Question 50 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 50 Chapter 9 of +2-A

50. Office Products Ltd, issued on 1st April 2018, 20,000, 9% Debentures of 􀀀 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. The issue price was payable along with the application. Pass the necessary journal entries.

The solution of Question 50 Chapter 9 of +2-A: - 

 

Date	Particulars		L.F.	Debit	Credit
April 1	Bank A/c	Dr		22,00,000
	To Debenture Application and Allotment A/c				22,00,000
	(Being application and allotment money received foe 9%Debenture )
	Debenture Application and Allotment A/c	Dr		22,00,000
	Loss on the issue of Debenture A/c	Dr		1,00,000
	To 9% Debenture A/c				20,00,000
	To Securities Premium A/c				2,00,000
	To Premium on Redemption of Debenture A/c				1,00,000
	(Being 8% Debenture issued at a discount and redeemable at a premium )
Mar 31 2019	Securities Premium Reserve A/c	Dr		1,00,000
	To Loss on the issue of Debentures A/c				1,00,000
	(Being loss on issue of debenture written off from Securities Premium Reserve )

 

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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