Question no 34 Chapter 2- Class 12 Part 2 Unimax

Question no 34 Chapter 2- Class 12 Part 2 Unimax

On 1-4-2021, Riya Ltd. issued 30,000 8% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8% after three years. The amount was payable as follows:
On application ₹ 40per debenture.
Balance on allotment
Riya has a balance of ₹ 60,000 in Securities premium reserve and ₹ 1,50,000 in General reserve. Profit for the year was ₹ 2,00,000.
Pass the journal entries for issue of debentures and writing off loss on issue of debentures.

The solution of Question 34 Chapter 2 of +2 Part-2: -

Journal

Date	Particulars		L.F.	Debit	Credit
2021
April 1	Bank A/c	Dr.		12,00,000
	To Debenture Application A/c				12,00,000
	(Being receipt of application money on 30,000 debentures @ ₹ 40 each)
April 1	Debenture Application A/c	Dr.		12,00,000
	To Debenture A/c				12,00,000
	(Being application money transferred to debentures account)
April 1	Debenture allotment A/c	Dr.		16,50,000
	Loss on issue of debentures A/c	Dr.		3,90,000
	To Debenture A/c				18,00,000
	To Premium on Redemption A/c				2,40,000
	(Being amount due @ ₹ 55 each on 30,000 debentures issued at 5% discount and redeemable at 8% premium)
April 1	Bank A/c	Dr.		16,50,000
	To Debenture allotment A/c				16,50,000
	(Being allotment money received)
2022
March 31	Securities premium reserve A/c	Dr.		60,000
	General reserve A/c	Dr.		1,50,000
	Statement of Profit & Loss A/c	Dr.		1,80,000
	To Loss on issue of debenture A/c				3,90,000
	(Being loss on issue of debenture written off)