dr..	10000		1000	10
	To 9% Debentures A/c		100000	1000	100
	To Premium on redemption of Debentures A/c		10000		10
	(Being debentures issued at par and redeemable at premium)

30-Sep-25	Interest on Debentures A/c Dr..	4500
	To Debentureholders A/c		4500
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	4500
	To Bank A/c		4500
	(Half yearly interest on debentures paid)

31-Mar-26	Interest on Debentures A/c Dr..	4500
	To Debentureholders A/c		4500
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	4500
	To Bank A/c		4500
	(Half yearly interest on debentures paid)

	Statement of Profit and Loss A/c Dr..	9000
	To Interest on Debentures A/c		9000

Working Note :
Interest on Debentures for 6 months
Principal	100000
Rate of Interest	9%
Period (Months)	6

Interest	4500

▶ Video Solution: Coming Soon

Question 48

Journal of Pawan Hans Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Jul-25	Bank A/c Dr..	400000		10000	40
	To Debenture Application A/c		400000
	(Being amount received on application on issue of
	Debentures)

	Debenture Application A/c Dr..	400000
	To 7% Debenture A/c		400000
	(Being application money transferred to 7% Debentures A/c)

	Debenture Allotment A/c Dr..	700000		10000	70
	To 7% Debentures A/c		600000	10000	60
	To Securities Premium Reserve A/c		100000	10000	10
	(Being Allotment amount due for debentures issued at
	Premium)

	Bank A/c Dr..	700000
	To Debenture Allotment A/c		700000
	(Being amount received on allotment)

31-Mar-26	Interest on Debentures A/c Dr..	52500
	To Debentureholders A/c		52500
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	52500
	To Bank A/c		52500
	(Half yearly interest on debentures paid)

	Statement of Profit and Loss A/c Dr..	52500
	To Interest on Debentures A/c		52500

Working Note :
Interest on Debentures for 9 months
Principal	1000000
Rate of Interest	7.00%
Period (Months)	9

Interest	52500

▶ Video Solution: Coming Soon

Question 49

Journal of Finolex Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Jul-25	Bank A/c Dr..	800000		20000	40
	To Debenture Application A/c		800000
	(Being amount received on application on issue of
	Debentures)

	Debenture Application A/c Dr..	800000
	To 7% Debenture A/c		800000
	(Being application money transferred to 7% Debentures A/c)

	Debenture Allotment A/c Dr..	800000		20000	40
	To 7% Debentures A/c		600000	20000	30
	To Securities Premium Reserve A/c		200000	20000	10
	(Being Allotment amount due for debentures issued at
	Premium)

	Bank A/c Dr..	800000
	To Debenture Allotment		800000
	(Being amount received on allotment)

31-Mar-26	Interest on Debentures A/c Dr..	73500.0
	To Debentureholders A/c		73500.0
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	73500.0
	To Bank A/c		73500.0
	(Half yearly interest on debentures paid)

	Statement of Profit and Loss A/c Dr..	73500.0
	To Interest on Debentures A/c		73500.0

Working Note :
Interest on Debentures for 9 months
No of Debentures	20000
Amount Paid Up per debenture	70
Principal	1400000	(Only on amount called/Paid Up)
Rate of Interest	7.00%
Period (Months)	9

Interest	73500.0

▶ Video Solution: Coming Soon

Question 50

Journal of Raja Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	190000
	To Debenture Application and Allotment A/c		190000
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	190000
	Discount on issue of Debentures A/c	10000
	To 10% Debentures A/c		200000
	(Being debentures issued at discount)

	Securities Premium Reserve A/c Dr..	10000
	To Discount on issue of Debentures A/c		10000
	(Discount on issue of Debentures written off)

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-62

T S Grewal Solutions – Issue of Debentues – All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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