Question 19 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 19 Chapter 9 of +2-Part-1

19. (Issue of debentures in consideration other than cash) Tata Ltd purchase machinery worth ₹ 4,75,000. For this company issued 12% debentures of ₹ 100 each at of 5% in satisfaction of the purchase price. Pass the required journal entries

The solution of Question 19 Chapter 9 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit ₹
i Machinery A/c Dr.   4,75,000  
  To Vendor’s A/ c       4,75,000
  (Being machinery purchased )      
         
ii Vendor’s A/ c Dr.   4,75,000  
  Discount on issues of Debenture A/ c Dr.   25,000  
  To Debenture A/c     5,00,000
  (Being consideration paid by issuing debentures at 5% discount )      
         

It all about Question 19 Chapter 9 of +2-Part-1, If you have any problem please comment below.

Issue of Debentures from the point of view of Redemption

You can also Check out the solved question of other Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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