Question 4 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 4 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 4 Chapter 9 of +2-Part-1

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  

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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