
Question 25 Chapter 9 of +2-Part-1 - USHA
25. (Different Cases of Debentures issues for Purchase Consideration other than Cash) Suvidha Ltd. Purchased machinery Rs. 1,98,000 from Suppliers Ltd. The payment was to be made by issue of 12% Debentures of Rs. 100 each. Pass the necessary Journal Entries for the purchase of machinery and issue of debentures when :
Debentures are issued at par.
(ii) Debentures are issued at 10% discount.
(iii) Debentures are issued at 10% premium.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| i | Machinery A/c | Dr. | 1,98,000 | ||
| To Suppliers Ltd. | 1,98,000 | ||||
| (Being machinery purchased on credit ) | |||||
| ii (a) | At Par | ||||
| Suppliers Ltd. | Dr. | 1,98,000 | |||
| To 9 % Debenture A/c | 1,98,000 | ||||
| (Being consideration paid by issuing debentures at par ) | |||||
| ii (b) | At a discount of 10% | ||||
| Suppliers Ltd. | Dr. | 1,98,000 | |||
| Discount on issue of Debenture A/c | Dr. | 22,000 | |||
| To 9 % Debenture A/c | 2,20,000 | ||||
| (Being consideration paid by issuing debentures at 20% discount ) | |||||
| ii (c) | At a premium of 10% | ||||
| Suppliers Ltd. | Dr. | 1,98,000 | |||
| To 9 % Debenture A/c | 1,80,000 | ||||
| To Securities Premium A/c | 18,000 | ||||
| (Being consideration paid by issuing debentures at 25% premium ) | |||||
This is all about the Question 25 Chapter 9 of +2-Part-1 - USHA
You can check out the following article to better understand:
Debenture – Meaning, Definition, Features, and types
You Can also read all above articles in Hindi on our Hindi Website
Debenture – Meaning, Definition, Features, and types – In Hindi
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 25 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter No. 9 - Company Accounts (Issue of Debentures).
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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