Question 34 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 34 Chapter 9 of +2-A

Table of Contents

The solution of Question 34 Chapter 9 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

34. Footfall Ltd. issues 10,000 Debentures of 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.

The solution of Question 34 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		9,00,000
	To Debenture Application/c				9,00,000
	(Being Debenture application Received)

	Debenture application A/c	Dr		9,00,000
	Debenture application A/c	Dr		1,00,000
	To Debenture Application/c	Dr		50,000
	To 12% Application A/c				10,00,000
	To Debenture Application A/c				50,000
	(Being 10,000 Debenture of Rs 100 each issued at debenture )

	Bank A/c	Dr		10,00,000
	Premium on Redemption A/c	Dr		50,000
	To Debenture Application/c				10,50,000
	(Being amount due for redemption on paid to premium redemption )

	Debenture Holder’s A/c	Dr		10,50,000
	To Bank A/c				10,50,000
	(Being amount due for re redemption to debenture holders )