Question 10 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 10 Chapter 9 of +2-A

Question 10 Chapter 9 of +2-A

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)

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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