Question 35 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 35 Chapter 9 of +2-A

Table of Contents

The solution of Question 35 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)

35. Pass necessary Journal entries relating to the issue of debentures for the following:
(a)Issued Rs 4,00,000; 9% Debentures of Rs 100 each at a premium of 8% redeemable at 10% premium.
(b)Issued Rs 6,00,000; 9% Debentures of Rs 100 each at par, repayable at a premium of 10%.
(c)Issued Rs 10,00,000; 9% Debentures of Rs 100 each at a premium of 5%, redeemable at par.

The solution of Question 35 Chapter 9 of +2-A: –

(a)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		4,32,000
	To Debenture Application and allotment A/c				4,32,000
	(Being Debenture application and allotement Received )
	Debenture application and allotment A/c	Dr		4,32,000
	Loss on issue of Debenture A/c	Dr		40,000
	To 9% Application A/c				4,00,000
	To Securities Premium Reserve A/c				32,000
	To Premium on Redemption of Debenture A/c				40,000
	(Being Debenture application Received )

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(b)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		6,00,000
	To Debenture Application and allotment A/c				6,00,000
	(Being Debenture application and Allotment Received )
	Debenture application A/c	Dr		6,00,000
	Loss on the issue of Debenture A/c	Dr		60,000
	To Debenture Application/c				6,00,000
	To Premium on Redemption/c				60,000
	(Being Debenture issued )

(c)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		10,50,000
	To Debenture Application and Allotment A/c				10,50,000
	(Being Debenture application and Allotment Received )
	Debenture application A/c	Dr		10,50,000
	To Debenture Application/c				10,00,000
	To Securities Premium Reserve A/c				50,000
	(Being Debenture issued )