Question 44 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 44 Chapter 9 of +2-A

Table of Contents

The solution of Question 44 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)

44. A limited company issued Rs 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.
Pass the Journal entries for issue of debentures and writing off the discount.

The solution of Question 44 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		94,000
	To Debenture Application & Allotment A/c				94,000
	(Being application money received on 9%debenture )
	Debenture Application & Allotment A/c	Dr		94,000
	Discount on issue of Debenture A/c	Dr		6,000
	To 9%Debenture A/c				1,00,000
	(Being application and allotment money adjusted )
	Statement of Profit & Loss A/c	Dr		6,000
	To Discount on issue of Debenture A/c				6,000
	(Being a discount issue of debenture written off )