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Question no 35 Chapter 2- Class 12 Part 2 Unimax
Jassi Ltd. issue don 1st April, 2021, 10,000, 9% debenture of ₹ 100 each at 6% discount redeemable after five years at a premium of ₹ 10. All the debenture were subscribed. During the year ended 31st March, 2022, the company incurred a loss of ₹ 50,000. It has balance of ₹ 1,20,000 in Securities premium reserve.
Pass the journal entries for issue of debenture and writing off loss issue of debentures.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| 2021 | |||||
| Bank A/c | Dr. | 9,40,000 | |||
| To Debenture application & allotment A/c | 9,40,000 | ||||
| (Being application money received for 10,000, 9% debentures) | |||||
| April 1 | Debentures application & allotment A/c | Dr. | 9,40,000 | ||
| Loss on issue of debenture A/c | Dr. | 1,60,000 | |||
| To Debentures A/c | 10,00,000 | ||||
| To Premium on redemption of debenture A/c | 1,00,000 | ||||
| (Being transfer of application money) | |||||
| 2022 | |||||
| March 31 | Securities premium reserve A/c | Dr. | 1,20,000 | ||
| Statement of Profit & Loss A/c | Dr. | 40,000 | |||
| To Loss on issue of debenture A/c | 1,60,000 | ||||
| (Being loss on issue of debenture written off) | |||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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