Question 36 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 36 Chapter 9 of +2-A

Table of Contents

The solution of Question 36 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)

36. Pass necessary Journal entries relating to the issue of
debentures for the following:
(a)Issued Rs 28,000; 10% Debentures of Rs 100 each at a premium of
15% redeemable at par.
(b)Issued Rs 30,000; 10% Debentures of Rs 100 each at a premium of
10% and redeemable at a premium of 15%.
(c)Issued Rs 80,000; 10% Debentures of Rs 100 each at par repayable
at a premium of 10%.

The solution of Question 36 Chapter 9 of +2-A: –

(a)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		32,300
	To Debenture Application and Allotment A/c				32,300
	(Being Debenture application and allotments Received )
	Debenture application and allotment A/c	Dr		32,300
	To 10%Debenture A/c				28,000
	To Securities Premium Reserve A/c				4,200
	(Being Debenture issued )

(b)

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Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		33,000
	To Debenture Application and allotment A/c				33,000
	(Being Debenture application and Allotment Received )
	Debenture application A/c	Dr		33,000
	Loss on the issue of Debenture A/c	Dr		4,500
	To 10%Debenture A/c				30,000
	To Securities premium reserve A/c				3,000
	To Premium on Redemption of Debentures A/c				4,500
	(Being Debenture issued )

(c)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		80,000
	To Debenture Application and Allotment A/c				80,000
	(Being Debenture application and Allotment Received )
	Debenture application A/c	Dr		80,000
	Loss on the issue of Debenture A/c	Dr		8,000
	To 10%Debenture A/c				80,000
	To Premium on the redemption of debenture A/c				8,000
	(Being Debenture issued )