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

Question 26 Chapter 9 of +2-A

Table of Contents

The solution of Question 26 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)

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. )