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

Question 35 Chapter 9 of +2-A

Question 35 Chapter 9 of +2-A

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 )        

 

(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 )        

 

 


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Also, Check out the solved question of previous Chapters: –

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)

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

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

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