Question 3 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 3 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 3 Chapter 9 of +2-Part-1

3. (Issue at Premium) Atlas Ltd. Issue 5,000, 12% Debentures of Rs. 100 each at 10% premium, redeemable at par after 5 years, payable as Rs. 60 an application and the balance on allotment Debentures were fully subscribed and all money was duly received.
Prepare Journal and the Balance Sheet when premium money has been called up (a) on application (b) on allotment.


The solution of Question 3 Chapter 9 of +2 Part-1: –

(a) When premium is received on application

Journal
Date   Particulars
L.F. Debit Credit
  Bank A/c (5,000X 60) Dr.   3,00,000  
  To 12 % Debenture Application A/c       3,00,000
  (Being app. Money received )      
         
  12 % Debenture Application A/c Dr.   3,00,000  
  To 12% Debenture A/c     2,50,000
  To Securities Premium Reserve A/c     50,000
  (Being 5,000 debenture allotted )      
         
  12 % Debenture Allotment A/c Dr.   2,50,000  
  To 12% Debenture A/c     2,50,000
  (Being 5,000 debentures allotment due @ Rs, 50 )      
         
  Bank A/c Dr.   2,50,000  
  To 12 % Debenture Allotment A/c     2,50,000
  (Being allotment money received )      
         

(b) When premium is received on allotment

Journal
Date   Particulars
L.F. Debit Credit
  Bank A/c Dr.   3,00,000  
  To 12 % Debenture Application A/c       3,00,000
  (Being app. Money received )      
         
  12 % Debenture Application A/c Dr.   3,00,000  
  To 12% Debenture A/c     2,50,000
  (Being 5,000 debenture allotted )      
         
  12 % Debenture Allotment A/c Dr.   3,00,000  
  To 12% Debenture A/c     2,50,000
  To Securities Premium Reserve A/c     50,000
  (Being allotment due)      
         
  Bank A/c Dr.   2,50,000  
  To 12 % Debenture Allotment A/c     2,50,000
  (Being allotment money received )      
         

It all about Question 1 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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