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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
On 1st January, 2024, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value ₹100 each, redeemable at a 5% premium in equal proportions at the end of 5, 10, and 15 years. It has a balance of ₹10,000 in Securities Premium Reserve. Pass Journal entries. Also give Journal entries for writing off the Loss on Issue of Debentures.
JOURNAL (Books of Raha Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2024 1st January | Bank A/c Dr. | 6,00,000 | ||
| To Debenture Application A/c | 6,00,000 | |||
| (Application money received for 6,000 debentures at ₹100 each) | ||||
| Debenture Application A/c Dr. | 6,00,000 | |||
| Loss on Issue of Debentures A/c Dr. | 30,000 | |||
| To 8% Debentures A/c | 6,00,000 | |||
| To Premium on Redemption of Debentures A/c | 30,000 | |||
| (6,000; 8% Debentures of ₹100 each issued, redeemable at a 5% premium) | ||||
| 2024 31 March | Securities Premium Reserve A/c Dr. | 10,000 | ||
| Statement of Profit and Loss A/c Dr. | 20,000 | |||
| To Loss on Issue of Debentures A/c | 30,000 | |||
| (Loss on Issue of Debentures written off, partly against Securities Premium Reserve and the remainder against the Statement of Profit and Loss) |
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.51 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Issue of Debentures.
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