Question 16 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 16 Chapter 9 of +2-A

Question 16 Chapter 9 of +2-A

16. Reliance Ltd. purchased machinery costing ​₹  1,35,000. It was agreed that the purchase consideration is paid by issuing 9% Debentures of ​₹  100 each. Assume debentures have been issued
(i) at par and
(ii)at a discount of 10%.
Give necessary journal entries.

The solution of Question 16 Chapter 9 of +2-A: – 

         
Date Particulars
L.F. Debit Credit
   Machine A/c Dr   1,35,000  
  To Vendor A/c       1,35,000
  (Being asset purchased )        
  Vendor A/c Dr   1,35,000  
  To 6%Debenture A/c       1,35,000
  (Being Debenture Issued)        

Working Note

 

No of Debenture to be issued  = Purchase consideration = 1,35,000 =  1,350 shares
Issue price 100

 

 

Date Particulars
L.F. Debit Credit
   Machine A/c Dr   1,35,000  
  To Vendor A/c       1,35,000
  (Being asset purchased )        
  Vendor A/c Dr   1,35,000  
  Discount on Issue of Debenture A/c Dr   15,000  
  To 6%Debenture A/c       1,50,000
  (Being Debenture Issued)        

Working Note

 

No of Debenture to be issued  = Purchase consideration = 1,35,000 =  1,500 shares
Issue price 90

 

 


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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)

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)

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