Question 48 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 48 Chapter 9 of +2-A

Table of Contents

The solution of Question 48 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)

48. On 1st April 2017, Solar Power Ltd. issued 10,000, 8% Debentures of 􀀀 100 each at a discount of 5% redeemable at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made. The company had balance in the Securities Premium Reserve of 􀀀 80,000.
Prepare the Balance Sheet extract as of 31st March 2018.

The solution of Question 48 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
2017
1 Apr.	Bank A/c	Dr		9,50,000
	To Debenture Application & Allotment A/c				9,50,000
	(Being application money received on 8%debenture )
	Debenture Application & Allotment A/c	Dr		9,50,000
	Loss on the issue of Debenture A/c	Dr		2,00,000
	To 8%Debenture A/c				10,00,000
	To Premium on the redemption of Debenture A/c				1,50,000
	(Being application and allotment money adjusted along with 5% premium payable on redemption )
2018
31 Mar.	Securities Premium Reserve A/c	Dr		80,000
	Statement of profit & loss A/c	Dr		1,20,000
	To Loss on the issue of Debentures A/c				2,00,000
	(Being a discount issue of debenture written off )

Particulars (1)	Note no. (2)	Figures as at the end of the Current Reporting Period (3)	Figures as at the end of the Previous Reporting Period (4)
I. Liabilities
1. Shareholders’ Fund
(a) Reserve and Surplus			1,20,000
Total			1,20,000


Particulars	Details	Amount
Reserve and Surplus
Securities Premium Reserve	80,000
Less: Loss on Issue of Debenture W/off.	80,000	0
Surplus,
Loss on the issue of Debenture	80,000
Loss on the issue of Debenture	80,000	0