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Question 28 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 28 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1
Question 28 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

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Question 28 Chapter 9 of +2-Part-1

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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/cDr. 100 
 To Debenture Application & allotment A/c   100
 (Being receipt of debenture money received)   
     
 Debenture Application & Allotment A/cDr. 100 
 To 12% Debenture A/c  100
 (Being issue of debentures at par)   
     
 Bank A/cDr. 95 
 To Debenture Application & Allotment A/c  95
 (Being receipt debentures money )   
     
 Debenture Application & Allotment A/cDr. 95 
 Discount on issue of Debentures A/cDr. 5 
 To 10% Debenture A/c  100
 (Being issue of debentures at par redeemable at 10 % premium)   
     
 Bank A/cDr. 105 
 To Debenture Application & Allotment A/c  105
 (Being receipt debentures app. Money)   
     
 Debenture Application & Allotment A/cDr. 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/cDr. 100 
 To Debenture Application & Allotment A/c  100
 (Being receipt debentures app. Money )   
     
 Debenture Application & Allotment A/cDr. 100 
 Loss on issue of Debentures A/cDr. 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/cDr. 95 
 To Debenture Application & Allotment A/c  95
 (Being the receipt of Debenture Application Money)   
     
 Debenture Application & Allotment A/cDr. 95 
 Loss on issue of Debentures A/cDr. 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/cDr. 105 
 To Debenture Application & Allotment A/c  105
 (Being subscription amount received )   
     
 Debenture Application & Allotment A/cDr. 105 
 Loss on issue of Debentures A/cDr. 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.

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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

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