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

Question 38 Chapter 9 of +2-A

Table of Contents

The solution of Question 38 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)

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: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		42,000
	To Debenture Application and Allotment A/c				42,000
	(Being Debenture Application Received )
	Debenture application and allotment A/c	Dr		42,000
	To 12%Debenture A/c				40,000
	To Securities Premium A/c				2,000
	(Being Debenture issued at a premium)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		73,500
	To Debenture Application and Allotment A/c				73,500
	(Being Debenture Application Received )
	Debenture Application A/c	Dr		73,500
	Debenture Application A/c	Dr		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)