Question 4 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 4 Chapter 9 of +2-A

Table of Contents

The solution of Question 4 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)

4. Narain Laxmi Ltd. Invited application for issuing applications for issuing 7,500 12%Debenture of Rs 100 each.at a premium of Rs 35 per debenture. The full amount was payable on application. The application was received for 10,000 debenture. Allotment as made to all the application on pro-rata basis.
Pass necessary journal entries for the above transactions in the books of Narain Laxmi ltd.

The solution of Question 4 Chapter 9 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		13,50,000
	To 9%Debenture application A/c				13,50,000
	(Being the application money received )
	9% Debenture application A/c	Dr		13,50,000
	To 9% Debenture A/c				7,50,000
	To securities Premium A/c				2,62,500
	To Bank A/c				3,37,500
	(Being application money transferred to equity share capital )