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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
On 1st October, 2022, Ninza Ltd. issued 4,000, 8% Debentures of ₹100 each at a discount of 10%. The company had a balance of ₹50,000 in the Securities Premium Account on the same date. Pass the necessary Journal entries for the issue of debentures and to write off the discount on issue of debentures. (CBSE 2024)
JOURNAL (Books of Ninza Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 3,60,000 | |||
| To Debenture Application and Allotment A/c | 3,60,000 | |||
| (Application money received on issue of debentures) | ||||
| Debenture Application and Allotment A/c Dr. | 3,60,000 | |||
| Discount on Issue of Debentures A/c Dr. | 40,000 | |||
| To 8% Debentures A/c | 4,00,000 | |||
| (Debentures allotted and application money transferred to Debentures Account) | ||||
| Securities Premium Reserve A/c Dr. | 40,000 | |||
| To Discount on Issue of Debentures A/c | 40,000 | |||
| (Discount on issue of debentures written off against Securities Premium Reserve) |
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.15 - 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.
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