CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures

Refer to CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures. We have provided exhaustive High Order Thinking Skills (HOTS) questions and answers for Class 12 Accountancy Part 2 Chapter 2 Issue and Redemption of Debentures. Designed for the 2025-26 exam session, these expert-curated analytical questions help students master important concepts and stay aligned with the latest CBSE, NCERT, and KVS curriculum.

Part 2 Chapter 2 Issue and Redemption of Debentures Class 12 Accountancy HOTS with Solutions

Practicing Class 12 Accountancy HOTS Questions is important for scoring high in Accountancy. Use the detailed answers provided below to improve your problem-solving speed and Class 12 exam readiness.

HOTS Questions and Answers for Class 12 Accountancy Part 2 Chapter 2 Issue and Redemption of Debentures


Q. 1. Sun Ltd. issued 1000 8% debentures of Rs. 1000 each as  fully paid  to Star Ltd. as consideration for a machinery purchased. Pass necessary journal entries.
Soln:
CBSE_Class_12_Accountancy_lssue_Redemption_Set_1
Soln: (i) Bank loan raised
    Bank a/c Dr.
        Bank loan a/c
(Raising of bank loan)
 
(ii) Issue of debenture as collateral security
Method 1
No journal entry is made in the books because the
debentures will become above only when the loan is
not repaid.
Method 2
Debenture syspense a/c     Dr.
          X% debentures a/c
(Issue of debentures as collateral security)
 
3. Identify the terms of issue and redemption of debentures from the given journal entries and write appropriate narrations, for debentures having a face value of Rs. 1000.
CBSE_Class_12_Accountancy_lssue_Redemption_Set_2
Soln: Case I:   Issued at premium and redeemable at par Narrations  :  (a) The  issue of 2,000 debentures of Rs. 1,000 each at Rs. 1,050.
(b) The debentures due for redemption.
(c) The amount paid on redemption
 
Case II:   Issued at par and redeemable at premium Narrations:
(a) The issue of 2000 debentures of Rs. 1000 each and redeemable at Rs. 1,050.
(b) The debentures along with premium due for redemption
(c) The amount paid on redemption.
 
Q.4. New India Ltd. has outstanding 1,100 10% debentures of Rs. 200 each. On April 1, 2005, the Board of Directors have decided to purchase 20% of own debenture for cancellation at Rs. 200 each. Record necessary entries for the same.
Soln: 
CBSE_Class_12_Accountancy_lssue_Redemption_Set_3
 
Q.5. On 1st January, 2006, the company purchased de- bentures  of  the  face  value  of Rs.  2,00,000  for Rs. 1,97,800 in the open market, held them as investments for one year and then cancelled them.

CBSE_Class_12_Accountancy_lssue_Redemption_Set_4
 
Q.6. Traders Ltd.  issued on 1st Jan. 2004, 5000, 8% Debentures of Rs. 100 each at a discount of 5%. They are repayable after 5 years at a premium of 5%. All the debentures have been subscribed. Pass entry on 1st Jan 2004.
CBSE_Class_12_Accountancy_lssue_Redemption_Set_5
Q.8. XYZ Ltd. issued 10,000 12% debentures of Rs. 100 each at par. They are redeemable   at a premium of 5% after six years. Pass entries at  the time of issue of debentures and at the time of redemption of debentures.
CBSE_Class_12_Accountancy_lssue_Redemption_Set_6
Part 1 Chapter 01 Accounting for Partnership Basic Concepts
CBSE Class 12 Accountancy HOTs Partnership Basic Concepts
Part 1 Chapter 02 Reconstitution of a Partnership Firm Admission of a Partner
CBSE Class 12 Accountancy HOTs Admission Of A Partner
Part 1 Chapter 03 Reconstitution of a Partnership Firm Retirement/Death of a Partner
CBSE Class 12 Accountancy HOTs Death Retirement Of A Partner
Part 1 Chapter 04 Dissolution of Partnership Firm
CBSE Class 12 Accountancy HOTs Dissolution of A partnership firm
Part 1 Chapter Accounting for Not-for-Profit Organisation
CBSE Class 12 Accountancy HOTs Accounting for Not-for- Profit Organisation
Part 2 Chapter 01 Accounting for Share Capital
CBSE Class 12 Accountancy HOTs Accounting For Share Capital
Part 2 Chapter 02 Issue and Redemption of Debentures
CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures
Part 2 Chapter 03 Financial Statements of a Company
CBSE Class 12 Accountancy HOTs Financial Statements of a Company
Part 2 Chapter 04 Analysis of Financial Statements
CBSE Class 12 Accountancy HOTs Analysis of Financial Statement
Part 2 Chapter 05 Accounting Ratios
CBSE Class 12 Accountancy HOTs Accounting Ratios
Part 2 Chapter 06 Cash Flow Statement
CBSE Class 12 Accountancy HOTs Cash Flow Statement
~ Class 12 Accountancy (Old Chapters)
CBSE Class 12 Accountancy HOTs Accounting for Debentures

HOTS for Part 2 Chapter 2 Issue and Redemption of Debentures Accountancy Class 12

Students can now practice Higher Order Thinking Skills (HOTS) questions for Part 2 Chapter 2 Issue and Redemption of Debentures to prepare for their upcoming school exams. This study material follows the latest syllabus for Class 12 Accountancy released by CBSE. These solved questions will help you to understand about each topic and also answer difficult questions in your Accountancy test.

NCERT Based Analytical Questions for Part 2 Chapter 2 Issue and Redemption of Debentures

Our expert teachers have created these Accountancy HOTS by referring to the official NCERT book for Class 12. These solved exercises are great for students who want to become experts in all important topics of the chapter. After attempting these challenging questions should also check their work with our teacher prepared solutions. For a complete understanding, you can also refer to our NCERT solutions for Class 12 Accountancy available on our website.

Master Accountancy for Better Marks

Regular practice of Class 12 HOTS will give you a stronger understanding of all concepts and also help you get more marks in your exams. We have also provided a variety of MCQ questions within these sets to help you easily cover all parts of the chapter. After solving these you should try our online Accountancy MCQ Test to check your speed. All the study resources on studiestoday.com are free and updated for the current academic year.

Where can I download the latest PDF for CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures?

You can download the teacher-verified PDF for CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures from StudiesToday.com. These questions have been prepared for Class 12 Accountancy to help students learn high-level application and analytical skills required for the 2025-26 exams.

Why are HOTS questions important for the 2026 CBSE exam pattern?

In the 2026 pattern, 50% of the marks are for competency-based questions. Our CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures are to apply basic theory to real-world to help Class 12 students to solve case studies and assertion-reasoning questions in Accountancy.

How do CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures differ from regular textbook questions?

Unlike direct questions that test memory, CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures require out-of-the-box thinking as Class 12 Accountancy HOTS questions focus on understanding data and identifying logical errors.

What is the best way to solve Accountancy HOTS for Class 12?

After reading all conceots in Accountancy, practice CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures by breaking down the problem into smaller logical steps.

Are solutions provided for Class 12 Accountancy HOTS questions?

Yes, we provide detailed, step-by-step solutions for CBSE Class 12 Accountancy HOTs Issue And Redemption of Debentures. These solutions highlight the analytical reasoning and logical steps to help students prepare as per CBSE marking scheme.