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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
B Ltd. issued 9% Debentures of ₹100 each at a premium of 20% to vendors for the purchase of plant costing ₹6,00,000. Pass the necessary Journal entry for the payment made to vendors. (CBSE 2020)
JOURNAL (Books of B Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Plant A/c Dr. | 6,00,000 | |||
| To Vendor’s A/c | 6,00,000 | |||
| (Plant purchased) | ||||
| Vendor’s A/c Dr. | 6,00,000 | |||
| To 9% Debentures A/c | 5,00,000 | |||
| To Securities Premium Reserve A/c | 1,00,000 | |||
| (5,000; 9% Debentures of ₹100 each issued at a premium of 20% (₹120 per debenture) to vendors, for purchase of plant costing ₹6,00,000) |
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.18 - 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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