Question 50 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 50 Chapter 9 of +2-A

Question 50 Chapter 9 of +2-A

50. Office Products Ltd, issued on 1st April 2018, 20,000, 9% Debentures of 􀀀 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. The issue price was payable along with the application. Pass the necessary journal entries.

The solution of Question 50 Chapter 9 of +2-A: – 

 

Date Particulars
L.F. Debit Credit
April 1 Bank A/c Dr   22,00,000  
  To Debenture Application and Allotment A/c       22,00,000
  (Being application and allotment money received foe 9%Debenture )        
  Debenture Application and Allotment A/c Dr   22,00,000  
  Loss on the issue of Debenture A/c Dr   1,00,000  
  To 9% Debenture A/c       20,00,000
  To Securities Premium A/c       2,00,000
  To Premium on Redemption of Debenture A/c       1,00,000
  (Being 8% Debenture issued at a discount and redeemable at a premium )        
Mar 31 2019 Securities Premium Reserve A/c Dr   1,00,000  
  To Loss on the issue of Debentures A/c       1,00,000
  (Being loss on issue of debenture written off from Securities Premium Reserve )        

 


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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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