Question 45 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 45 Chapter 9 of +2-A

Table of Contents

The solution of Question 45 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)

45. On 1st January 2017, Raha Ltd. issued 6,000, 8% Debentures of the nominal face value of Rs 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of Rs 10,000 in Securities Premium Reserve.
Pass Journal entries. Also, give Journal entries for writing off Loss on Issue of Debentures..

The solution of Question 45 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
2017
Jan 1	Bank A/c	Dr		6,00,000
	To Debenture Application & Allotment A/c				6,00,000
	(Being application money received on 9%debenture )
Jan 1	Debenture Application & Allotment A/c	Dr		6,00,000
	Loss on the issue of Debenture A/c	Dr		30,000
	To 9%Debenture A/c				6,00,000
	To Premium on the redemption of Debenture A/c				30,000
	(Being application and allotment money adjusted along with 5% premium payable on redemption )
Dec 1	Securities Premium Reserve A/c	Dr		10,000
	Statement of profit & loss A/c	Dr		20,000
	To Loss on the issue of Debentures A/c				30,000
	(Being discount issue of debenture written off )