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

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

Question 27 Chapter 9 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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

Leave a Reply

Your email address will not be published. Required fields are marked *