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Nori Ltd. issued 20,000… (Class 12 Accountancy 2026, Q3b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 3(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, 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

Nori Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%. Loss on issue of debentures account will be debited by :

  1. (A)₹ 20,00,000
  2. (B)₹ 1,00,000
  3. (C)₹ 3,00,000
  4. (D)₹ 2,00,000

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.

Hints

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

Hint 1

Which items make up loss on issue of debentures?

Hint 2

Premium received on issue goes to a different account.

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 = 20,000 × ₹ 100 = ₹ 20,00,000. The 10% premium on issue is a gain credited to Securities Premium; it is not netted against the loss.

  2. Loss on issue = premium payable on redemption = 5% of ₹ 20,00,000 = ₹ 1,00,000. Option (B).

    1 mark

Answer: (B) ₹ 1,00,000

Where the marks are

  • Loss equals premium on redemption ₹ 1,00,000 (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 paper2026 board paper, set 67/5/1: 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.