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Question 27 Chapter 9 of +2-Part-1
27. (Different cases of Issue of Debentures) How will you record the entries relating to issue of debentures in following cases.
(i)Rs. 1,00,000 10% Debentures of Rs. 100 each issued at par redeemable at par.
(ii) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at par but redeemable at Rs. 110.
(iii) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at Rs. 95 but redeemable at Rs. 105.
(iv) Rs. 1,00,000 10 % Debentures of Rs. 100 each issued at Rs. 90 but redeemable at par.
(v) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at Rs. 110 but redeemable at Rs. 100.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| i | Bank A/c | Dr. | 1,00,000 | ||
| To Debenture Application & allotment A/c | 1,00,000 | ||||
| (Being subscription Amount received on 1,000 debentures @ ₹100 each ) | |||||
| ii | Debenture Application & Allotment A/c | Dr. | 1,00,000 | ||
| To 10% Debenture A/c | 1,00,000 | ||||
| (Being issue of debentures at par) | |||||
| iii | Bank A/c | Dr. | 1,00,000 | ||
| To Debenture Application & Allotment A/c | 1,00,000 | ||||
| (Being receipt of Rs. 100 per debentures on 1000 debentures) | |||||
| iv | Debenture Application & Allotment A/c | Dr. | 1,00,000 | ||
| Loss on issue of Debentures A/c | Dr. | 10,000 | |||
| To 10% Debenture A/c | 1,00,000 | ||||
| To Premium on redemption of debentures A/c | 10,000 | ||||
| (Being issue of debentures at par redeemable at 10 % premium) | |||||
| v | Bank A/c | Dr. | 95,000 | ||
| To Debenture Application & Allotment A/c | 95,000 | ||||
| (Being receipt of Rs. 95 per debentures on 1000 debentures) | |||||
| vi | Debenture Application & Allotment A/c | Dr. | 90,000 | ||
| Loss on issue of Debentures A/c | Dr. | 10,000 | |||
| To 10% Debenture A/c | 1,00,000 | ||||
| To Premium on Redemption of Debentures A/c | 5,000 | ||||
| (Being issue of debentures at discount repayable at premium) | |||||
| vii | Bank A/c | Dr. | 90,000 | ||
| To Debenture Application & Allotment A/c | 90,000 | ||||
| (Being receipt of Rs. 110 per debentures on 1000 debentures) | |||||
| viii | Debenture Application & Allotment A/c | Dr. | 90,000 | ||
| Loss on issue of Debentures A/c | Dr. | 10,000 | |||
| To 10% Debenture A/c | 1,00,000 | ||||
| (Being issue of 1000 debentures at redeemable at 10 % premium at par) | |||||
| ix | Bank A/c | Dr. | 1,10,000 | ||
| To Debenture Application & Allotment A/c | 1,10,000 | ||||
| (Being subscription amount received) | |||||
| x | Debenture Application & Allotment A/c | Dr. | 1,10,000 | ||
| To 10% Debenture A/c | 1,00,000 | ||||
| To Premium on redemption of debentures A/c | 10,000 | ||||
| (Being issue of debentures at premium redeemable at par) | |||||
It all about Question 27 Chapter 9 of +2-Part-1, If you have any problem please comment below.
https://tutorstips.com/issue-of-debentures-from-the-point-of-view-of-redemption/
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 27 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 27 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1" instantly.
