Question 34 Chapter 9 of Class 12 Part – 2 – 2024

Question 34 Chapter 9 of Class 12 Part – 2 – 2024

34. (Different cases of Issue of Debentures) Give journal entries in each of the following at Rs. 100.alternative cases assuming the face value of a debenture being Rs. 100.
A 12% debenture issued at Rs. 100 repayable at Rs. 100.
(b) A 12% debenture issued at Rs. 95 repayable at Rs. 100.
(c) A 12% debenture issued at Rs. 105 repayable at Rs. 100.
(d) A 12% debenture issued at Rs. 100 repayable at Rs. 105.
(e) A 12% debenture issued at Rs. 95 repayable at Rs.105.
(f) A 12% debenture issued at Rs. 105 repayable at Rs 110.

The solution of Question 34 Chapter 9 of Class 12 Part – 2 – 2024: -

We are providing a solution of Question 34 Chapter 9 of Class 12 Part – 2 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 33 to 36 Chapter no. 9 class 12 of Usha publication. To check the direct solution of question no. 34 from the following video by using time stamps of the video.

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2. Check out the Solution of Question 34 Chapter 9 of Class 12 Part – 2 – 2024 in Article Format:-

Journal

Date	Particulars		L.F.	Debit ₹	Credit ₹
	Bank A/c	Dr.		100
	To Debenture Application & allotment A/c				100
	(Being receipt of debenture money received)
	Debenture Application & Allotment A/c	Dr.		100
	To 12% Debenture A/c				100
	(Being issue of debentures at par)
	Bank A/c	Dr.		95
	To Debenture Application & Allotment A/c				95
	(Being receipt debentures money )
	Debenture Application & Allotment A/c	Dr.		95
	Discount on issue of Debentures A/c	Dr.		5
	To 10% Debenture A/c				100
	(Being issue of debentures at par redeemable at 10 % premium)
	Bank A/c	Dr.		105
	To Debenture Application & Allotment A/c				105
	(Being receipt debentures app. Money)
	Debenture Application & Allotment A/c	Dr.		105
	To 12% Debenture A/c				100
	To Premium on Redemption of Debentures A/c				5
	(Being issue of debentures at discount repayable at premium )
	Bank A/c	Dr.		100
	To Debenture Application & Allotment A/c				100
	(Being receipt debentures app. Money )
	Debenture Application & Allotment A/c	Dr.		100
	Loss on issue of Debentures A/c	Dr.		5
	To 12% Debenture A/c				100
	To Premium on redemption of debentures A/c				5
	(Being the issue of debentures at par but redeemable at 5% prepium)
	Bank A/c	Dr.		95
	To Debenture Application & Allotment A/c				95
	(Being the receipt of Debenture Application Money)
	Debenture Application & Allotment A/c	Dr.		95
	Loss on issue of Debentures A/c	Dr.		10
	To 12% Debenture A/c				100
	To Premium on redemption of debentures A/c				5
	(Being issue of debentures at premium redeemable at par)
	Bank A/c	Dr.		105
	To Debenture Application & Allotment A/c				105
	(Being subscription amount received )
	Debenture Application & Allotment A/c	Dr.		105
	Loss on issue of Debentures A/c	Dr.		10
	To 12% Debenture A/c				100
	To Securities Premium Reserve A/c				5
	To Premium on redemption of debentures A/c				10
	(Being issue of debentures at 5 % discount which are redeemable at 10% premium )

Note : According to prudence & realisation concepts the latter discount (which id to be materialize on redemption ) being an unrealised gain should not be taken into account at the tom od issue & allotment of debentures.