Question 33 Chapter 9 of +2-A

Question 33 Chapter 9 of +2-A

33. Pass journal entries in the following cases:
(a)A Co.Ltd. issued Rs 40,000; 12% Debentures at a premium of 5% redeemable at par.
(b)A Co.Ltd. issued Rs 40,000; 12% Debentures at a discount of 10% redeemable at par.
(c)A Co.Ltd. issued Rs 40,000; 12% Debentures at par redeemable at 10% premium.
(d)A Co.Ltd. issued Rs 40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e)A Co.Ltd. issued Rs 40,000; 12% Debentures at a premium of 10% redeemable at 110%..

The solution of Question 33 Chapter 9 of +2-A: - 

(a)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		42,000
	To 12%Debenture Application/c				42,000
	(Being Debenture application Received )
	Debenture application A/c	Dr		42,000
	To 12% Application A/c				40,000
	To Debenture Application/c				2,000
	(Being Debenture application Received )

 

(b)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		36,000
	To 12%Debenture Application/c				36,000
	(Being Debenture application Received )
	12%Debenture application A/c	Dr		36,0000
	Loss on the issue of Debenture A/c	Dr		4,000
	To Debenture Application/c				40,000
	(Being Debenture issued )

 

(c)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To Debenture Application/c				40,000
	(Being Debenture application Received )
	Debenture application A/c	Dr		40,000
	Loss on the issue of Debenture A/c	Dr		4,000
	To Debenture Application/c				40,000
	To Premium on Redemption/c				4,000
	(Being Debenture issued )

 

(d)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To Debenture Application/c				40,000
	(Being Debenture application Received )
	Debenture application A/c	Dr		38,000
	Discount on Issue of debenture A/c	Dr		2,000
	Loss on the issue of Debenture A/c	Dr		2,000
	To Debenture Application/c				40,000
	To Premium on Redemption/c				4,000
	(Being Debenture issued )

 

 

(e)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		40,000
	To Debenture Application/c				40,000
	(Being Debenture application Received )
	Debenture application A/c	Dr		44,000
	Loss on the issue of Debenture A/c	Dr		4,000
	To Debenture Application/c				40,000
	To Securities premium A/c				4,000
	To Premium on Redemption/c				4,000
	(Being Debenture issued )

 

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

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