
Question 28 Chapter 9 of +2-Part-1
28. (Different cases of Issue of Debentures) Give journal entries in each of the following at Rs. 100.alternative cases assuming the face value of a debenture being Rs. 100.
A 12% debenture issued at Rs. 100 repayable at Rs. 100.
(b) A 12% debenture issued at Rs. 95 repayable at Rs. 100.
(c) A 12% debenture issued at Rs. 105 repayable at Rs. 100.
(d) A 12% debenture issued at Rs. 100 repayable at Rs. 105.
(e) A 12% debenture issued at Rs. 95 repayable at Rs.105.
(f) A 12% debenture issued at Rs. 105 repayable at Rs 110.
The solution of Question 28 Chapter 9 of +2 Part-1: –
Journal |
|||||
Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
Bank A/c | Dr. | 100 | |||
To Debenture Application & allotment A/c | 100 | ||||
(Being receipt of debenture money received) | |||||
Debenture Application & Allotment A/c | Dr. | 100 | |||
To 12% Debenture A/c | 100 | ||||
(Being issue of debentures at par) | |||||
Bank A/c | Dr. | 95 | |||
To Debenture Application & Allotment A/c | 95 | ||||
(Being receipt debentures money ) | |||||
Debenture Application & Allotment A/c | Dr. | 95 | |||
Discount on issue of Debentures A/c | Dr. | 5 | |||
To 10% Debenture A/c | 100 | ||||
(Being issue of debentures at par redeemable at 10 % premium) | |||||
Bank A/c | Dr. | 105 | |||
To Debenture Application & Allotment A/c | 105 | ||||
(Being receipt debentures app. Money) | |||||
Debenture Application & Allotment A/c | Dr. | 105 | |||
To 12% Debenture A/c | 100 | ||||
To Premium on Redemption of Debentures A/c | 5 | ||||
(Being issue of debentures at discount repayable at premium ) | |||||
Bank A/c | Dr. | 100 | |||
To Debenture Application & Allotment A/c | 100 | ||||
(Being receipt debentures app. Money ) | |||||
Debenture Application & Allotment A/c | Dr. | 100 | |||
Loss on issue of Debentures A/c | Dr. | 5 | |||
To 12% Debenture A/c | 100 | ||||
To Premium on redemption of debentures A/c | 5 | ||||
(Being the issue of debentures at par but redeemable at 5% prepium) | |||||
Bank A/c | Dr. | 95 | |||
To Debenture Application & Allotment A/c | 95 | ||||
(Being the receipt of Debenture Application Money) | |||||
Debenture Application & Allotment A/c | Dr. | 95 | |||
Loss on issue of Debentures A/c | Dr. | 10 | |||
To 12% Debenture A/c | 100 | ||||
To Premium on redemption of debentures A/c | 5 | ||||
(Being issue of debentures at premium redeemable at par) | |||||
Bank A/c | Dr. | 105 | |||
To Debenture Application & Allotment A/c | 105 | ||||
(Being subscription amount received ) | |||||
Debenture Application & Allotment A/c | Dr. | 105 | |||
Loss on issue of Debentures A/c | Dr. | 10 | |||
To 12% Debenture A/c | 100 | ||||
To Securities Premium Reserve A/c | 5 | ||||
To Premium on redemption of debentures A/c | 10 | ||||
(Being issue of debentures at 5 % discount which are redeemable at 10% premium ) |
Note : According to prudence & realisation concepts the latter discount (which id to be materialize on redemption ) being an unrealised gain should not be taken into account at the tom od issue & allotment of debentures.
It all about Question 28 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