Question 27 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 27 Chapter 9 of +2-Part-1

27. (Different cases of Issue of Debentures) How will you record the entries relating to issue of debentures in following cases.
(i)Rs. 1,00,000 10% Debentures of Rs. 100 each issued at par redeemable at par.
(ii) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at par but redeemable at Rs. 110.
(iii) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at Rs. 95 but redeemable at Rs. 105.
(iv) Rs. 1,00,000 10 % Debentures of Rs. 100 each issued at Rs. 90 but redeemable at par.
(v) Rs. 1,00,000 10% Debentures of Rs. 100 each, issued at Rs. 110 but redeemable at Rs. 100.

The solution of Question 27 Chapter 9 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹
i	Bank A/c	Dr.		1,00,000
	To Debenture Application & allotment A/c				1,00,000
	(Being subscription Amount received on 1,000 debentures @ ₹100 each )
ii	Debenture Application & Allotment A/c	Dr.		1,00,000
	To 10% Debenture A/c				1,00,000
	(Being issue of debentures at par)
iii	Bank A/c	Dr.		1,00,000
	To Debenture Application & Allotment A/c				1,00,000
	(Being receipt of Rs. 100 per debentures on 1000 debentures)
iv	Debenture Application & Allotment A/c	Dr.		1,00,000
	Loss on issue of Debentures A/c	Dr.		10,000
	To 10% Debenture A/c				1,00,000
	To Premium on redemption of debentures A/c				10,000
	(Being issue of debentures at par redeemable at 10 % premium)
v	Bank A/c	Dr.		95,000
	To Debenture Application & Allotment A/c				95,000
	(Being receipt of Rs. 95 per debentures on 1000 debentures)
vi	Debenture Application & Allotment A/c	Dr.		90,000
	Loss on issue of Debentures A/c	Dr.		10,000
	To 10% Debenture A/c				1,00,000
	To Premium on Redemption of Debentures A/c				5,000
	(Being issue of debentures at discount repayable at premium)
vii	Bank A/c	Dr.		90,000
	To Debenture Application & Allotment A/c				90,000
	(Being receipt of Rs. 110 per debentures on 1000 debentures)
viii	Debenture Application & Allotment A/c	Dr.		90,000
	Loss on issue of Debentures A/c	Dr.		10,000
	To 10% Debenture A/c				1,00,000
	(Being issue of 1000 debentures at redeemable at 10 % premium at par)
ix	Bank A/c	Dr.		1,10,000
	To Debenture Application & Allotment A/c				1,10,000
	(Being subscription amount received)
x	Debenture Application & Allotment A/c	Dr.		1,10,000
	To 10% Debenture A/c				1,00,000
	To Premium on redemption of debentures A/c				10,000
	(Being issue of debentures at premium redeemable at par)

It all about Question 27 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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement