Question 10 Chapter 9 of +2-A
Table of Contents
10. X Ltd. issued 12,000; 8% Debentures of ₹ 100 each at a discount of 5% payable as 25% on the application;20% on allotment and balance after three months.
Pass Journal entries.
The solution of Question 10 Chapter 9 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr | 3,00,000 | |||
| To 8%Debenture application A/c | 3,00,000 | ||||
| (Being the application money received ) | |||||
| 8% Debenture application A/c | Dr | 3,00,000 | |||
| To 9% Debenture A/c | 3,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| 8%Debenture allotment A/c | Dr | 2,40,000 | |||
| Discount on issue of Debenture A/c | Dr | 60,000 | |||
| To 9%Debebture A/c | 3,00,000 | ||||
| (Being the allotment money due with security premium ) | |||||
| Bank A/c | Dr | 2,40,000 | |||
| To 8% Debenture Allotment A/c | 2,40,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| 8%Debenture First and final call A/c | Dr | 6,00,000 | |||
| To 8% Debenture A/c | 6,00,000 | ||||
| (Being the first and final call money due ) | |||||
| Bank A/c | Dr | 6,00,000 | |||
| To 8%Debenture first and final call A/c | 6,00,000 | ||||
| (Being first and final call money received ) | |||||
Working Notes :
Face Value of Debenture = Rs 100
Discount (Rs 100 × 5%) = Rs 5
∴ Issue Price = Rs 95
Amount Payable as:
| On Application (25%) | Rs 25 per debenture |
| On Allotment (20%) | Rs 20 (25 – 5) per debenture |
| On First and Final Call (50%) | Rs 50 per debenture |
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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