Question 5 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 5 Chapter 9 of +2-Part-1 - USHA Publication 12 Class Part - 1

Question 5 Chapter 9 of +2-Part-1

5. (Issued at Discount/Balance Sheet) Samsung company issued 10,000 12 % Debentures of Rs. 100 each at 10% discount to a political party. The debentures were fully subscribed. Pass 13 journal entries and prepare Balance Sheet.

The solution of Question 5 Chapter 9 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
1 Bank A/c Dr.   9,00,000  
  To Debenture Application & Allotment A/c       9,00,000
  (Being app. Money received for 10,000 debentures 2 Rs. 90 per share)      
         
2 Debenture Application A/c Dr.   9,00,000  
  Discount on Debenture A/c     1,00,000  
  To 12% Debenture A/c     10,00,000
  (Being 10,000 debentures allotted )      
         

Samsung Company Ltd. Balance Sheet Consolidated

Sr. No. Particulars
Note No. FIG. RELATING TO CURRENT REPORTNG PERIOD FIG. RELATING TO PREVIOUS REPORTNG PERIOD
I Equity & Liability      
  Non current Liabilities      
  Long terms borrowings 1 10,00,000  
  Total   10,00,000  
II Assets      
  Non -Current Assets
2 1,00,000  
  Current Assets
     
  Other Non Current Assets
     
  Cash & Cash equivalent
3 9,00,000  
  Total   10,00,000  

Notes to Account

Particulars
Note No. 1 Long terms borrowings  
  10,000 12 % Debentures of Rs. 100 10,00,000
     
Note No. 2 Other Non Current Assets  
  Discount on issue of debentures (unamortized ) 1,00,000
     
Note No. 3 Cash & Cash equivalent  
  Cash at Bank 9,00,000

Working Notes :-

1. Debentures are treated as long term. Hence, discount on issue of debentures is also treated as non – current assets in the absence of information regarding maturity of debentures.

It all about Question 5 Chapter 9 of +2-Part-1, If you have any problem please comment below.

Issue of Debentures from the point of view of Redemption

You can also Check out the solved question of other Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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