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From the given… (Class 12 Accountancy SQP 2025-26, Q12)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 12

From the official CBSE sample question paper for 2025-26, section A, question 12, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q12 · 1 mark · MCQCompetency-basedIssue and Redemption of Debentures

From the given hypothetical situation, answer Q 12 – 14.
Floater Ltd. issued 60,000; 8% debentures of ₹ 100 each at 5% Discount and to be redeemed at 10% premium at the end of 5 years. On the date of issue, balance in Securities Premium was ₹ 8,00,000 and Statement of Profit Loss (Dr.) was ₹ 5,00,000.

Loss on Issue of Debentures is to be written off as ______ out of Securities Premium and ______ out of Statement of Profit and Loss.

  1. (A)₹ 4,50,000 ; ₹ 4,50,000
  2. (B)₹ 6,00,000 ; ₹ 3,00,000
  3. (C)₹ 8,00,000 ; ₹ 1,00,000
  4. (D)₹ 4,00,000 ; ₹ 5,00,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Loss on issue includes both the discount and the premium payable on redemption.

Hint 2

Which balance is used first to write off this loss?

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 = 60,000 × ₹ 100 = ₹ 60,00,000. Loss on issue = discount 5% (₹ 3,00,000) + premium on redemption 10% (₹ 6,00,000) = ₹ 9,00,000.

  2. Securities Premium is used first: ₹ 8,00,000. The balance ₹ 1,00,000 is written off from the Statement of Profit and Loss. Option (C).

    1 mark

Answer: (C) ₹ 8,00,000 ; ₹ 1,00,000

Where the marks are

  • Loss ₹ 9,00,000 written off from Securities Premium first (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 2025-26: 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.