Question 38 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 38 Chapter 9 of +2-A

38. Pass necessary Journal entries for the issue of debentures in the following cases:
(a)Rs 40,000; 12% Debentures of 􀀀 100 each issued at a premium of 5% redeemable at par.
(b)70,000; 12% Debentures of 􀀀 100 each issued at a premium of 5% redeemable at Rs 10.

The solution of Question 38 Chapter 9 of +2-A: - 

 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		42,000
	To Debenture Application and Allotment A/c				42,000
	(Being Debenture Application Received )
	Debenture application and allotment A/c	Dr		42,000
	To 12%Debenture A/c				40,000
	To Securities Premium A/c				2,000
	(Being Debenture issued at a premium)

 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		73,500
	To Debenture Application and Allotment A/c				73,500
	(Being Debenture Application Received )
	Debenture Application A/c	Dr		73,500
	Debenture Application A/c	Dr		7,000
	To 12%Debenture A/c				70,000
	To Securities Premium A/c				3,500
	To Premium on Redemption A/c				7,000
	(Being Debenture issued at a premium)

 

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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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