Students must start practicing the questions from RBSE 12th Accountancy Model Papers Set 4 with Answers in English Medium provided here.
RBSE Class 12 Accountancy Model Paper Set 4 with Answers in English
Time: 2:45 Hours
Maximum Marks: 80
General Instructions for the Examinees :
- Candidate must first write his/her Roll No. on the question paper compulsorily.
- All the questions are compulsory.
- Write the answer to each question in the given answer book only.
- For questions having more than one part the answers to those parts must be written together in continuity.
- If there is any error/difference/contradiction in Hindi & English versions of the question paper, the question of the Hindi version should be treated valid.
Section-A
Question 1.
Multiple Choice Questions [1 x 12 = 12]
(i) The following information has been extracted from the financial statements of a not-for-profit organization for the year ended 31st March 2019.
| Particulars | Amount (₹) |
| Opening balance of Match Fund | 5,00,000 |
| Sale of Match tickets | 3,75,000 |
| Donations for Match Fund received during the year | 1,24,000 |
| Match expenses | 10,00,000 |
Which of the following statements is correct for the presentation of the above items in the financial statements of the not-for-profit organization?[1]
(a) Negative balance of match fund ₹ 1,000 will be shown on the liabilities side of the Balance Sheet as at 31st March 2019.
(b) Opening balance of match fund ₹ 500,000 will be shown on the liabilities side of balance sheet as at 1-4-2018.
(c) Negative balance of match fund, ₹ 1,000 will be shown on the expenditure side of the income and expenditure account for the year ended 31-3-2019.
(d) Both (b) and (c).
Answer:
(d) Both (b) and (c).
(ii) A and B are partners sharing profit in the ratio of 4: 1 C is a manager who gets salary ₹ 2,000 monthly and 5% commission on net profit (after deduction of the commission) before deduction of salary is ₹ 3,39,000. C’s remuneration will be: [1]
(a) 39,000
(b) 44,000
(c) 43,500
(d) 38,000
Answer:
(a) 39,000
(iii) Sun and Star were partners in a firm sharing profits in the ratio of 2: 1. Moon was admitted as a new partner in the firm. New profit sharing ratio was 3:3:2. Moon brought the following assets towards his share of goodwill and his capital:
| ₹ | |
| Machinery | 2,00,000 |
| Furniture | 1,20,000 |
| Stock | 80,000 |
| Cash | 50,000 |
If his capital is considered as ₹ 3,80,000, the goodwill of the firm will be: [1]
(a) ₹ 70,000
(b) ₹ 2,80,000
(c) ₹4,50,000
(d) ₹ 1,40,000
Answer:
(b) ₹ 2,80,000.
(iv) The directors of Axim Ltd. forfeited 20,000 equity shares of ₹ 10 each, ₹ 8 per share called up for non-payment of first call of ₹ 2 per share. Final call of ₹ 2 per share has not been yet called. Half of the forfeited shares were reissued as fully paid up for ₹ 15 per share. The amount transferred to Capital Reserve will be: [1]
(a) ₹ 2,00,000
(b) ₹ 1,20,000
(c) ₹ 60,000
(d) ₹ 40,000
Answer:
(c) ₹ 60,000
(v) Discount or loss on issue of debentures to be written off after 12 months from the date of balance sheet or after the period of operating cycle is shown under: [1]
(a) other non-current assets
(b) other non-current liabilities
(c) other current assets
(d) other current liabilities
Answer:
(a) other non-current assets
(vi) The debentures which can be converted into equity shares are called: [1]
(a) redeemable debentures
(b) registered debentures
(c) bearer debentures
(d) convertible debentures
Answer:
(d) convertible debentures
(vii) In the case of issue of debentures as collateral security, if entry is passed which account will be debited: [1]
(a) loan account
(b) debenture account
(c) debenture suspense account
(d) bank account
Answer:
(c) debenture suspense account
(viii) When debentures are issued at par and will be redeemed on premium, this type of loss will be shown in: [1]
(a) Debenture Application
(b) Debenture Allotment A/c
(c) Loss on issue of debentures
(d) Debenture A/c
Answer:
(c) Loss on issue of debentures
(ix) Under which of the following head/sub-head is forfeited shares presented in the Balance Sheet of a company?[1]
(a) Reserves and Surplus
(b) Share Capital
(c) Other Long-term Liabilities
(d) Other Current Liabilities
Answer:
(a) Reserves and Surplus
(x) Cost of goods sold =: [1]
(a) Purchase + Direct expenses
(b) Opening stock of material + Purchase of material + Direct expenses – Closing stock of material
(c) Opening stock of material + Purchases of material – Closing stock of material
(d) None of the above
Answer:
(b) Opening stock of material + Purchase of material + Direct expenses – Closing stock of material
(xi) The comparative balance sheet presents ……………………………… changes between each item of the balance sheet. [1]
(a) relative
(b) absolute
(c) absolute and relative
(d) none of these
Answer:
(c) absolute and relative
(xii) Another name of working capital ratio is : [1]
(a) Liquid ratio
(b) Current ratio
(c) Absolute liquid ratio
(d) Working capital turnover ratio
Answer:
(b) Current ratio
Question 2.
Fill in the blanks [1 × 6 = 6]
(i) The interest on capital is calculated on …………………………….. capital. [1]
Answer:
Opening
(ii) Interest on calls in arrears is transferred to ………………………………….. account. [1]
Answer:
profit and loss
(iii) When debentures are issued to vendor …………………………………… account is credited. [1]
Answer:
Debentures
(iv) Interest on debentures is a ……………………………….. against profit. [1]
Answer:
charge
(v) The prescribed format of preparing balance sheet by a company is given under Schedule …………………………….. of the Companies Act, 2013. [1]
Answer:
III.
(vi) Working capital = Current Assets – ………………………………… .[1]
Answer:
Current Liabilities
Question 3.
Very Short Answer Type Questions [1 x 12 = 12]
(i) Distinguish between Income and Expenditure Account and Receipt and Payment Account on the basis of nature of items’. [1]
Answer:
Income and expenditure account records items of revenue nature, while receipts and payments account records items of both capital and revenue nature.
(ii) Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for \(\frac{1^{\text {th }}}{6} \) share in the profits. Chaman acquired \(\frac{2}{5}^{\text {th }}\) of his share from Amit. How much share did Chaman acquire from Beena? [1]
Answer:
Share of profit acquired by Chaman from Aman = \(\frac{1}{6} \times \frac{2}{5}=\frac{2}{30}\)
Therefore, share of profit acquired by Chaman from Beena
= \(\frac{1}{6}-\frac{2}{30}=\frac{3}{30}=\frac{1}{10} \)
(iii) What is meant by safe or secured debenture? [1]
Answer:
The debentures which are secured either on particular assets of the company called fixed charge or on all assets of the company. if the company is unable to repay the debentures on the due date, the debenture holders can realise their money from the assets mortgaged with them.
(iv) What is meant by non-convertible debentures? [1]
Answer:
Those debentures which cannot be changed into shares or into new debentures.
(v) What is the difference between shares and debentures?[1]
Answer:
Share is a part of capital of company while debenture is acceptance of loan.
(vi) What is the nature of interest on debentures? [1]
Answer:
Its nature is revenue expenditure.
(vii) What is meant by loss on issue of debentures? [1]
Answer:
When debentures are issued on discount and are redeemed on premium, it is called loss on issue of debentures.
(viii) Give journal entry on issue of debenture on discount and redeemable at premium. [1]
Answer:
Bank A/c. Dr.
Discount on Issue of Debentures A/c Dr.
Loss on Issue of Debentures A/c Dr.
To Debentures A/c
To Premium on Redemption of Debentures A/c
(Being debentures issued at discount and repayable on premium).
(ix) Write the names of the major heads of the assets of the balance sheet of a company. [1]
Answer:
(i) Non-Current Assets
(ii) Current Assets.
(x) What is meant by comparative balance sheet? [1]
Answer:
Comparative balance sheet is a technique of financial analysis in which financial figures for two or more years are placed side-by-side to facilitate comparison, these are called comparative financial balance sheet.
(xi) What is meant by comparative income statement? [1]
Answer:
A comparative statement of profit and loss (income statement) is the horizontal analysis of income statement which shows the operating results for more than one accounting period.
(xii) The quick ratio of a company is 0.5: 0.75. Will cash sales of ₹ 5,000 increase, decrease or not change the ratio?[1]
Answer:
Increase.
Reasons: Quick assets (cash) with no charge in current liabilities.
Section-B
Short Answer Type Questions (2 x 13 = 26)
Question 4.
Subscriptions received during the year ended December 31, 2015 by Royal Club were as under:
The club has 500 members each paying @ ₹ 200 as annual subscription. Subscriptions outstanding as on December 31, 2014 are ₹ 6,000. Calculate the amount of subscriptions to be shown as income in the income and expenditure account for the year ended December 31, 2015 and show the relevant data in the balance sheet as on date. [2]
Answer:
Question 5.
Rakesh and Roshan are partners, sharing profits in the ratio of 3: 2 with capital of ₹ 40,000 and ₹ 30,000, respectively. They withdrew from the firm the following amounts, for their personal use:
| Rakesh | Month |
(₹) |
| May 31, 2016 | 600 | |
| June 30, 2016 | 500 | |
| August 31, 2016 | 1,000 | |
| November 1, 2016 | 400 | |
| December 31, 2016 | 1,500 | |
| January 31, 2017 | 300 | |
| March 01, 2017 | 700 | |
| Rohan | At the beginning of each month | 400 |
Interest on drawings is to be charged @ 6% p.a. Calculate interest on drawings, assuming that book of accounts are closed on March 31, 2017, every year. [2]
Answer:
Interest on Rakesh’s Drawings = ₹ 25,300 × \(\frac{6}{100} \times \frac{1}{12}\) = ₹ 126.50
Interest on Rohan’s Drawings:
Total Drawings =(400 x 12) = ₹ 4,800
= ₹ 4,800 × \(\frac{6}{100} \times \frac{6.5}{12}\) = ₹ 156
Note : Drawings have been made at the beginning of the month. So, months are taken as 6.5.
Question 6.
Ashoo and Rahul are partners sharing profits in the ratio of 3: 2. Gaurav was admitted for 1/5 share and was asked to contribute proportionate capital and ₹ 4,000 for premium (goodwill). The capitals of Ashoo and Rahul, after all adjustments relating to revaluation, goodwill etc. worked out to be ₹ 45,000 and ₹ 35,000 respectively. Required: Calculate New Profit sharing ratio, capital to be brought in by Gaurav, and record necessary journal entries for the same. [2]
Answer:
ashoo s old profit share = \(\frac{3}{5}\)
Rahul s old profit share = \(\frac{2}{5}\)
Gaurav s share = \(\frac{1}{5}\)
Let the total profit be 1
Remaining profit after Gaurav’s share = 1- \(\frac{1}{5}\)
= \(\frac{5-1}{5}=\frac{4}{5}\)
Ashods new share = \(\frac{4}{5} \times \frac{3}{5}=\frac{12}{25}\)
Rahuls new share = \(\frac{4}{5} \times \frac{2}{5}=\frac{8}{25}\)
New profit sharing ratio of partners = \(\frac{12}{25}: \frac{8}{25}: \frac{1}{5}\)
= 12:8:5
Capital of the firm = (45,000 + 35000) x \(\frac{5}{4}\)
= 80,000 x \(\frac{5}{4}\) = ₹ 1,00,000
Gaurav’s capital = 1,00,000 × \(\frac{1}{5}\) = ₹ 20,000
Question 7.
What is Goodwill? [2]
Ans.
Meaning of Goodwill: Goodwill is not a tangible asset like other physical assets of the business. Goodwill is the present value of a firm’s anticipated excess earnings. It is attributable to the reputation which is acquired by an undertaking business operations successfully.
Question 8.
The Adarsh Control Device Ltd. was registered with the authorized capital of ₹ 3,00,000 divided into 30,000 shares of ₹ 10 each, which were offered to the public. Amount payable as ₹ 3 per share on application, ₹ 4 per share on allotment, and ₹ 3 per share on first and final call. These shares were fully subscribed and all money was duly received. Prepare journal and Cash Book. [2]
Answer:
Question 9.
Software Solution India Ltd. invited applications for 20,000 equity shares of ₹ 100 each, payable ₹ 40 on application, ₹ 30 on allotment and ₹ 30 on first and final call. The company received applications for 32,000 shares. Applications for 2,000 shares were rejected and money returned to applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 shares allotted half of the number of shares applied and excess application money adjusted into allotment. All money due on allotment and call was received. Prepare journal and cash book. [2]
Answer:
Working Notes : Money refunded = ₹ [(2,000 x 40) + (4,00,000 – 3,00,000)]
= ₹ (80,000+1,00,000)
= ₹ 1,80,000
Question 10.
Rupak Ltd. issued 10,000 ovaries of ₹ 100 each payable ₹ 20 per share on application, ₹ 30 per share on allotment, and balance in two calls of ₹ 25 per share. The application and allotment money were duly received. On first call, all members paid their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book. [2]
Answer:
(ii) Calls received in Advance = ₹ (500 x 25) = ₹ 12,500.
Question 11.
Record necessary journal entries in the books of the Company in each of the following cases for redemption of 1,000, 12% Debentures of ₹ 10 each issued at par :
(a) Debentures redeemed at par by conversion into 12% Preference Shares of ₹ 100 each.
(b) Debentures redeemed at a premium of 10% by conversion into Equity Shares issued at par.
(c) Debentures redeemed at a premium of 10% by conversion into Equity Shares issued at a premium of 25%.[2]
Answer:
Question 12.
On 31 March 2017 Janta Ltd. Converted its ₹ 88,00,000, 6% debentures into equity shares of ₹ 20 each at a premium of ₹ 2 per share. Record necessary journal entries in the books of the company for redemption of debentures. [2]
Answer:
Question 13.
From the following information of Religare Ltd. (a financial company), calculate Revenue from Operations, Other Income and Total Revenue: Profit on Sale of Investments ₹ 5,00,000; Profit on Sale of Building ₹ 4,50,000; Miscellaneous Income ₹ 50,000; Dividend Received ₹ 4,00,000; Interest on Loans (Received) ₹ 25,00,000. [2]
Answer:
Question 14.
Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd.,
and Anjali Ltd: [2]
Answer:
Question 15.
Compute Inventory Turnover Ratio from the following information:
Revenue from Operations ₹ 2,00,000
Gross Profit ₹ 50,000
Inventory at the end ₹ 60,000
Excess of inventory at the end over inventory in the beginning: ₹ 20,000. [2]
Answer:
Inventory Turnover Ratio = \(\frac{\text { Cost of Goods Sold }}{\text { Average Inventory }} \)
Cost of Goods Sold = Revenue from Operations – Gross Profit
= ₹(2,00,000-50,0O0)
= ₹ 1,50,000
Opening Inventory = Closing Inventory – Inventory in the Beginning
= ₹ (60,000- 20,000)
= ₹ 40,000
Average Inventory = \(\frac{\text { Opening Inventory }+\text { Closing Inventory }}{2} \)
=₹ \(\frac{(40,000+60,000)}{2}\)
= ₹ \(\frac{1,00,000}{2}\)
=₹ 50,000
inventory Turnover Ratio = \(\frac{1,50,000}{50,000}\) = 3:1
Question 16.
Calculate Inventory Turnover Ratio if: Inventory in the beginning is-₹ 76,250, Inventory at the end is ₹ 98,500, Sales is ₹ 5,20,000, Sales Return is ₹ 20,000, Purchases is ₹ 3,22,250. [2]
Answer:
Inventory Turnover Ratio = \(\frac{\text { Cost of Goods Sold }}{\text { Average Inventory }} \)
Cost of Goods Sold = Opening Inventory + Purchases — Closing Inventory
= ₹ (76,250+3,22,250-98,500)
= ₹ (3,98,500-98,500)
= ₹ 3,00,000
Average Inventory = \(\frac{\text { Opening Inventory + Closing Inventory }}{2} \)
= \(\frac{76,250+98,500}{2}\)
= ₹ 87,375
Inventory Turnover Ratio = \(\frac{3,00,000}{87,375}\)
=3.43: 1 or 3.43 times
Section-C
Question 17.
How will you deal with the following items while preparing for the Bombay Women Cricket Club its Income and Expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017 :
| Details | ₹ | |
| (a) | Donations received during the year for the construction of a permanent pavilion | 12,25,000 |
| Expenditure incurred up to 31.3.2017 on its construction | 10,80,000 | |
| The total estimated expenditure on construction of pavilion being | 25,00,000 | |
| (b) | Tournament Fund: Balance as on 1.4.2016 | 10,700 |
| Subscriptions for tournaments received during the year | 65,800 | |
| Expenditure incurred during the year on conducting tournaments | 72,400 | |
| (c) | Life membership fee received during the year | 28,000 |
Give reasons for your answers. [3]
Answer:
Reasons :
(i) Donation for construction of pavilion is a donation for specific purpose.
(ii) Expenses on construction on pavilion is a capital expenditure.
Question 18.
On March 31, 2017 the balance in the capital accounts of Eluin, Monu and Ahmed, after making adjustments for profits, drawings, etc; were ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin ₹ 20,000; Monu ₹ 15,000 and Ahmed ₹ 9,000. Interest on drawings chargeable to partners were Eluin ₹ 500, Monu ₹ 360 and Ahmed ₹ 200. The net profit during the year amounted to ₹ 1,20,000. The profit-sharing ratio was 3:2:1. Record necessary adjustment entry. [3]
Answer:
Question 19.
Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3: 2 ratio, They admitted Ram Lal for 1/4 share on 1.1.2013. It was agreed that goodwill of t he firm will be valued at 3 years’ purchase of the average profits of last 4 years which were ₹ 50,000 for 2013, ₹ 60,000 for 2014,₹ 90,000 for 2015, and ₹ 70,000 for 2016.
Ram Lai did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lai’s admission when :
(a) Goodwill already appears in the books at ₹ 2,02,500.
(b) Goodwill appears in the books at ₹ 2,500.
(c) Goodwill appears in the books at ₹ 2,05,000. [3]
Answer:
Average profit = \(\frac{50,000+60,000+90,000+70,000}{4}=\frac{2,70,000}{4}\) = ₹ 67,500
Goodwill = Average profit x Number of Year’s Purchase
= 67,500 x 3= ₹ 2,02,500
Ram Lal’s share of goodwill = 2,02,500 x \(\frac{1}{4}\) = ₹ 50,625
Mohan La1’s share in goodwill brought in by Ram Lal
= 50,625 × \(\frac{3}{5}\) = ₹ 30,375
Sohan Lal’s share in goodwill brought in by Ram Lai
= 50,625 × \(\frac{2}{5}\) = ₹ 20,250
Question 20.
Calculate the following ratios on the basis of the following information :
(i) Gross Profit Ratio,
(ii) Current Ratio,
(iii) Acid Test Ratio,
(iv) Inventory Turnover Ratio,
(v) Fixed Assets Turnover Ratio [3]
| ₹ | |
| Gross Profit | 50,000 |
| Revenue from Operations | 1,00,000 |
| Inventory | 15,000 |
| Trade Receivables | 27,500 |
| Cash and Cash Equivalents | 17,500 |
| Current Liabilities | 40,000 |
| Land & Building | 50,000 |
| Paint & Machinery | 30,000 |
| Furniture | 20,000 |
Answer:
(i) Gross Profit Ratio = \(\frac{\text { Gross Profit }}{\text { Renevue from Operations }} \times 100 \)
= \(\frac{50,000}{1,00,000} \times 100\)
= 50%
(ii) Current Ratio = \(\frac{\text { Current Assets }}{\text { Current Liabilities }} \)
Current Assets = Inventory + Trade Receivables + Cash and Cash Equivalents
= ₹ (15,000 + 27,500 + 17,500)
= ₹ 60,000
Current Liabilities = 40,000
Current Ratio = \(\frac{60,000}{40,000}\)
= 15:1
(iii) Liquid Ratio = \(\frac{\text { Liquid Assets }}{\text { Current Liabilities }}\)
Liquid Assets = Current Assets – Inventories
= ₹ (60,000 – 15,000)
= ₹ 45,000
Current Liabilities = 40,000
Liquid Ratio = \(\frac{45,000}{40,000}\)
=1125:1
(iv) Inventory Turnover Ratio = \(\frac{\text { Cost of Goods Sold }}{\text { Average Inventory }} \)
Cost of Goods Sold = Revenue from Operations — Gross Profit
= ₹(1,00,000- 50,000)
= ₹ 50,000
Average Inventory = 15,000
Inventory Turnover Ratio =\(\frac{50,000}{15,000}\)
= 3.33: 1 or 3.33 times
(v) Fixed Assets Turnover Ratio = \(\frac{\text { Revenue from Operations }}{\text { Fixed Assets }} \)
Fixed Assets Land and Building + Plant and Machinery + Furniture
= ₹ (50,000 + 30,000 + 20,000) = 1,00,000
Revenue from Operations = 1,00,000
Fixed Assets Turnover Ratio = \(\frac{1,00,000}{1,00,000}\) = 1: 1.
Section-D
Question 21.
Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March 2017 their balance sheet was as follows :
Balance Sheet of Chander and Damini As on 31.03.2017
On 01.04.2017, they admitted Elina as a new partner for 1/3rd share in the profits on the following conditions :
(i) Elina will bring ₹ 3,00,000 as her capital and ₹ 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of ₹ 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts Will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of ₹ 8,000 will be created for the same.
Prepare Revaluation Account and Partners’ Capital Accounts. [4]
Or
A, B, C, and D were partners in a firm sharing profits in the ratio of 3: 2 : 3: 2. On 1.4.2016, their balance sheet was as follows :
From the above date, the partners decided to share the future profits in the ratio of 4 :3: 2 :1. For this purpose, the goodwill of the firm was valued at ₹ 2,70,000.
It was also considered that:
(i) The claim against Workmen Compensation Reserve has been estimated at ₹ 30,000 and fixed assets will be depreciated by ₹ 25,000.
(ii) Adjust the capitals of the partners according to the new profit sharing ratio by opening current accounts of the partners. Prepare Revaluation Account, Partners’ Capital Account, and the Balance sheet of the reconstituted firm. [4]
Answer:
Question 22.
Himalaya Company Limited issued for public subscription of 1,20,000 equity shares at premium of ₹ 2 per share payable as under :
With Application ₹ 3 per share
On allotment (including premium) ₹ 5 per share
On First call ₹ 2 per share
On Second and Final call ₹ 2 per share
Applications were received for 1,60,000 shares. The allotment was made on a pro-rata basis. Excess money on application was adjusted against the amount due on allotment. Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share. Record journal entries and show the transactions relating to share capital in the company’s balance sheet. [4]
Answer:
Question 23.
Jay Kay Ltd. an ‘other listed company’ issued 60,000 12% debentures of ₹ 100 each at par redeemable at the end of 5 years at a premium of 20%. On this date, there existed a balance of ₹ 5,00,000 in securities premium reserve account. The company created the required amount of debenture redemption reserve in 3 equal installments on March 31.
2017, 2018, and 2019. It invested in specified securities (DRI) the required amount on April, 01 of the financial year. Debentures were duly redeemed. Record necessary
journal entries for :
(i) Issue of debentures.
(ii) Writing off loss on issue of debentures.
(iii) Interest on debentures for 2015-16 assuring if is paid annually & tax deducted at source is 10%.
(iv) Regarding redemption of debentures. [4]
Or
Zed Ltd. issued 2,00,000, 8% debentures of ₹ 100 each at a discount of 6% redeemable at a premium of 10% after 5 years.
The amount was payable as follows :
On application – ₹ 50 per debenture, and
On allotment – balance.
Record the necessary journal entries, for the issue of debentures in the books of Zed Ltd. [4]
Answer:
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