Question 32 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 32 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 32 Chapter 9 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

32. (Debentures Issued as Collateral Security/Balance Sheet) Agra Shoe company issued 9,000 12% debentures of ₹ 100 each at 10% premium to the public and 4,000 10% debentures of ₹100 each as security against a bank loan of ₹ 2,50,000. Prepare Balance Sheet showing both types of debentures.

The solution of Question 32 Chapter 9 of +2 Part-1: –

a) If in entries were passed on debentures being issued as collateral Secruity

Balance Sheet
Particulars
Particulars
Reverse & Surplus   Cash at Bank 12,40,000
Secruity premium 90,000    
Secured Loans      
12% Debentures 9,00,000    
(9,000 debentures of Rs. 100 each issued for cash)      
(4,000 debentures of Rs. 100 each given as collateral Secruity)      
Bank Loans 2,50,000    
(4,000 debentures of Rs. 100 each given as collateral Secruity)      
  12,40,000   12,40,000

b) If in entries were passed on debentures being issued as collateral Secruity

Balance Sheet
Particulars
Particulars
Reverse & Surplus   Cash at Bank 12,40,000
Secruity premium 90,000 Debentures Suspense A/c 4,00,000
Secured Loans      
12% Debentures 13,00,000    
(13,000 debentures of Rs. 100 each issued for cash)      
(4,000 debentures of Rs. 100 each given as collateral Secruity)      
Bank Loans 2,50,000    
(4,000 debentures of Rs. 100 each given as collateral Secruity)      
  16,40,000   16,40,000

It all about Question 32 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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