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Question 43 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 43 Chapter 9 of +2-A
Question No43 - Chapter No.9 - T.S. Grewal +2 Book 2019-Solution

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Question 43 Chapter 9 of +2-A

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43. Kitply Ltd.issued Rs 2,00,000, 10% Debentures at a discount of 5% .The terms of issue provide the repayment at the end of 4 years. Kitply Ltd.has a balance of Rs 5,00,000 in Securities Premium Reserve. The company decided to write off discount on issue of debentures from Securities Premium Reserve in the first year.
Pass the journal entry.

The solution of Question 43 Chapter 9 of +2-A: – 

 

DateParticulars
L.F.DebitCredit
 Security Premium Reserve A/cDr 10,000 
 To Discount on issue of Debentures A/c   10,000
 (Being a discount issue of debenture written off )    

Working Note

 Discount on issue of Debentures = 2,00,000×5% = Rs 10,000

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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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 2-min

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