Question 28 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 28 Chapter 9 of +2-A

Question 28 Chapter 9 of +2-A

28. Best Barcode Ltd. took a loan of Rs 5,00,000 from a bank giving Rs 6,00,000; 9% Debentures as collateral security. Pass journal entries regarding the issue of debentures, if any, and show this loan in the Balance Sheet of the company.

The solution of Question 28 Chapter 9 of +2-A: – 

 

Date Particulars
L.F. Debit Credit
  Bank A/c Dr   5,00,000  
  To Loan A/c       5,00,000
  (Being loan is taken again issuing of debenture )        

 

 

Particulars
 Details
Amount
I. Equity and Liabilities    
1. Shareholders’ Funds    
2. Share Application Money Pending Allotment    
3. Non-Current Liabilities    
(a) Long term borrowings   5,00,000
4. Current Liabilities    
Total   5,00,000
II. Assets    
1.Non-Current Assets    
(a) Fixed Assets    
Tangible Assets    
2. Current Assets    
(d) Cash and Cash equivalents   5,00,000
Total   5,00,000

 

 

Particulars
 Details
Amount
Long term Borrowings    
Loan    
Secured by the issue of Debentures   5,00,000
Cash and Cash Equivalent    
Cash at Bank    5,00,000

 

 

Date Particulars
L.F. Debit Credit
  Bank A/c Dr   5,00,000  
  To Loan A/c       5,00,000
  (Being loan is taken again issuing of debenture )        
  Debenture Suspense A/c Dr   6,00,000  
  To 9% Debenture A/c       6,00,000
  (Being Debenture issued )        

 

 

Particulars
 Details
Amount
I. Equity and Liabilities    
1. Shareholders’ Funds    
2. Share Application Money Pending Allotment    
3. Non-Current Liabilities    
(a) Long term borrowings   5,00,000
4. Current Liabilities    
Total   5,00,000
II. Assets    
1.Non-Current Assets    
(a) Fixed Assets    
Tangible Assets    
2. Current Assets    
(d) Cash and Cash equivalents   5,00,000
Total   5,00,000

 

Particulars
 Details
Amount
Long term Borrowings      
Loan      
Secured by the issue of Debentures     5,00,000
Loan( secured by issue of 9% Debenture of Rs 6,00,000 as collateral security )
9% Debenture
     
Issued as collateral security to bank against the loan 6,00,000    
Less: Debenture suspense account 6,00,000    
Cash and Cash Equivalent      
Cash at Bank      5,00,000

 

 

 

 

 


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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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2 Book 2 min - Question 28 Chapter 9 of +2-A - T.S. Grewal 12 Class

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