Question 45 Chapter 9 of +2-A
Table of Contents
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 ) | |||||
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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