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

Question 45 Chapter 9 of +2-A

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Question 45 Chapter 9 of +2-A

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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: – 

 

DateParticulars
L.F.DebitCredit
2017     
Jan 1Bank A/cDr 6,00,000 
 To Debenture Application & Allotment A/c   6,00,000
 (Being application money received on 9%debenture )    
Jan 1Debenture Application & Allotment A/cDr 6,00,000 
 Loss on the issue of Debenture A/cDr 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 1Securities Premium Reserve A/cDr 10,000 
 Statement of profit & loss A/cDr 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)

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)

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