Question 17 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 17 Chapter 9 of +2-A

Table of Contents

The solution of Question 17 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)

17. Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchanged and for the balance the company issued 9% Debenture of ₹ 100 each at a premium of 10% in favour of M/s. Furniture Mart.Pass Journal entries in the books of Deepak Ltd.

The solution of Question 17 Chapter 9 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Furniture A/c	Dr		1,35,000
	To Furniture Mart A/c				1,35,000
	(Being asset purchased )
	Furniture Mart A/c	Dr		1,10,000
	To Bills Payable A/c				1,10,000
	(Being B.P received)
	Vendor A/c	Dr		1,10,000
	To 9%Debenture A/c				1,00,000
	To securities premium A/c				10,000
	(Being Debenture Issued)

Working Note

No of Debenture to be issued	=	Purchase consideration	=	1,10,000	=	=1,000 shares
		Issue price		110

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)