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

Question 39 Chapter 9 of +2-A

Question 39 Chapter 9 of +2-A

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)        

 


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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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