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Question 16 Chapter 9 of +2-Part-1
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16. (Calls in advance/Interest on calls in advance) Merchants Debentures Issued 1000 , 8 % debentures of Rs. 500 each at par payable as under:
| ₹ 100 | on application on 1st January , 2018 |
| ₹ 120 | on allotment on 1st March , 2018 |
| ₹ 130 | on first call on 1st June, 2018. |
| ₹ 150 | on final call on 1st Oct., 2018 |
Applications for the debentures were received in full and allotment was made. One debenture holder holding Rs. 40 debentures paid the amount of first and second1st Oct., 2018calls with allotment. According to the articles of association 10% interest on calls in advance is payable.
Pass necessary journal entries in the books of company assuming that interest on calls in advance was paid on 1st October, 2018.
The solution of Question 16 Chapter 9 of +2 Part-1: –
Calculation of interest on calls-in- advance on March 1,2018
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Amount received as calls-in-advance = 40(130+150)= Rs. 11,200
Out of which Rs. 5,200 is to be appropriated as first call money on June , 1 2018.
Interest on Rs. 5,200 @ 10 % premium pre annum for 3 months = Rs. 130
(i) Remaining amount (11,200-5,200) Rs. 6,000 to be appropriated as second final call on October 1, 2018
Interest on Rs. 6,000 @ 10 % premium pre annum for 7 months = Rs. 350
(ii) Total interest paid on Oct. 1, 2018 = 130+350= Rs. 480
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| Journal | |||||
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ | |
| 2018 | Bank A/c | Dr. | 1,00,000 | ||
| Jan 1 | To Debenture Application A/c | 1,00,000 | |||
| (Being app. Money received ) | |||||
| Debentures Application A/c | Dr. | 1,00,000 | |||
| To 8% Debentures A/c | 1,00,000 | ||||
| (Being transfer of application money) | |||||
| Mar 1 | Debentures Allotment A/c | Dr. | 1,20,000 | ||
| To 8% Debentures A/c | 1,20,000 | ||||
| (Being allotment money due ) | |||||
| Mar 1 | Bank A/c | Dr. | 1,31,200 | ||
| To Debentures allotment A/c | 1,20,000 | ||||
| To calls –in- advance A/c | 11,200 | ||||
| (Being amount received on allotment + calls-in-advance on 40 debentures ) | |||||
| June1 | Debentures first call A/c | Dr. | 1,30,000 | ||
| To 8% Debentures A/c | 1,30,000 | ||||
| (Being amount due on first call ) | |||||
| June1 | Bank A/c | Dr. | 1,24,800 | ||
| Calls-in-advance A/c | Dr. | 5,200 | |||
| To Debentures first call A/c | 1,30,000 | ||||
| (Being amount received on first call ) | |||||
| Oct. 1 | Debentures final A/c | Dr. | 1,50,000 | ||
| To 8% Debentures A/c | 1,50,000 | ||||
| (Being amount due on final call ) | |||||
| Oct. 1 | Bank A/c | Dr. | 1,44,000 | ||
| Calls-in-advance A/c | Dr. | 6,000 | |||
| To Debentures first call A/c | 1,50,000 | ||||
| (Being amount received on final call ) | |||||
| Oct. 1 | Interest on calls-in-arrears A/c | Dr. | 480 | ||
| To Bank A/c | 480 | ||||
It all about Question 16 Chapter 9 of +2-Part-1, If you have any problem please comment below.
Issue of Debentures from the point of view of Redemption
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 9 – Company Accounts (Issue of Debentures) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 3 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1
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Question 24 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
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Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
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