Question 44 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 44 Chapter 9 of +2-A

44. A limited company issued Rs 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.
Pass the Journal entries for issue of debentures and writing off the discount.

The solution of Question 44 Chapter 9 of +2-A: - 

 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		94,000
	To Debenture Application & Allotment A/c				94,000
	(Being application money received on 9%debenture )
	Debenture Application & Allotment A/c	Dr		94,000
	Discount on issue of Debenture A/c	Dr		6,000
	To 9%Debenture A/c				1,00,000
	(Being application and allotment money adjusted )
	Statement of Profit & Loss A/c	Dr		6,000
	To Discount on issue of Debenture A/c				6,000
	(Being a discount issue of debenture written off )

 

 

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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication