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

Question 17 Chapter 9 of +2-A

Question 17 Chapter 9 of +2-A

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)        

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

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