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CUET Accountancy 2026 PYQs31 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2026 31 May Shift 1

Debentures

past year questions, Company Accounts, CUET Accountancy 2026 31 May Shift 1

Medium

common

Arrange the following in order in case of issue of debenture at discount.

A. Allotment due

B. Receipt of application money

C. Transfer of discount to Statement of Profit & Loss

D. Allotment of debentures

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1,3

Receipt of application money comes first and writing off the discount comes last; the ambiguity is only in whether "allotment of debentures" occurs before or after "allotment due."

B. Receipt of application money → First step.

A and D → Ambiguous. If "allotment of debentures" means the formal allotment decision, the order is B → D → A → C. If it refers to completing the accounting for allotment after the amount becomes due, the order is B → A → D → C.

C. Transfer of discount to Statement of Profit & Loss → Done after the issue process.

Therefore, both Option 1 (B, D, A, C) and Option 3 (B, A, D, C) can be accepted because the wording of A and D is not precise enough.

Related questions:

2022: 20 Aug Shift 2

The money received from applicants to whom no debentures have been allotted will be ________

2026: 21 May Shift 2

When debentures are redeemable at a premium, the premium payable on redemption is

2025: 3 June Shift 2

Discount on issue of 8% debentures is shown in the balance sheet as

2026: 20 May Shift 1

A Limited issued 5000, 10% debentures of Rs. 100 each, at a premium of Rs. 10 per debenture payable as follows:

On application Rs. 25, On allotment Rs. 45 (including premium), On first and final call Rs. 40.

The debentures were fully subscribed and all money was duly received.

Select the correct journal entries related to the above case from the following.

(A)

DateParticularsL.F.Dr. AmountCr. Amount
10% Debenture Allotment A/c Dr.2,25,000
To 10% Debentures A/c1,75,000
To Securities Premium Reserve A/c50,000

(B)

DateParticularsL.F.Dr. AmountCr. Amount
Bank A/c Dr.1,25,000
To 10% Debenture Application A/c1,25,000

(C)

DateParticularsL.F.Dr. AmountCr. Amount
Bank A/c Dr.2,00,000
To 10% Debenture First & Final Call A/c2,00,000

(D)

DateParticularsL.F.Dr. AmountCr. Amount
Bank A/c Dr.2,20,000
To 10% Debenture Allotment A/c2,20,000

Choose the correct answer from the options given below:

2026: 13 May Shift 1

9% Debentures of Rs. 100 each are issued at 5% discount and redeemable at 8% premium, which of the following account will be credited, at the time of issue?

2023: 11 June Shift 3

Redemption of Debenture can be done by many ways. Identify the wrong option.

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