Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Alka Ltd. issued 5,000, 10% Debentures of ₹1,000 each at a discount of 10%, redeemable at a premium of 5% after 5 years. According to the terms of issue, ₹500 was payable on application and the balance amount on allotment of debentures. Record the necessary entries regarding the issue of the 10% Debentures. (Delhi 2015 C)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c (5,000 × ₹500) Dr. | 25,00,000 | |||
| To Debenture Application A/c | 25,00,000 | |||
| (Application money received on 5,000 debentures) | ||||
| Debenture Application A/c Dr. | 25,00,000 | |||
| To 10% Debentures A/c | 25,00,000 | |||
| (Transfer of application money to Debentures Account) | ||||
| Debenture Allotment A/c (5,000 × ₹400) Dr. | 20,00,000 | |||
| Loss on Issue of Debentures A/c (5,000 × ₹150) Dr. | 7,50,000 | |||
| To 10% Debentures A/c (5,000 × ₹500) | 25,00,000 | |||
| To Premium on Redemption of Debentures A/c (5,000 × ₹50) | 2,50,000 | |||
| (Allotment due on 5,000 debentures issued at a discount of ₹100 per debenture and redeemable at a premium of 5%; the combined discount and redemption premium charged to Loss on Issue of Debentures) | ||||
| Bank A/c Dr. | 20,00,000 | |||
| To Debenture Allotment A/c | 20,00,000 | |||
| (Allotment money received) |
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.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.13 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Issue of Debentures.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.13 - Issue of Debentures" instantly.