T S Grewal Solutions 2026-27 [Class 12] – Issue of Debentures– Q 51 to 62

Solution for Q 51 to 62 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 writing off discount or loss on issue of 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 51

Journal of Mercury Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Apr-26	Bank A/c Dr..	940000
	To Debenture Application and Allotment A/c		940000	10000	94
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	940000
	Discount on issue of Debentures A/c	60000		10000	6
	To 9% Debentures A/c		1000000	10000	100
	(Being debentures issued at discount)

	Statement of Profit and loss A/c Dr..	60000
	To Discount on issue of Debentures A/c		60000
	(Discount on issue of Debentures written off)

▶ Video Solution: Coming Soon

Question 52

Journal of Gladiators Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	950000
	To Debenture Application and Allotment A/c		950000	10000	95
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	950000
	Discount on issue of Debentures A/c Dr..	50000			5
	Loss on issue of Debentures A/c Dr..	50000
	To 8% Debentures A/c		1000000	10000	100
	To Premium on redemption of debentures A/c		50000		5
	(Being debentures issued at discount and redeemable at
	premium)

	Securities Premium Reserve A/c Dr..	70000
	Statement of Profit and loss A/c Dr..	30000
	To Discount on issue of Debentures A/c		50000
	To Loss on issue of Debentures A/c		50000
	(Discount on issue of Debentures and premium on redemption
	written off)

▶ Video Solution: Coming Soon

Question 53

Journal of Sujata Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	4500000
	To Debenture Application and Allotment A/c		4500000	50000	90
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	4500000
	Discount on issue of Debentures A/c Dr..	500000			10
	To 9% Debentures A/c		5000000	50000	100
	(Being debentures issued at discount and redeemable at par)

	Securities Premium Reserve A/c Dr..	300000
	Statement of Profit and loss A/c Dr..	200000
	To Discount on issue of Debentures A/c		500000
	(Discount on issue of Debentures written off)

▶ Video Solution: Coming Soon

Question 54

Journal of Kushal Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	600000
	To Debenture Application and Allotment A/c		600000	6000	100
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	600000
	Loss on issue of Debentures A/c Dr..	30000
	To 8% Debentures A/c		600000	6000	100
	To Premium on redemption of debentures A/c		30000		5
	(Being debentures issued at par and redeemable at premium)

	Securities Premium Reserve A/c Dr..	20000
	Statement of Profit and Loss A/c Dr..	10000
	To Loss on issue of Debentures A/c		30000
	(Premium on redemption of debentures written off)

▶ Video Solution: Coming Soon

Question 55

Journal of Global Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	1000000
	To Debenture Application and Allotment A/c		1000000	10000	100
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	1000000
	Loss on issue of Debentures A/c Dr..	90000
	To 8% Debentures A/c		1000000	10000	100
	To Premium on redemption of debentures A/c		90000		9
	(Being debentures issued at par and redeemable at premium)

	Statement of Profit and Loss A/c Dr..	90000
	To Loss on issue of Debentures A/c		90000
	(Premium on redemption of debentures written off)

▶ Video Solution: Coming Soon

Question 56

Journal of Garvit Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	338400
	To Debenture Application and Allotment A/c		338400	3600	94
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	338400
	Discount on issue of Debentures A/c Dr..	18000		3000	6
	To 11% Debentures A/c		300000	3000	100
	To Bank A/c		56400	600	94
	(Being debentures issued at discount)

	Statement of Profit and Loss A/c Dr..	18000
	To Discount on issue of Debentures A/c		18000
	(Discount on issue of debentures written off)

▶ Video Solution: Coming Soon

Question 57

An extract of Balance Sheet of R Energy Ltd

As at 31-Mar-2026

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
a. Long Term Borrowings	1	1000000
b. Other Long term Liabilities	2	100000

Total		1100000
II. Assets
Current Assets
Cash and Cash Equivalents	3	900000

	Notes to Accounts
	1. Long Term Borrowings
	10000 7% Debentures of Rs 100 each						1000000

	2. Other Long Term Liabilities
	Premium on Redemption of Debentures						100000

	3. Cash and Cash Equivalents
	Cash at Bank						900000

	Working Note :
	Balance sheet will not match in the absence of complete information. Question is asking only for extract.
	Loss on issue of debentures will be writtten off at the end of the year and will not come in Balance sheet
	Similarly discount on issue of debentures will also be written off
	Impact of Accrued interest is not considered in the absence of information on period of interest payments

	Note : Journal entries given here only for understanding. These are not required in question
1	Bank A/c Dr..	900000
	To Debentuere Application and Allotment A/c		900000	10000	90

2	Debenture Application And Allotment A/c Dr..	900000
	Discount on iissue of Debentures A/c	100000		10000	10
	Loss on issue of Debentures A/c	100000		10000	10
	To 7% Debentuees A/c		1000000	10000	100
	To Premium on Redemption of debentures		100000	10000	10

3	Statement of Profit and Loss A/c Dr..	200000
	To Discount on iissue of Debentures A/c		100000
	To Loss on issue of Debentures A/c		100000

▶ Video Solution: Coming Soon

Question 58

An extract of Balance Sheet of Solar Power Ltd

As at 31-Mar-2026

Particulars	Note No	Amount
I. Equity and Liabilities
Shareholders' Funds
Reserves and Surplus	1	0

Non-Current Liabilities
a. Long Term Borrowings	2	1000000
b. Other Long term Liabilities	3	150000

3. Cash and Cash Equivalents
Cash at Bank	4	950000

Notes to Accounts
1. Reserves and Surplus
Securities Premium Reserve	80000
Less - Loss on issue of Debentures written Off	80000	0

2. Long Term Borrowings
10000 8% Debentures of Rs 100 each		1000000

3. Other Long Term Liabilities
Premium on Redemption of Debentures		150000

4. Cash and Cash Equivalents
Cash at Bank		950000

Working Note :

a) Balance Sheet will not match in the absence of information

b) Balance in Securities premium reserve will not come in balance sheet as it gets utilized in

writing off discount on issue of debentures

c) Loss on issue of debentures will be writtten off at the end of the year and will not come in Balance sheet

Similarly discount on issue of debentures will also be written off

d) Impact of Accrued interest is not considered in the absence of information on period of interest payments

Note : Journal entries given here only for understanding. These are not required in question

Bank A/c Dr..	950000		10000	95
To Debenture Application and Allotment A/c		950000

Debenture Application And Allotment A/c Dr..	950000
Disocunt on iissue of Debentures A/c	50000		10000	5
Loss on issue of Debentures A/c	150000		10000	15
To 7% Debentuees A/c		1000000	10000	100
To Premium on Redemption		150000	10000	15

Securities Premium Reserve A/c Dr..	80000
Statement of Profit and Loss A/c Dr..	120000
To Discount on iissue of Debentures A/c		50000
To Loss on issue of Debentures A/c		150000

▶ Video Solution: Coming Soon

Question 59

(ii)	Journal of Dhatu Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	450000
	To Debenture Application and Allotment A/c		450000	500	900
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	450000
	Discount on issue of Debentures A/c Dr..	50000			100
	Loss on issue of Debentures A/c Dr..	50000		500	100
	To 10% Debentures A/c		500000	500	1000
	To Securities Premium Reserve A/c		50000
	(Being debentures issued at discount and redeemable at
	premium)

	Securities Premium Reserve A/c Dr..	75000
	Statement of Profit and Loss A/c Dr..	25000
	To Discount on issue of Debentures A/c		50000
	To Loss on issue of Debentures A/c		50000
	(Discount and loss on issue of Debentures written off)

▶ Video Solution: Coming Soon

Question 60

(ii)	Journal of Srijan Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	630000
	To Debenture Application and Allotment A/c		630000	700	900
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	630000
	Discount on issue of Debentures A/c Dr..	70000			100
	Loss on issue of Debentures A/c Dr..	70000		700	100
	To 8% Debentures A/c		700000	700	1000
	To Premium on redemption of debentures A/c		70000
	(Being debentures issued at discount and redeemable at
	premium)

	Securities Premium Reserve A/c Dr..	100000
	Statement of Profit and Loss A/c Dr..	40000
	To Discount on issue of Debentures A/c		70000
	To Loss on issue of Debentures A/c		70000
	(Discount and loss on issue of Debentures written off)

▶ Video Solution: Coming Soon

Question 61

Note : In this question two types of debentures are issued separately. 9% Debenture and 8% Debentures

Assets	1000000
Less - Liabilities	250000

Net Assets	750000

Face Value per debenture	100
Add - Premium	20
Issue price per debenture	120

No of Debentures issued	6250	(750000/120)

Journal of Sony Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Assets A/c Dr..	1000000
	To Liabilities A/c		250000
	To Amrit Ltd		750000
	(Being business purchased and Debentures issued)

	Amrit Ltd A/c Dr..	750000
	To 9% Debentures A/c		625000	6250	100
	To Securities Premium Reserve A/c		125000	6250	20
	(Being debentures issued at premium)

After 5 yrs	Bank A/c Dr..	1000000
	To Debenture Application and Allotment A/c		1000000	10000	100
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	1000000
	Loss on issue of Debentures A/c Dr..	200000		10000	20
	To 8% Debentures A/c		1000000	10000	100
	To Premium on redemption of Debentures A/c		200000	10000	20
	(Being debentures issued at par and redeemable at premium)

	Securities Premium Reserve A/c Dr..	125000
	Statement of Profit and Loss A/c Dr..	75000
	To Loss on issue of Debentures A/c		200000
	(Being loss on issue of debentures written off)

▶ Video Solution: Coming Soon

Question 62

Please note that the solution below will not match with the answer given in the book.
The solution given here is correct, as per the language of the question in 2026 edition.
The book changed the question langauge in 2026 edition compared to 2025 edition.
But the book did not changed the answer accordingly.
So the book answer in 2026 edition is inconsistent with the question language of 2026 edition

Debentures Already Issued earlier
No of Debentures	10000
Face Value per debentures	200

Issue price of Debentures	2000000

Debentures issue on 01-Jul-2024
Funds requirement	16500000

Face Value per 7% debenture	200
Add - Premium @ 10%	20

Issue price per debenture	220

No of Debentures issued	75000	(16500000/220)

Journal of Fit India Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
01-Jul-25	Bank A/c Dr..	18150000
	To Debenture Application and Allotment A/c		18150000	82500	220
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	18150000
	Loss on issue of Debentures A/c Dr..	4125000		82500	50
	To 7% Debentures A/c		16500000	82500	200
	To Premium on redemption of Debentures A/c		4125000	82500	50
	To Securities Premium Reserve A/c		1650000	82500	20
	(Being debentures issued at premium and redeemable at
	premium)

	Securities Premium Reserve A/c Dr..	2500000
	Statement of Profit and Loss A/c Dr..	1625000
	To Loss on issue of Debentures A/c		4125000
	(Being loss on issue of debentures written off)

Loss on Issue of Debentures A/c

Particulars	Amount	Particulars	Amount
To Premium on redemption of Deb	4125000	By Securities Premium Reserve A/c	2500000
		By Statement of Profit and Loss	1625000
	4125000		4125000

Calculation of Interest :
Old Debentures (Full Year Interest)
Old Debentures	10000
Face Value per debenture	200
Nominal Value of 7% Debentures	2000000	(10000*200)
Interest @ 7% pa	140000	(2000000*7/100)
Interest payable on 30-Sep-2025	70000	140000*6/12
Interest payable on 31-Mar-2026	70000	140000*6/12

New Debentures
New Debentures	82500
Face Value per debenture	200
Nominal Value of 7% Debentures	16500000	(75000*200)
Interest @ 7% pa	1155000

Interest payable on 30-Sep-2025	288750	(165000007/1003/12)
Interest payable on 31-Mar-2026	577500	(165000007/1006/12)

Total Interest Payable on 30-Sep-2025	358750	(70000+288500)
Total Interest Payable on 31-Mar-2026	647500	(70000+577500)

Journal of Fit India Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
30-Sep-25	Interest on Debentures A/c Dr..	358750
	To Debentureholders A/c		358750
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	358750
	To Bank A/c		358750
	(Half yearly interest on debentures paid)

31-Mar-26	Interest on Debentures A/c Dr..	647500
	To Debentureholders A/c		647500
	(Half yearly interest on Debentures due)

	Debentureholders A/c Dr..	647500
	To Bank A/c		647500
	(Half yearly interest on debentures paid)

	Statement of Profit and Loss A/c Dr..	1006250
	To Interest on Debentures A/c		1006250

▶ 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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