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

Question 16 Chapter 9 of +2-A

Table of Contents

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

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)

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)