Question 39 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 39 Chapter 9 of +2-A

Table of Contents

The solution of Question 39 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)

39. Pass necessary Journal entries for the issue of Debentures in the following cases:
(a)Rs 40,000; 15% Debentures of Rs 100 each issued at a discount of 10% redeemable at par.
(b)Rs 80,000; 15% Debentures of Rs 100 each issued at a premium of 10% redeemable at a premium of 10%.

The solution of Question 39 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		36,000
	To Debenture Application A/c				36,000
	(Being Debenture Application Received )
	Debenture Application A/c	Dr		36,000
	Discount on issue of Debenture A/c	Dr		4,000
	To 15%Debenture A/c				40,000
	(Being Debenture issued at a premium)

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		88,000
	To Debenture Application and Allotment A/c				88,000
	(Being Debenture Application Received )
	Debenture Application A/c	Dr		88,000
	Loss on issue of Debenture A/c	Dr		8,000
	To 15%Debenture A/c				80,000
	To Securities Premium A/c				8,000
	To Premium on Redemption A/c				8,000
	(Being Debenture issued at a premium)