T S Grewal Solutions 2026-27 [Class 12] – Issue of Debentures– Q 11 to 20

Solution for Q 11 to 20 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 at premium for cash, issue of debentures at discount for cash, issue of debentures for consideration other than cash

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 11

Journal of Kamya Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb

	Bank A/c Dr..	1080000
	To Debenture Application A/c		1080000	27000	40
	( Being Debenture application money received for 27000
	debentures @ Rs 40 per Debenture)

	Debenture Application A/c Dr..	1080000		27000
	To 8% Debenture A/c		1080000		40

	(Being application money transferred to 8% Debentures A/c)

	Debenture Allotment A/c Dr..	1080000		27000
	To 8% Debenture A/c		810000		30
	To Securities Premium Reserve A/c		270000		10
	( Being Debenture allotment money for 27000 debentures
	transferred to Debentures A/c @ Rs 30 per Debenture and
	Securities Premium Reserve A/c @ Rs 10 per Debenture)

	Bank A/c Dr..	1080000		27000
	To Debenture Allotment A/c		1080000		40
	( Being debenture allotment money received for 27000
	debentures @ Rs 40 per debenture )

▶ Video Solution: Coming Soon

Question 12

Journal of Varsha Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb

	Bank A/c Dr..	650000
	To Debenture Application and Allotment A/c		650000	5000	130
	( Being Debenture application money received for 5000
	debentures @ Rs 130 per Debenture)

	Debenture Application and AllotmentA/c Dr..	650000
	To 12% Debenture A/c		200000	2000	100
	To SPR A/c		60000	2000	30
	To Bank A/c		390000	3000	130
	(Being application money transferred to 12% Debentures A/c
	and excess money refunded)

▶ Video Solution: Coming Soon

Question 13

Journal of Kati Ltd

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 Debenture application money received for 9000
	debentures @ Rs 90 per Debenture)

	Debenture Application and AllotmentA/c Dr..	810000		8000
	Discount on issue of Debentures A/c Dr..	80000		8000	10
	To 9% Debenture A/c		800000	8000	100
	To Bank A/c		90000	1000	90
	(Being application money transferred to 9% Debentures A/c
	and excess money refunded)

Note : On application Rs 90 per debenture will be paid as full amount is payable on application

and so discount of Rs 10 per debenture will also be given at the time of payment of application money

▶ Video Solution: Coming Soon

Question 14

Journal of Linux Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb

	Bank A/c Dr..	300000
	To Debenture Application A/c		300000	12000	25
	( Being Debenture application money received for 12000
	debentures @ Rs 25 per Debenture)

	Debenture Application A/c Dr..	300000		12000
	To 8% Debenture A/c		300000		25
	(Being application money transferred to 8% Debentures A/c)

	Debenture Allotment A/c Dr..	240000		12000	20
	Discount on Issue of Debentures A/c	60000		12000	5
	To 8% Debenture A/c		300000		25

	( Being Debenture allotment money for 12000 debentures
	transferred to Debentures A/c @ Rs 25 per Debenture)

	Bank A/c Dr..	240000		12000
	To Debenture Allotment A/c		240000		20
	( Being debenture allotment money received for 12000
	debentures @ Rs 20 per debenture )

	Debenture First and Final Call A/c Dr..	600000		12000	50
	To 8% Debenture A/c		600000		50

	( Being Debenture first and final call money for 12000
	debentures transferred to Debentures A/c @ Rs 50 per
	Debenture)

	Bank A/c Dr..	600000		12000
	To Debenture First and final Call A/c		600000		50
	( Being debenture First and final call money received for
	12000 debentures @ Rs 50 per debenture )

Note : In the absence if information it will be assumed that discount is given on allotment

▶ Video Solution: Coming Soon

Question 15

Description	FV	Discount	Payable
Application	550	50	500
Allotment	450	50	400

Total	1000	100	900

Journal of Alka Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb

	Bank A/c Dr..	2500000
	To Debenture Application A/c		2500000	5000	500
	( Being Debenture application money received for 5000
	debentures @ Rs 500 per Debenture)

	Debenture Application A/c Dr..	2500000		5000	500
	Discount on issue of Debentures A/c Dr..	250000		5000	50
	To 10% Debenture A/c		2750000	5000	550
	(Being application money transferred to 8% Debentures A/c
	and excess money refunded)

	Debenture Allotment A/c Dr..	2000000		5000	400
	Discount on issue of Debentures A/c Dr..	250000		5000	50
	To 10% Debenture A/c		2250000	5000	450
	( Being Debenture allotment money for 5000 debentures
	transferred to Debentures A/c @ Rs 450 per Debenture and
	redeemable at a premium of 5%)

	Bank A/c Dr..	2000000		5000
	To Debenture Allotment A/c		2000000		400
	( Being debenture allotment money received for 5000
	debentures @ Rs 400 per debenture )

▶ Video Solution: Coming Soon

Question 16

Journal of The Decor Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb

	Bank A/c Dr..	600000
	To Debenture Application A/c		600000	20000	30
	( Being Debenture application money received for 20000
	debentures @ Rs 30 per Debenture)

	Debenture Application A/c Dr..	600000		20000	30
	To 6% Debenture A/c		600000		30
	(Being application money transferred to 6% Debentures A/c
	and excess money refunded)

	Debenture Allotment A/c Dr..	800000		20000	40
	Discount on issue of Debentures A/c Dr..	200000			10
	To 6% Debenture A/c		1000000		50
	( Being Debenture allotment money for 20000 debentures
	transferred to Debentures A/c @ Rs 50 per Debenture and
	redeemable at a premium of 5%)

	Bank A/c Dr..	800000		20000
	To Debenture Allotment A/c		800000		40
	( Being debenture allotment money received for 20000
	debentures @ Rs 40 per debenture )

▶ Video Solution: Coming Soon

Question 17

Journal of Ninza Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	360000		4000	90
	To Debenture Application and Allotment A/c		360000
	(Being 4000 Debentures issued at a discount of 10%)

	Debenture Application and Allotment A/c Dr..	360000
	Discount on Issue of Debentures A/c Dr..	40000		4000	10
	To 8% Debentures A/c		400000	4000	100
	(Being 8% Debentures issued )

	Securities Premium Reserve A/c Dr..	40000
	To Discount on Issue of Debentures A/c		40000
	(being Discount on issue of Debentures written off)

▶ Video Solution: Coming Soon

Question 18

Journal of Vedanta Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Building A/c Dr..	900000
	To Vendor A/c		900000
	(Being Buildig purchased from vendor)

	Vendor A/c Dr..	900000		10000	90
	Discount on issue of Debentures A/c Dr..	100000		10000	10
	To 10% Debentures A/c		1000000	10000	100
	(Being 10% Debentures issued to Vendor for consideration
	other than cash)

Working Note :

Calculation of No of Debentures Issued

Total consideration to be paid	900000

Nominal/Face Value of Debenture	100
Discount per Debenture	10	10%
Issue Price per Debenture	90

No of Debentures Issued	10000	(900000/90)

(Always divide the purchase consideration with the issue

price and not by the face value to find the no of

debentures)

So if debentures issued at discount

No of debentures = PC payable through debentures/(Face Value per debenture - Discount per debenture)

If debentures issued at premium

No of debentures = PC payable through debentures/(Face Value per debenture + Premium per debenture)

If debentures issued at par

No of debentures = PC payable through debentures/Face Value per debenture

▶ Video Solution: Coming Soon

Question 19

Journal of Amrit Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Incorporation Expenses A/c Dr..	200000
	To Amrit A/c		100000	1000	100
	To Bhaskar A/c		100000	1000	100
	(Incorporation Expenses Payable)

	Amrit A/c Dr..	100000
	Bhaskar A/c Dr..	100000
	To 6% Debentures A/c		200000
	(Being 6% Debentures issued to promoters)

▶ Video Solution: Coming Soon

Question 20

Journal of Kinetic Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Plant A/c Dr..	600000
	To Vendor A/c		600000
	(Being Plant purchased from vendor)

	Vendor A/c Dr..	600000
	To 9% Debentures A/c		500000	5000	100
	To Securities Premium Reserve A/c		100000	5000	20
	(Being 9% Debentures issued to Vendor for consideration
	other than cash)

Working Note :
Calculation of No of Debentures Issued

Total consideration to be paid	600000

Nominal Value of Debenture	100
Premium Per Debenture	20
Issue Price per Debenture	120	(100+20)

No of Debentures Issued	5000	(600000/120)

▶ 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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