Question 29 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 29 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 29 Chapter 9 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

29. (Various Cases of Redemption) Journalise the following transactions: The face value of debenture is Rs. 1,000.
40 debentures issued at Rs. 950 each, repayable at Rs. 1,000 each.
(ii) 40 debentures issued at RS. 950 each, repayable at Rs. 1,050 each.
(iii) 40 debentures issued at Rs. 1000 each, repayable at Rs. 1,050 each.
(iv) 40 debentures issued at Rs. 1,050 each, repayable at Rs. 1,000 each.

The solution of Question 29 Chapter 9 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit ₹ Credit ₹
i Bank A/c (40 X950) Dr.   38,000  
  To Debenture Application & allotment A/c       38,000
  (Being app. Money received)      
         
ii Debenture Application & Allotment A/c (40 X950) Dr.   38,000  
  Discount on issue of Debentures A/c(40 X50) Dr.   2,000  
  To Debenture A/c     40,000
  (Being issue of 40 debentures at a discount of ₹ 50 per debenture)      
         
iii Bank A/c (40 X ₹ 950) Dr.   38,000  
  To Debenture Application & Allotment A/c     38,000
  (Being Application Money received)      
         
iv Debenture Application & Allotment A/c Dr.   38,000  
  Loss on issue of Debentures A/c Dr.   4,000  
  To Debenture A/c(40 X1000)     40,000
  To Premium on redemption of debentures A/c (40 X50)     2,000
  (Being issue of debentures at par repayable at premium)      
         
v Bank A/c (40 X 1000) Dr.   40,000  
  To Debenture Application & Allotment A/c     40,000
  (Being receipt debentures app. Money)      
         
vi Debenture Application & Allotment A/c Dr.   40,000  
  Loss on issue of Debentures A/c     2,000  
  To Debenture A/c (40 X1000)     40,000
  To Premium on redemption of debentures A/c(40 X50)     2,000
  (Being issue of debentures at discount repayable at premium )      
         
vii Bank A/c (40 X 1050) Dr.   42,000  
  To Debenture Application & Allotment A/c     42,000
  (Being Application Money received)      
         
viii Debenture Application & Allotment A/c Dr.   42,000  
  To Debenture A/c (40 X1000)     40,000
  To Securities Premium A/c(40 X 50)     2,000
  (Being issue debentures at redeemable at premium at par)      
         

It all about Question 29 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

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