Question 26 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 26 Chapter 9 of +2-A

Question 26 Chapter 9 of +2-A

26. Grown Ltd. issued 500, 10% Debentures of 􀀀 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of 􀀀 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.

The solution of Question 26 Chapter 9 of +2-A: – 

         
Date Particulars
L.F. Debit Credit
  Incorporation Expenses A/c Dr   5,00,000  
  To Promoters A/c       5,00,000
  (Being amount due to promoters for their services. )        
  Promoters. A/c Dr   5,00,000  
  To 10%Debenture A/c       5,00,000
  (Being debenture issued )        
  Underwriting Commission A/c Dr   1,00,000  
  To Underwriters A/c       1,00,000
  (Being amount due to underwriter for their service )        
  Underwriters A/c Dr   1,00,000  
  To 10%Debenture A/c       1,00,000
  (Being debenture issued )        
  Statement of profit and loss A/c Dr   6,00,000  
  To Incorporation Expenses A/c       5,00,000
  To Writing Commission A/c       1,00,000
  (Being expenses transferred to statement of profit and loss at the end of year. )        

 


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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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