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

Question 48 Chapter 9 of +2-A

Question 48 Chapter 9 of +2-A

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

 


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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)

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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