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Question 4 Chapter 9 of +2-Part-1
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4. (Issue at Premium/Journal/Balance Sheet) Aurangabad Mills Ltd. Issued Rs. 5,00,000,6% Debentures of Rs. 500 each at a premium of 5%. The amount was payable as follows:
On application Rs. 100
On allotment Rs. 250(including premium)
On first call Rs. 175.
The company received applications for 1,020 debentures and allotment being made to the applicants of 1000 shares. Excess amount was refunded.
Give journal entries and show the balance sheet.
The solution of Question 4 Chapter 9 of +2 Part-1: –
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr. | 1,02,000 | |||
| To Debenture Application A/c | 1,02,000 | ||||
| (Being app. Money received ) | |||||
| Debenture Application A/c | Dr. | 1,02,000 | |||
| To 6% Debenture A/c | 1,00,000 | ||||
| To Bank A/c | 2,000 | ||||
| (Being transfer of app. Money on 1,000 debentures & refund of amount on 20 app.) | |||||
| Debenture Allotment A/c | Dr. | 2,50,000 | |||
| To 6% Debenture A/c | 2,25,000 | ||||
| To Securities Premium Reserve A/c | 25,000 | ||||
| (Being allotment amount transferred to debentures & premium A/c) | |||||
| Bank A/c | Dr. | 2,50,000 | |||
| To Debenture Allotment A/c | 2,50,000 | ||||
| (Being allotment money received ) | |||||
| Debenture First & Final Call A/c (1,000 X 30) | Dr. | 1,75,000 | |||
| To 6% Debenture A/c | 1,75,000 | ||||
| (Being first & final call money due ) | |||||
| Bank A/c | Dr. | 1,75,000 | |||
| To Debenture first & final call A/c | 1,75,000 | ||||
| (Being first & final call money received ) | |||||
Aurangabad Mills Ltd. Balance Sheet Schedule III (Part I)
| Sr. No. | Particulars |
Note No. | FIG. RELATING TO CURRENT REPORTNG PERIOD | FIG. RELATING TO PREVIOUS REPORTNG PERIOD | |
| I | Equity & Liability | ||||
| Shareholders fund | |||||
| Reserve & Surplus | 1 | 25,000 | |||
| Non current Liabilities | 2 | 5,00,000 | |||
| Current Liabilities | |||||
| Total | 5,25,000 | ||||
| II | Assets | ||||
| Non -Current Assets |
|||||
| Current Assets |
|||||
| Cash & Cash equivalent |
|||||
| Cash at bank |
5,25,000 | ||||
| Total | 5,25,000 | ||||
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Note 1:- Reserve & Surplus
| Particulars |
Current year | Previous year | |
| Secruity Premium | 25,000 | ||
| Total | 25,000 | ||
Note 2 :- Non – Current Liabilities
| Particulars |
Current year | Previous year | |
| 5 % Debentures | |||
| 1,000 Debentures of ₹ 500 each | 5,00,000 | ||
| Total | 5,00,000 | ||
It all about Question 4 Chapter 9 of +2-Part-1, If you have any problem please comment below.
Issue of Debentures from the point of view of Redemption
You can also Check out the solved question of other Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement