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

Question 43 Chapter 9 of +2-A

Question 43 Chapter 9 of +2-A

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: – 

 

Date Particulars
L.F. Debit Credit
  Security Premium Reserve A/c Dr   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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

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