Question 38 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 38 Chapter 9 of +2-A

Question 38 Chapter 9 of +2-A

38. Pass necessary Journal entries for the issue of debentures in the following cases:
(a)Rs 40,000; 12% Debentures of 􀀀 100 each issued at a premium of 5% redeemable at par.
(b)70,000; 12% Debentures of 􀀀 100 each issued at a premium of 5% redeemable at Rs 10.

The solution of Question 38 Chapter 9 of +2-A: – 

 

DateParticulars
L.F.DebitCredit
 Bank A/cDr 42,000 
 To Debenture Application and Allotment A/c   42,000
 (Being Debenture Application Received )    
 Debenture application and allotment A/cDr 42,000 
 To 12%Debenture A/c   40,000
 To Securities Premium A/c   2,000
 (Being Debenture issued at a premium)    

 

DateParticulars
L.F.DebitCredit
 Bank A/cDr 73,500 
 To Debenture Application and Allotment A/c   73,500
 (Being Debenture Application Received )    
 Debenture Application A/cDr 73,500 
 Debenture Application A/cDr 7,000 
 To 12%Debenture A/c   70,000
 To Securities Premium A/c   3,500
 To Premium on Redemption A/c   7,000
 (Being Debenture issued at a premium)    

 


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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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