T S Grewal Solutions 2026-27 [Class 12] – Issue of Debentures– Q 31 to 40

Solution for Q 31 to 40 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 for consideration other than cash, issue of debentures as collateral security

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 31

Assets	660000
Less - Liabilities	80000
Net Assets (A)	580000

Purchase Consideration (B)	600000

Goodwill (B - A)	20000

Working Note :
Case 1 : Calculation of No of Debentures Issued (At Par)

Total consideration to be paid	600000
Less - paid in cash	60000
Balance payable through Debentures	540000
Nominal Value of Debenture	100

No of Debentures Issued	5400

Case 2 : Calculation of No of Debentures Issued (At Premium)

Total consideration to be paid	600000
Less - paid in cash	60000
Balance payable through Debentures	540000
Nominal Value of Debenture	100
Premium Per Debenture	20
Issue Price per Debenture	120

No of Debentures to be Issued	4500

Journal of Star Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Sundry Assets A/c Dr..	660000
	Goodwill A/c Dr..	20000
	To Sundry Liabilities A/c		80000
	To Moon Ltd A/c		600000
	(Being Assets purchased and liabilities taken over purchased
	from Moon Ltd)

	At Par
	Moon Ltd A/c Dr..	600000
	To 12% Debentures A/c		540000	5400	100
	To Cash A/c		60000
	(Being Debentures issued to Moon Ltd for consideration other
	than cash)

	At Premium
	Moon Ltd A/c Dr..	600000
	To 12% Debentures A/c		450000	4500	100
	To Securities Premium Reserve A/c		90000		20
	To Cash A/c		60000
	(Being Debentures issued to Moon Ltd for consideration other
	than cash)

▶ Video Solution: Coming Soon

Question 32

Assets	660000
Less - Liabilities	80000
Net Assets (A)	580000	(kitne ki cheej mili hai)

Purchase Consideration (B)	600000	(kitne paise ya shares, debentures dene hain)

Goodwill (B - A)	20000	(if NA < PC)

Working Note :
Calculation of No of Debentures Issued (At Par)

Total consideration to be paid	600000
Less - paid in cash	60000
Balance payable through Debentures	540000
Nominal Value of Debenture	100

No of Debentures Issued	5400

Calculation of No of Debentures Issued (At Premium)

Total consideration to be paid	600000
Less - paid in cash	60000
Balance payable through Debentures	540000
Nominal Value of Debenture	100
Premium Per Debenture	20
Issue Price per Debenture	120

No of Debentures to be Issued	4500

Calculation of No of Debentures Issued (At Discount)

Total consideration to be paid	600000
Less - paid in cash	60000
Balance payable through Debentures	540000
Nominal Value of Debenture	100
Discount Per Debenture	10
Issue Price per Debenture	90

No of Debentures to be Issued	6000

Journal of Bright Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Sundry Assets A/c Dr..	660000
	Goodwill A/c Dr..	20000
	To Sundry Liabilities A/c		80000
	To Star Ltd A/c (Vendor)		600000
	(Being Assets purchased and liabilities taken over purchased
	from Moon Ltd)

	At Par
	Star Ltd A/c Dr..	600000
	To 12% Debentures A/c		540000	5400	100
	To Cash A/c		60000
	(Being Debentures issued to Moon Ltd for consideration other
	than cash)

	At Premium
	Star Ltd A/c Dr..	600000
	To 12% Debentures A/c		450000	4500	100
	To Securities Premium Reserve A/c		90000	4500	20
	To Cash A/c		60000
	(Being Debentures issued to Moon Ltd for consideration other
	than cash)

	At Discount
	Star Ltd A/c Dr..	600000
	Discount on issue of Debentures A/c Dr..	60000		6000	10
	To Debentures A/c		600000	6000	100
	To Cash A/c		60000
	(Being Debentures issued to Star Ltd for consideration other
	than cash)

▶ Video Solution: Coming Soon

Question 33

Note : Entry for taking the loan will be passed in both the cases
	Journal of …......

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	400000
	To Loan from Bandhan Bank A/c		400000
	(Being Loan taken from Bandhan bank)

Method 1	When no journal entry is passed

	An extract of Balance Sheet of …..........
	As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	400000

	Notes to Accounts
	1. Long Term Borrowings
	Loan from Bandhan Bank Ltd						400000
	(Secured by issue of 8% Debentures as Collateral Security)

Method 2	When journal entry is passed

	Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Debentures Suspense A/c Dr..	400000
	To 8% Debentures A/c		400000
	(Being issue of 8% Debentures as Collateral Security for a
	loan taken from Bandhan Bank)

An extract of Balance Sheet of …..........

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	400000

Notes to Accounts
1. Long Term Borrowings
Loan from Bandhan Bank Ltd		400000
8% Debentures issued as Collateral Security	400000
Less : Debentures Suspense A/c	400000	0
		400000

▶ Video Solution: Coming Soon

Question 34

Note : Entry for taking the loan will be passed in both the cases

Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Bank A/c Dr..	500000
	To Loan from Bank A/c		500000
	(Being Loan taken from bank)

Note : Method 1 where no journal entry is passed is not asked in the question

It is given here only for reference.

For solution to the question see the Method 2 solution below

Method 1 : When no journal entry is passed

An extract of Balance Sheet of Best Barcode Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	500000

	Notes to Accounts
	1. Long Term Borrowings
	Loan from Bank						500000
	(Secured by issue of Rs 600000 9% Debentures as Collateral
	Security)

Method 2 : When journal entry is passed

Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Debentures Suspense A/c Dr..	600000
	To 8% Debentures A/c		600000
	(Being issue of 9% Debentures as Collateral Security for a
	loan taken from Bank)

An extract of Balance Sheet of Best Barcode Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	500000

Notes to Accounts
1. Long Term Borrowings
Loan from Bank		500000
9% Debentures issued as Collateral Security	600000
Less : Debentures Suspense A/c	600000	0
		500000

▶ Video Solution: Coming Soon

Question 35

Note : Entry for taking the loan will be passed in both the cases

Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Bank A/c Dr..	300000
	To Loan from IDBI Bank A/c		300000
	(Being Loan taken from IDBI Bank)

Method 1 : When no journal entry is passed

An extract of Balance Sheet of Bhagwati Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	300000

	Notes to Accounts
	1. Long Term Borrowings
	Loan from IDBI Bank						300000
	(Secured by issue of 4000 9% Debentures of Rs 100 each as
	Collateral Security)

Method 2 : When journal entry is passed

Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Debentures Suspense A/c Dr..	400000
	To 8% Debentures A/c		400000
	(Being issue of 4000 9% Debentures of Rs 100 each as
	Collateral Security for a loan taken from IDBI Bank)

An extract of Balance Sheet of Bhagwati Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	300000

Notes to Accounts
1. Long Term Borrowings
Loan from Bank		300000
4000 9% Debentures of Rs 100 each issued as Collateral Security	400000
Less : Debentures Suspense A/c	400000	0
		300000

▶ Video Solution: Coming Soon

Question 36

Note : Entry for taking the loan will be passed in both the cases

Journal of …......

Date	Particulars	Dr Amt	Cr Amt
	Bank A/c Dr..	500000
	To Loan from IDBI Bank A/c		500000
	(Being Loan taken from State Bank of India)

Method 1 : When no journal entry is passed

An extract of Balance Sheet of S. Singh Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	500000

	Notes to Accounts
	1. Long Term Borrowings
	Loan from State Bank of India						500000
	(Secured by issue of 7500 10% Debentures of Rs 100 each as
	Collateral Security)

Method 2 : When journal entry is passed

Journal of S. Singh Ltd

Date	Particulars	Dr Amt	Cr Amt
	Debentures Suspense A/c Dr..	750000
	To 10% Debentures A/c		750000
	(Being issue of 7500 10% Debentures of Rs 100 each as
	Collateral Security for a loan taken from State Bank of
	India)

An extract of Balance Sheet of S Singh Ltd

As at…........

Particulars	Note No	Amount
I. Equity and Liabilities
Non-Current Liabilities
Long Term Borrowings	1	300000

Notes to Accounts
1. Long Term Borrowings
Loan from State Bank of India		500000
4000 9% Debentures of Rs 100 each issued as Collateral Security	750000
Less : Debentures Suspense A/c	750000	0
		500000

▶ Video Solution: Coming Soon

Question 37

Journal of Bingo Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	2200000		20000	110
	To Debenture Application and Allotment A/c		2200000
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	2200000
	Loss on issue of Debentures A/c Dr..	100000		20000	5
	To 9% Debentures A/c		2000000	20000	100
	To Securities Premium Reserve A/c		200000	20000	10
	To Premium on redemption of debentures A/c		100000	20000	5
	(Being debentures issued at a premium and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 38

Journal of ZK Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	Bank A/c Dr..	380000
	To Debenture Application and Allotment A/c		380000	4000	95
	(Being amount received on issue of Debentures)

	Debenture Application and Allotment A/c Dr..	380000
	Discount on issue of Debentures A/c Dr..	20000		4000	5
	Loss on issue of Debentures A/c Dr..	40000		4000	10
	To 9% Debentures A/c		400000	4000	100
	To Premium on Redemption of Debentures		40000	4000	10
	(Being debentures issued at a discount and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 39

Journal of Sakshi Ltd

Date	Particulars	Dr Amt	Cr Amt	Deb.(Nos)	Per Deb
	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 Dr..	6000		1000	6
	Loss on issue of Debentures A/c Dr..	5000		1000	5
	To 11% Debentures A/c		100000	1000	100
	To Premium on Redemption of Debentures		5000	1000	5
	(Being debentures issued at a discount and redeemable at
	premium)

▶ Video Solution: Coming Soon

Question 40

Journal of Care Cosmetics Ltd

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

	Bank A/c Dr..	200000
	To Debenture Application A/c		200000	50000	4
	( Being Debenture application money received for 50000
	debentures @ Rs 4 per Debenture)

	Debenture Application A/c Dr..	200000		50000
	To 9% Debenture A/c		200000		4
	(Being application money transferred to 9% Debentures A/c)

	Debenture Allotment A/c Dr..	300000		50000
	Loss on Issue of Debentures A/c	50000		50000	1
	To 9% Debenture A/c		300000	50000	6
	To Premium on redemption of Debentures A/c		50000	50000	1

	( Being Debenture allotment money for 50000 debentures
	transferred to Debentures A/c @ Rs 6 per Debenture)

	Bank A/c Dr..	0
	To Debenture Allotment A/c		0		6
	( Being debenture allotment money received for 50000
	debentures @ Rs 6 per debenture )

▶ 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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