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Moon ltd. issued… (Class 12 Accountancy SQP 2024-25, Q3b)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 3(b)

From the official CBSE sample question paper for 2024-25, section A, question 3(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q3(b) · 1 mark · MCQIssue and Redemption of Debentures

Moon ltd. issued 40,000, 10% debentures of ₹100 each at certain rate of discount and were to be redeemed at 20% premium. Exiting balance of Securities premium before issuing of these debentures was ₹12,00,000 and after writing off loss on issue of debentures , the balance in Securities Premium was ₹2,00,000. At what rate of discount these debentures were issued?

  1. (A)10%
  2. (B)5%
  3. (C)25%
  4. (D)15%

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

The fall in Securities Premium equals the total loss on issue.

Hint 2

Loss on issue = discount + premium on redemption.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Face value = 40,000 × ₹ 100 = ₹ 40,00,000. Securities Premium used to write off the loss = ₹ 12,00,000 − ₹ 2,00,000 = ₹ 10,00,000, so loss on issue = ₹ 10,00,000.

  2. Premium on redemption = 20% = ₹ 8,00,000, so discount = ₹ 2,00,000 = 5% of face value. Option (B).

    1 mark

Answer: (B) 5%

Where the marks are

  • Loss ₹ 10,00,000 less premium on redemption ₹ 8,00,000 = 5% discount (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Issue and Redemption of Debentures, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.